More Malaysians planning for retirement early

According to a survey, Malaysians are planning for their retirement at a younger age. The AXA Life Outlook Index survey was conducted in eight key Asian markets – China, Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines and Thailand – to measure optimism and confidence level on four core aspects of life, namely career, family, health and retirement. The survey revealed that the average age to start retirement planning for Malaysians is 34, while the regional average age is at 36. In comparison, the 2007 survey conducted two years ago had indicated that Malaysians started planning at 37.
More respondents of the biennial survey are also aware of the importance of retirement planning, with the rate of people who don’t plan dropping to 7% compared to 12% in 2007. Chief Marketing Officer of AXA Affin Life Insurance Bhd Nicholas Kua says that given the current economic condition, Malaysians generally are taking a much more positive attitude towards retirement planning. However, the gloom in global economy has cast a shadow on Malaysians as the Life Outlook Index registered a 9.5% drop to 59.9% of Malaysians optimistic about life in general, second only to our southern neighbour Singapore. People in India and the Philippines are the most optimistic in terms of general outlook in the near next 12 months.
The survey showed that the aspect of life with most impact in the overall life outlook was one’s career. Job satisfation rate of Malaysians has fallen to 23% from 36% in 2007. “The result may be influenced by uncertainties in the economy, coupled with rising unemployment rate expected to touch 4.5% from 3.1% last year,” says Kua, adding that these factors resulted in respondents placing importance on career and retirement before family and health. “It is evident Malaysians are shaken up by the global economic gloom and they are now acutely aware that they need to focus on some factors which they might have paid less attention to in the past years when the economy was much better.” Despite the pessimism, more Malaysians (60% of respondents) still plan to have children with half of that total wanting to have more than three kids.
The survey also showed that more Malaysians are opting to invest in more conservative products offering protection as well as saving. 67% of Malaysians – more than in any other market surveyed – say they prefer insurance products with protection and saving features, rather than products offering higher returns but carry higher risk. More Malaysians are planning to buy life insurance products, at 45%, versus 26% in 2007.

Why they prefer to work beyond retirement age

Most people in their younger years look forward to retirement after a lifetime of hard work. Yet as people get close to retirement, they begin to reconsider – and think of working longer.
While many responses to questions in the 2010 AXA Retirement Scope survey revealed interesting variations from one country to the next, by and large, the trend of people wanting to work longer was fairly consistent across the region.
Most said their strongest perception of retirement was that it represented a time to spend more time with friends and family, to take better care of one’s self and even to pursue interests they did not have time for when they were working. But the relative value of these does vary.
For example, in Indonesia, as compared with the other Asian countries, rather than thinking about taking care of themselves, Indonesians prefer to spend their retirement with their families. More than 95% of respondents ranked this as the top vision for their retired years.
This is typical of Indonesian culture, where family bonds are of greater importance, as was also the case in countries such as Thailand, where it was also 95%, and China, where 93% ranked it at the top.
Yet, with all the reasons to look forward to retirement, the same survey also found that as people approach actual retirement, they begin to think they should work longer. By and large across all the countries surveyed, young people cited the ideal retirement age to be in the low 50s (with only one or two years of differences from one country to the next). But mid-life workers placed the ideal retirement age in the mid-50s, while those close to retirement placed it either in the high-50s or low-60s.
What accounts for this new trend? Indications of what shifts this perception are seen in other parts of the same survey. For example, many may see the need to catch up on financial planning they may not have carried out in their earlier years.
Indeed, across Asia there is a trend for people to prepare for retirement late in life, often giving them insufficient time to do it adequately.
Especially in this era of economic uncertainty, remaining in the workforce or continuing a professional career can help safeguard your lifestyle while also reinforcing your finances – perhaps even recouping value of assets that may have declined since 2008.
Another key factor cited was the loss of social status when people stop working. For example, 57% of Chinese retirees felt they had lost social recognition in some way, while 66% of retired Indians noted this, as did 54% of Singaporeans and 46% of retirees across Southeast Asia in general.
Another key consideration, of course, is also financial. Many retirees reported that they felt they needed to continue working to secure their income – although the percentage of people reporting this sentiment also varied, most likely in line with the level of government support for retirees – or the perception of how sufficient those benefits are.
For example, 58% of respondents in China said they felt they needed to continue working for financial reasons, while in Australia only 31% did. India and Japan ranked highest, with 80% and 70% respectively. No huge surprise in Japan’s case as the challenge of its aging population and shrinking numbers of working people to support state pensions has been known for decades.
In Southeast Asia, 69% felt they needed to continue to work for financial reasons.
Of course, continuing to work longer in life does offer benefits, and can present a valuable opportunity to more effectively plan retirement and ensure you continue to enjoy the lifestyle you have now well into the future.
If you started retirement planning late in life and did not set aside sufficient income to support yourself later in life, there are still investment opportunities. And, the right financial approach can also better position you so that when you do choose to retire, it is on your terms and when you want.

Tax planning for retirement

Financial advisers will tell you that if you want to maintain a desirable standard of living in retirement, effective financial planning often requires being prepared to commit in advance to your financial obligations.
For those whose retirement date is in the horizon, you should perhaps take stock of your tax situation.
What can be done to the salary arrangements with your employer so that you could defer taking part of your salary and have it paid into a “tax shelter”?
The term tax shelter in this context is intended to apply to certain payments paid to you on retirement, which are exempt from tax.
Thus, your entitlement to tax free status is protected under the law provided the payments qualify. The two most common payments under this category are retirement plan payments and retirement gratuities.
Retirement plan payments
These would typically apply to your payments to the Employees Provident Fund (EPF).
Under the EPF rules, withdrawals from the fund may be made under certain circumstances, the most common of which is when you reach retirement age.
This is recognised by the EPF to be 55 years for both men and women i.e. these are the “retirement” withdrawal dates.
When you receive payments from the EPF, the whole amount is exempt from tax.
The exempt status is available under the tax law and not under the EPF rules.
Thus, the cumulative sum of all your past contributions plus attributable interest or dividends would benefit from the exemption.
Retirement gratuity payments
The tax law provides for specific exemption on the amount of gratuity, which your employer makes to you on retirement.
Such payments are intended to reflect your employer’s appreciation of your past services and the exemption is not subject to any limit as to quantum.
It is, however, subject to you having “retired” from employment, which is a question of fact taking into consideration all the prevailing circumstances.
Should there be any doubt as to whether you have in fact “retired”, it would be wise to seek competent professional advice to ensure that your entitlement to exemption is valid. This is especially important when you are being asked to stay on by your current employer.
Salary sacrifice
A salary sacrifice is when an employee gives up his right to receive part of his cash pay which is due to him under his contract of employment.
It is normal for the sacrifice to be made in return for some benefit, which is not in cash form and either not taxable to the employee or taxable at a smaller amount.
If you sacrificed part of your cash pay in return for your employer increasing its contribution to your EPF to a maximum of 19% instead of the statutory limit, you will effectively have increased your potentially tax-free income when you receive it at retirement.
Your current tax bill will also be reduced in view of your reduced taxable cash pay.
You will not be able to exceed the 19% limit as your employer will suffer a tax disallowance; the idea of a salary sacrifice is that it should not involve additional tax cost to your employer.
A salary sacrifice involving an increase in the amount of retirement gratuity you will be receiving at retirement may be implemented in limited situations e.g. when your employer has established a specific employee retirement gratuity plan.
Otherwise your salary sacrifice will not be matched by a corresponding assumption of contractual obligation on the part of your employer.
The salary sacrifice affects the terms of contract between the employer and employee and is therefore a matter of employment contract law and not tax law.
Tax law looks at the new contractual terms and the tax effect would arise according to those terms. In essence, tax law looks at the legal form and legal substance of the contractual arrangement.
Heaton vs Bell principle
This British case established the principle that where an employee adopts a salary sacrifice with the right to revert to the original gross salary at any time, then the salary sacrifice will not have been effective.
Carrying on working
If you plan to be re-employed following retirement and it is with the same employer, then you should consider whether this is likely to affect your retirement status i.e. whether you may not be entitled to the retirement gratuity exemption.
In most cases, there should not be a problem where the new job reflects different roles and responsibilities.
If you are to be retained as an adviser or consultant, you should consider setting up a personal service company if you can benefit from the reduced rate of 25%.
In general, it may be wise to seek appropriate professional advice particularly when you sense that your tax affairs tend to become more complex.

Importance of planning early

Retirement represents a great opportunity for people to reward themselves after a lifetime of hard work. For most people, that meant decades of long hours in the office to provide for their families and fund children’s education. When those years of hard work are accomplished, retirement offers the opportunity to spend more time with friends and family, to travel, and to enjoy activities you did not have time for before.
But, for many, the big question is: How will I pay for all this once I am no longer drawing income from my job? Especially in these uncertain economic times, as clouds appear on the horizon, that could make realising this dream more difficult.
The worldwide financial crisis that hammered US financial institutions and crushed the fiscal strength of numerous European countries found its way to Asia.
These events serve as a wake-up call that, as financial services generally caution, previous performance should not be taken as an indicator of future events. While economies, stock markets and property values grew and were solid investments through most of the 1980s and 1990s, the currency crisis of 1997 and the more recent financial services meltdown that started in 2008, show that when times are good, that’s precisely the time to take decisive action to prepare for the future and build a cushion against potential economic downturns.
Getting started early in life is one of the most important things you can do. If the stock market crashes and property prices fall when you are in your 20s, it’s painful, but you can still recover lost wealth. But what if that happens much later in life, just as you are on the cusp of retirement?
If you’ve planned for retirement and taken the right steps along the different stages of your life, the answer is simple: relax, carry on and ease into retirement safe in the knowledge that you’ve done the right things to secure your golden years. This means following basic principles such as consistently saving and investing throughout your working years, and shifting your investments from higher risk assets when you are younger to increasingly lower-risk instruments as you get older.
The problem is, relatively few people plan for retirement early enough. The conclusions of recent research, the 2010 AXA Retirement Scope, show that only 40 per cent of respondents in Indonesia had started planning for retirement – this is down from 57 per cent just three years ago. In Hong Kong it was just 57 per cent, in Thailand only 54 per cent, and in the Philippines a mere 30 per cent (down from 41 per cent).
Few people even know how much they’ll need to retire. In Hong Kong, about half of workers know the approximate amount of their future retirement income, but only a minority know the exact amount. In Thailand, around 80 per cent said they could not predict their retirement income. The same is true for the Philippines – a major jump from three years ago when it was 50 per cent. This compares with 58 per cent in Japan and 62 per cent in Singapore.
And, while preparation and awareness are sliding, the ability of government-run programmes to serve as a retirement safety net is also weakening. Many Asian countries are experiencing declines in the number of young, working-age people – a smaller number of taxpayers will need to fund programmes for an increasing number of retirees. In Thailand, for example, the overall population is expected to grow just 6 per cent in the next 10 years, while the number of retired people drawing government benefits is expected to jump 50 per cent from 8 million to 12 million. And, improved standard of living means the life expectancy of the average Thai will be 81 years within the next decade – 10 years longer than it was in 2006.
Add this to the many other strains on government coffers, and you can pretty much count on the programmes that your parents relied on to provide retirement income being squeezed or phased out altogether by the time you reach retirement age. In fact, the Thai government has issued statements alerting young people that they should prepare for cuts in retirement benefits in the coming years.
In Malaysia, the average EPF retirement account has only about RM80,000, and most retirees use up their EPF money within three years of withdrawing it. To help address this, the government has said they are considering allowing retirees to withdraw savings in stages over time, rather than taking it all in one lump sum. And, more than half of young and middle-aged working people say they would like to supplement their EPF fund with savings and investment instruments of their own. For instance, retirees in the UK are constantly seeking various ways to boost their retirement fund, such as equities and bonds or private retirement schemes.
Now, knowing that there is greater need than ever before to begin planning early, what should you do? First, you need to start saving on a regular basis – and to help you figure out what to do with the money, the best approach is to seek the advice of a professional investment adviser.
A licensed, qualified adviser can help you create a portfolio with the right mix of investments and protections. Many life insurance policies, for example, will not only provide for your family should something happen to you, but will also pay out retirement benefits to you later in life. Education plans can help you put aside small increments of money each month, invest it and grow it into a fund large enough to cover your children’s education expenses – which often hit later in life just as many people begin thinking about retirement. There are even instruments that pay you cash to make up for lost wages should you for some reason be unable to work.
Times are changing, uncertainty is increasing – and those few areas where the future can be more accurately predicted show that the need is greater now than ever before for individuals to take greater responsibility for safeguarding their own retirement.

Setting & Achieving Financial Goal

According to some estimates, less than 5% of the population has clearly defined goals. Yet, setting financial goals is the first step to developing an effective financial plan. Without goals you may be dissatisfied with where your life is going and how you are using your resources. Without goals, you may find whatever happens at any given moment will set you off in a new direction, without thought to where you will end up. When you set goals you are saying to yourself, I have a future and I can control it. The goals you set will help you to decide where you are going, what you need to do to get there and when you want to arrive.
Values And Goals
Goals that you set should be very personal and based on your values. Your values are what you hold dear, what you believe in and what you would like to represent. Some values that may influence goals you set are honesty, status or security. Without knowing what is important to you, you will find it difficult to set satisfying goals. When you understand what your values are, you will find it is easier to set goals that you can achieve. Establishing what your values are will also allow you to decide which goals are most important and worth working toward.
What Are Goals?
You may have goals that are only mental. That’s all right. All of us have some goals in our minds only. However, when you write down goals, you will increase the possibility of reaching them. Writing down goals in specific terms forces you to think about whether you really need or want a particular goal. It also helps you decide whether you are willing to spend the time or money necessary to achieve the goal.

• Goals state what you want to do or achieve. Goals will give your life direction. Financial goals will help you to determine where your money will go.
• Goals should be an extension of your values. If the goals are not related to your beliefs about what is important and good in life, the possibility of your achieving the goals is unlikely. If you do achieve a goal not related to the values you hold, you will probably feel unrewarded and dissatisfied.
• Goals need to be specific. The goal, I want lots of money in the bank, has little meaning. Is “lots of money” $5,000 or $50,000? When will you know you have “lots of money”? Write each goal in specific terms. Write the goal in terms you can measure.

Financial Goals
List some things you want that will require financial resources. If you are setting financial goals for the family, each family member should write a list of wants requiring financial resources.

Short-term Goals
Goals focus on what, what you need or what you want. Some goals you have listed can be achieved in two years or less. These goals are referred to as short-term goals. From the list(s) you prepared, list the short-term goals. Be sure to combine the short-term goals of all family members.

Long-term Goals
Long-term goals relate to what you want to accomplish in five or more years. Long-term goals usually require more resources for achievement. From your list(s) of wants, write down your long-term goals. Include the long-term goals of all family members.

Prioritizing Goals
Typically there will be more goals than there are resources available for reaching them. You must now prioritize the goals you have. Most financial planners agree that it is almost impossible to work toward more than two or three goals at once. If you have already identified what you think is important, reaching the goals in order of importance will be fairly easy to do. Identify the goals in the order you want to reach them. To identify possible conflict, each family member should develop a list of short-term and long-term goals to work toward.

Potential Conflicts
When the individual lists are completed, hold a family discussion to resolve potential conflicts. As a family unit, decide on which individual and
family goals are important enough to use family resources to achieve.
You may find there is conflict among goals. This will be especially true if you are working on goals for the family, when each family member has a variety of goals. Open, honest discussions among family members can reduce conflict over the use of resources to reach family and individual goals. Goal setting and allocating resources to meet goals will require compromise among family members. Family members will need to treat each other’s goals with respect. Really listen to what others say about their goals and allow each person to state opinions, needs and feelings without fear of criticism.
Another area of conflict may exist between short-term and long-term goals. Short-term goals often serve as bridges for moving you from where you are to where you want to be. However, if too many short-term goals are not related to the achievement of long-term goals, progress toward reaching long-term goals may be slowed or even stopped. To achieve long-term goals, you may find it necessary to give up something you would like to have now. This may require the dropping of some short-term goals.
Resolving Conflict

• Is this a goal that must or ought to be reached?
• Does the goal contribute to what you want to do as an individual or a family?
• Will the goal help you to get what you really want?
• Is it a goal that could be delayed?
• Is the goal important to the wellbeing of the whole family?
• Is the goal so important it should be reached even though it would prevent reaching other goals?
• Will this short-term goal delay or defeat reaching long-term goals?
• Can the goal be reached with the resources you have?
• Is this a realistic goal?

Develop a Plan
Planning brings your future into the present. Remember, if you are serious about achieving your goals, you will want to work on only two or three goals at a time. You will need to develop a plan for reaching your top two or three goals. A successful plan for reaching a goal will include four basic parts:

1. Your plan should include a specific, measurable statement of the goal.
2. When you want to reach the goal.
3. Which resources you will need.
4. The specific steps you will need to take to reach the goal.

Now is the time for developing your plan. List what needs to be done in the order in which it needs to be accomplished.


Achieving Goals
To achieve your goals you must start now. The keys to achieving your goals are motivation, commitment and discipline. No one but you can put
your plan in action.

• You must be committed to it.
• You must practice discipline.
• You must be willing to defer things that would be nice now for the things you really want.

Goal-setting is a dynamic activity. Goals will be in various stages of development. Because events you did not foresee occur, you must make your plan flexible. Be ready to adjust to change. Part of planning is evaluating your progress so you will know when or where change needs to be made.There are no shortcuts to achieving your goals. Be positive about the outcomes you expect and describe those outcomes as clearly as you can. Keep sight of the goal you want to achieve. Monitor your plan on a regular basis and make changes as needed. Once you achieve a goal, move on to your next one.
Remember, with self motivation, commitment and discipline, you can achieve your financial goals and take control of where your money goes. A goal, like an idea, only has value when you act upon it.

The Effect of Inflation on Your Financial Future

Inflation is a major factor in the realm of personal finance; it’s a risk that affects investment positively or negatively. In broad terms, inflation is the general increase in prices because of a change in the money supply or the availability of goods. It is not merely a macro-economic concept, since it is relevant to the finances of individuals in four primary ways:
- Determining the real return of an investment
- Evaluating the purchasing power risk
- Interest rates for savings
- Effect on financial instruments


The Real Return of an Investment

This concept refers to the discounted nominal interest rate (rate after inflation is discounted). In the realm of investment, this effect is referred to as inflation risk. Although this risk has a significant effect on investors, the combined risks of taxation and inflation are far more serious than inflation risk on its own. A good example is the treatment of deferred annuities, where tax is paid on annuitized payments and the payments are typically fixed. Even after discounting for inflation, tax must be levied against the accumulated nominal returns (and not the discounted one – unfortunately). The real return is further eroded by the effect of inflation on the payments received.
Purchasing Power Risk
Inflation is also influential in this aspect of investment risk. The loss of purchasing power on investment returns is tied to the reduced purchasing power per dollar. Purchasing power risk affects the capital invested significantly. With low-yield investment instruments, the purchasing power of the principal declines rapidly.
Interest Rates
In macro-economics, there is a link between inflation and interest rates; a link that filters down to the individual. One of the methods of controlling inflation is to increase prime lending rates in an attempt to discourage borrowing. High interest rates also make investing more attractive than consumption, which reduces aggregate demand in the economy.
Financial Instruments

Interestingly, inflation is not always a bad thing. Certain financial instruments benefit from high inflation. Usually these are the types of investments that have intrinsic value, because such assets remain in high demand regardless of the level of inflation. Examples of such assets include art, real estate, gold and other commodities. High inflation increases the absolute returns on such investments. Notice that the opposite happens with regard to cash/income instruments like savings accounts and money market funds. When inflation is low, it is less risky to invest in cash and income options.
While many persons who are risk averse are afraid to “lose,” inflation causes real loss for the ultra-conservative investor. Portfolio diversification is not only important in managing market risk, but can also mitigate inflation risk. While limiting investment in growth options reduces market risk, increasing investment in them reduces inflation risk. It is a trade-off that emphasizes the delicate balance of diversification. Such information can only redound to the benefit of a prudent investor.

Cost of Education in Malaysia

The affordable cost of tertiary quality education is one of the good reasons why international students should choose Malaysia to study in. Your education cost is made up of:

• Course fees which include tuition fees and other study fees payable to the institution, depending on what you are studying and the duration of your course/study programme, and
• Other components like the living expenses which will depend on which location you are staying in, your type of accommodation and your lifestyle

Course Fees in Malaysia
Your course fees will consist of your tuition fees plus other related direct study expenses. Below are some or even all of the components that you may incur during your course of study :

• Registration Fee
• Tuition Fee
• Deposit
• Computer/Science Laboratory Fee
• Health & Hospitalisation Insurance Premium
• Library fee
• Other Incidental Costs

Tables below show the breakdown of estimated tuition fees at various levels of study ranging from pre-u studies, bachelor’s degrees to Ph.D levels.
A. Pre-University Programmes
Private Higher Educational Institutions (PHEIs) in Malaysia offer 2 types of pre-university qualification for SPM or GCSE ‘O’ leavers to pursue :

• External Qualifications
  These are pre-university qualifications awarded by External Academic Bodies of the respective countries.
• Internal Qualifications
  These are pre-university qualification courses developed and provided by individual private colleges or universities.
  The estimated fees are:

Tuition Fees (in RM/USD) – Foundation or Pre-University Studies
External Qualifications
GCE “A” Level, UK	RM12,000 – RM16,000 (USD3,240 – USD4,320)	18 months
Western Australian Matriculation (AUSMAT), Australia	RM7,000-RM9,900 (USD1,890 – USD2,680)	1 yr
South Australian Matriculation (SAM), Australia	RM9,000 – RM13,500 (USD2,430 – USD3,650)	1 yr
Canadian Pre-U, Canada	RM12,300 – RM13,500 (USD3,320 – USD3,650)	1 yr
Malaysian Qualifications
University Foundation Studies, Malaysia	RM7,000 – RM12,000 (USD1,890 – USD3,240)	1 yr

B. English Course
Malaysia is a multi-racial and multi-lingual country with most Malaysians communicating in English. Thus, this makes Malaysia an ideal place for non-native spea kers to practise the language. To help those who need to improve theirEnglish, many highly-experienced educational institutions and language centres in Malaysia offer language preparatory courses, especially to prepare International Students to sit for internationally-accepted English qualifications such as TOEFL and IELTS.
The estimated tuition fees are:

Tuition Fees (in RM/USD) – Preparatory Courses For English Proficiency Tests
Test of English as a Foreign Language (TOEFL)	RM500 – RM800 (USD135 – USD216)	2 months
International English Language Testing System (IELTS)	RM450 – RM800) (USD122 – USD216)	2 months

C. Bachelor’s Degree Programmes
Malaysia offers you many study pathways to complete an entire 3-year bachelor’s degree programme at a very competitive cost if you have GCE A-Levels / SAM or other equivalent pre-university qualifications. The estimated tuition fees are:

Tuition Fees (in RM/USD) – Bachelor’s Degree Programmes
Areas of Study	Paths of Study
	Complete Entire Bachelor’s Degree in Malaysia, via
	Path (i) Private Colleges’ 3+0 Foreign Degree Programme RM (USD)	Path (ii) Foreign University Branch Campuses’ Degree Programme RM (USD)	Path (iii) Malaysian Private Universities’ Degree Programme RM (USD)
Business	RM39,000 – RM52,000 (USD10,540 – USD14,050) (3 yrs)	RM48,000 – RM84,000 (USD12,970 – USD22,700) (3yrs)	RM30,000 – RM40,000 (USD8,110 – USD10,810) (3 yrs)
Engineering	RM45,000 – RM47,000 (USD12,160 – USD12,700) (3yrs for UK degree)	RM82,000 – RM102,000 (USD22,160 – USD27,570) (4 yrs for Aust degree) (3yrs for UK degree )	RM46,000 – RM52,000 (USD12,450 -USD14,050) (4yrs for Malaysian degree)
IT	RM33,000 – RM40,000 (USD8,920 – USD10,810) (3yrs)	RM52,800 – RM84,000 (USD14,270 – USD22,700) (3 yrs)	RM33,000 – RM43,000 (USD8,920 – USD11,620) (3 yrs)
Medicine	-	RM325,000 (USD87,840) (5yrs)	RM250,000 – RM333,000 (USD67,570 – USD90,000) (5yrs)
Hospitality & Tourism	RM45,000 – RM48,500 (USD12,160 – USD13,110) (3yrs)	-	RM31,000 – RM55,000 (USD8,380 – USD14,865) (3 yrs)
Music	RM54,000 (USD14,600) (3 yrs)	-	RM53,000 – RM59,000 (USD14,320 – USD15,950) (3 yrs)

D. Professional Qualification Programmes
If you choose to obtain a professional qualification, there are private educational institutions in Malaysia that prepare students to sit for external professional examinations, set by the various international examination bodies / professional boards, which will award the qualifications upon the student’s examination success.

Tuition Fees – External Professional Qualifications (in RM/USD)
The Chartered Association of Certified Accountant, UK (ACCA)	RM10,000 – RM12,000 (USD2,700 – USD3,240)
The Chartered Institute of Management Accountant, UK (CIMA)	RM10,000 – RM16,000 (USD2,700 – USD4,320)
Institute of Chartered Secretaries & Administrators, UK (ICSA)	RM10,000 – RM12,000 (USD2,700 – USD3,240)

E. Postgraduate Studies
The public universities as well as the private higher educational institutions (PHEIs) in Malaysia offer International Students, the MBA and other Master’s Degrees as well as Post-Graduate programmes at relatively competitive tuition fees combined with international standards of education. The estimated tuition fees are:

Tuition Fees (in RM/USD) – Postgraduate Studies Offered by Public Universities & PHEIs
Master of Business Administration (MBA)	RM20,000 – RM58,000 (USD5,410 – USD15,680)
Ph.D	RM10,500 – RM38,000 (USD2,840 – USD10,270)

F. Twining Degree Arrangement
Malaysian private institutions have made arrangements with overseas collaborative universities whereby students can enrol locally into programmes of “2+1″ Twinning Degree. In a twinning programme, students can complete the identical curriculum for either 1 year; 1″ years or 2 years or 2″ years in Malaysia, out of the 3-year degree programme before going overseas, to the twinning partner university, to complete the remaining duration of their degree. One of the outstanding feature for twinning degree programme is the students registers with both the local private education institutions and the foreign university (dual registration), and upon successful completion of the local segment he/she is guaranteed admission to the next level in the campus of the twinning-partner university, in the UK, USA, Australia and various other countries.

The table displayed below provides an indication of the estimated total course fees for the entire “2+1″ twinning programme, where the first two years of studies will be pursued at institutions in Malaysia while the final year will be completed at the twinning partner university in a foreign country such as Australia or UK.

The Estimated Entire Course Fees for Twinning Degree Programmes (in RM/USD)
Areas of Study	Twinning Degree Programme (2 or 3 years in Malaysia +1 year in Australia)	Twinning Degree Programme (2 years in Malaysia +1 year in UK)
Business	RM34,200 (2 yrs) + A$16,400 (1 yr) (USD21,653 for 3 yrs, 2 yrs in Malaysia + 1 yr in Aust)	RM42,750 (2 yrs) + £7820 (1 yr) (USD26,368 for 3 yrs, 2 yrs in Malaysia +1 yr in UK)
Engineering	RM46,500 (3 yrs) + A$18,500 (1 yr) (USD26,568 for 4 yrs, 3 yrs in Malaysia +1 yr in Aust)	RM48,650 (1 yr) + £21,000 (2 yrs) (USD52,878 for 3 yrs, 1 yr in Malaysia +2 yrs in UK)
IT	RM39,164 (2 yrs) + A$18,000 (1 yr) (USD23,720 for 3 yrs, 2 yrs in Malaysia +1 yr in Aust)	-

 

Cross – Country Comparison of Education Cost

Malaysia has always been a competitive study destination for International Students. The main attraction is the low cost of education and the added bonus of International Students being allowed to work in Malaysia while studying here. Among countries in this region where education is a revenue-generating commodity, Malaysia also offers one of the most simplified immigration procedures for those who qualify to obtain students’ passes to study.

Let us now examine the course fees and living expenses for International Students among the countries (that offer courses using English medium).

Cross-Country Comparison of Education Cost (per academic year) for a Bachelor’s Degree in Arts or Business for International Students
Country (public/private institutions)	Tuition Fees* (per academic year)	Living Costs (per year)	Total Education Cost (per annum)
Australia (public)	USD8,500	USD8,500	USD17,000
Canada (public)	USD7000	USD8,500	USD15,500
France (public)	Minimal	USD12,700	USD12,700
Malaysia (private)#	USD4,000	USD3,000	USD7,000
New Zealand (public)	USD10,000	USD11,500	USD21,500
Singapore (private)#	USD6,000	USD9,000	USD15,000
United Kingdom (public)	USD13,500	USD12,500	USD26,000
USA (public)	USD13,000	USD12,000	USD25,000
USA (private)	USD22,000	USD13,000	USD35,000

Conversion rate used: 1A$ = RM2.80, 1C$ = RM3.10, 1Euro = 4.70, 1NZ$ = 2.50, 1S$ = RM2.30, 1£ = RM7.00, 1USD = RM3.70
The data extracted may not be up-to-date and may not be obtained from the relevant sources & is meant for informational guide only

To emphasise the competitive advantage of Malaysia’s affordable costs, the table in the following section will provide a simple comparison of study costs between an Australian University branch campus in Malaysia and the Main University Campus in Australia.

An Example of Comparative Education Cost for a Bachelor’s Degree in Computer Science (3 years) of an Australian University
Item	Australian Branch Campus in Malaysia (Estimated Cost)	Australian University (Estimated Cost)
Tuition Fees	RM27,995 (USD7,566)	AS$23,110 (USD17,489)
Living Cost	RM11,000 (USD2,970)	A$15,000 (USD11,351)
Health Insurance	RM200 (USD54)	A$295 (USD223)
Average Education Cost for one (1) year	RM39,195 (USD10,590)	A$38,405 (USD29,063)
Total Education for Three (3) Years	RM117,585 (USD31,770)	A$115,215 (USD87,189)

Currency Conversion Rate : A$1=RM2.80, USD1=RM3.70

Source : StudyMalaysia.com Research Team

Disclaimer: The figures and data provided in this Chapter are estimated guide only. Students are advised to check with the respective institutions or authority concerned before proceeding with your enrollment.

5 Ways to Finance An Education

When funding an education, whether for yourself or your child, there are many options available.
You could use savings, borrow from your family or strive for a scholarship.
Taking a loan from a financial institution is usually the last resort mainly because they are rare. And when they are available, the interest tends to be high. For some people, this may be the only way to finance an education, so we take a look at all available products.

1. Study Loan
Previously commonly offered by financial institutions, study loans are now  harder to find. “This is likely due to non-repayment by borrowers,” says Thoo Mee Ling, secured lending head of OCBC Bank (M) Bhd.
“I suspect it (the dearth of loans) is because the funds (amount given out) are not controlled and unsecured. Also, many people borrowed money for studies abroad but they did not come back after finding a job there. This resulted in an increase in non-performing loans.”
But banks appear to be reintroducing study loans with a new underlying structure. Study loans can now be attached to housing loans, allowing financiers to leverage property as collateral while offering borrowers the option of using equity on their home to pay their education fees.
These loans may specify a lock-in period, levying a penalty charge on borrowers who settle their loans early.
For example, OCBC Bank (M) Bhd’s Secured Study Loan offers financing of up to 50% of the property’s value at BLR + 1.2% (excluding legal fees) and BLR + 1.5% (including legal fees). The maximum  tenure is 10 years and interest is calculated on a daily rest.
“Our study loan is essentially a term loan taken over and above a housing  loan. This way, borrowers can leverage on the equity in the house. If you happen to have a child who is studying, then you can leverage on the house and borrow. But if you don’t, you can take the loan first and put it on standby,” says Thoo.
“In a sense, this study loan is like refinancing a  house. If you refinance a house, the maximum loan you can get is 90%, but with the study loan, we give you more, so you can get up to 150% of the home’s price, or RM400,000, whichever is lower. There is an option to pay > interest for the first three years, and then pay the instalments from the  fourth year.”
2. Government Loan
A popular option is taking a loan from Perbadanan Tabungan Pendidikan Tinggi  Nasional (PTPTN). Those taking courses (from undergraduate to PhD) at local  institutions approved by the Public Service Department of Malaysia (JPA) can obtain financing of up to RM26,000 a year, which covers living costs as well. An interest rate of 1% is charged on the total amount.
“The PTPTN loan should be the first option,” says Adrian Ho, a chartered financial consultant. “Even with the administrative charges, the interest rate comes up to 2%, which is very low.”
A drawback of this loan is that it is mostly applicable to undergraduate  courses offered by local colleges and universities while Masters and PhD courses are limited to those offered by local public universities.
According to ptptn.gov.my, students need to maintain a minimum CPA average grade of 2.0 to continue receiving the financing. The maximum loan amount is unlikely to cover the total cost of the course, so borrowers will still need to look for other sources of financing.
3. Refinance Your Home
You can also refinance your home. Those with property that has appreciated in value can refinance with a bigger mortgage. With the BLR at 6.3%, rates  are currently considered competitive, with many housing loan packages offering BLR – 1.4% to BLR – 2.3%.
Ho advocates flexible mortgage products, especially for those who have paid up their housing loans.
“For those who are planning for their children’s education years in the future, go for the type of loans that allow you to pay down your loan and have a withdrawal facility that you can use when necessary.
“Then, try and settle your loan as soon as possible, but don’t close the account when you do. Technically, they will still deduct your instalment every month, but you avoid paying stamp duties and legal fees incurred when you take out a mortgage. Basically, this  approach works like an overdraft but charges a housing loan rate.”
Refinancing your home should only be done if the property’s value can cover your education fees. Most refinancing loans only give up to 90% of the property’s value.
4. Personal Loans
If you don’t have property to your name, then consider taking out a personal loan. Generally, personal loans offer financing of up to five times one’s salary without the need for a guarantor or any form of collateral.
The flipside, however, is that they also come with hefty interest rates of between 8% and 24%. Most personal loans in the market use a flat rate on the total loan, so the effective rate paid tends to be higher.
“The effective rate is usually almost double of what is stated. Hence, this should be a last resort for those who need to finance their studies,” says Ho.
The quantum given out is also a lot less compared with other loans, says Thoo. “Furthermore, approval rates are lower. For unsecured facilities such as personal loans, the underwriting is always stricter.”
5. Policy Loans
You may also consider taking a loan from your whole life participating  policy or endowment plan. No collateral is needed. “Use this option if your  insurance policy has not matured and there is substantial cash value. Rates are favourable, normally about 8%. This loan gives financing of up to 80% of the policy’s value. You can opt to repay the amount or wait until the policy matures and have the insurer offset the initial amount insured,” says Ho.
Source: The Edge Malaysia

Debt-ridden young adults seek professional help on money management

They are young and affluent but poor in managing their finances.
By the time they’re 30, they are so debt-ridden they have to seek professional help to get out of bankruptcy.
Credit Counselling and Debt Management Agency (AKPK) corporate affairs and communication head Devinder Singh said 15% of the more than 39,600 people enrolled in its debt management programme are below the age of 30.
He said, many young adults risk losing track with their finances, when they fail to observe basic rules in sound financial management.
He added that people would not be drowning in debt if their total loans did not exceed 40% of their gross monthly earnings.
“People must learn to draw up a budget and live within their means.
“If they can reduce expenditure by 5% a week, they can save 20% by the end of the month,” he said, adding that such practices would help build a strong financial foundation.
Devinder was responding to a report from the Insolvency Department that 50% of credit card holders who had been declared bankrupt were those below 30.
Under the Bankruptcy Act 1967, bankruptcy action could be initiated against those owing as low as RM30,000.
Devinder said people tend to default on payments due to poor financial planning and lack of control in credit card usage.
“Those having problems settling their debts should seek early help before compound interest takes a toll on them,” he advised.
Voicing similar concern over the alarming increase of young adults being declared bankrupt, Fomca chief executive officer Datuk Paul Selvaraj agrees that most of them are in trouble because of mismanagement of credit cards.
“Once declared bankrupt, life would be very tough because their names would be blacklisted in the Central Credit Reference Information System (CCRIS) database,” he said, adding that their applications for loans would be automatically rejected.
Paul said many young adults were trapped in debt because they lived beyond their means.
“When these youths are just starting out, they are highly impressionable and are easily influenced by friends’ lifestyles.
“They generally do not manage expenses properly, thus allowing credit to accrue over time,” he said.
He also said brand-conscious youths rarely take affordability into account.
“They do not feel the pinch when they swipe credit cards, but they will feel the pain at the end of the month,” he added.
Source: The Star

11 Ways To Get Out Of Debt & Stay Out Of Debt

In spite of steady, regular income there are so many individuals who live paycheque to paycheque, carry their credit card outstanding, and fail to save anything for retirement. If you are one of them, now is the right time to take action to come out of debt and stay out of debt. It is not only possible; it is unbelievably achievable.
1. List down all your debts
You need to take stock of all your loans. It could be credit card due, personal loan, car loan, housing loan, education loan, loan from FD, loan from insurance policies, loan from your employer, hand loan and so on. For each and every loan you need to note down how much you owe, the present interest rate, monthly installment and number of months to be paid.
2. Negotiate for lower interest rates
If you could negotiate the interest rate and bring it down then you can come out of debt faster. Most of the credit card companies come forward for negotiation if you really show interest in repaying. They need not run after you to collect the debt. It will reduce their expenses. So they will be happy to negotiate. Balance transfer offers from credit cards are also a way to reduce your interest rate.
3. Refinancing and consolidation
Replacing a loan with another is known as Refinancing. By doing a refinance it should reduce your interest rate and it should bring down the time you are in debt. But most often people go for refinance that provide them lower monthly installment but increasing the time they stay in debt.
4. Categorise your debt
Housing loan can increase your net worth over a period of time. Housing loan gives you tax benefit also. For a business man car loan provides some tax benefit. Based on these factors a debt needs to be categorized. This will help us in comparing different loans.
5. Prioritize your debts
After sorting out various loans, now we can comfortably prioritize the loans. Obviously this will be based on the interest rates and tax benefits. At times paying off a small loan first can give you a lot of motivation to get out of debt.
6. Creating and Executing a Debt payoff plan
You need to create a debt pay off plan with different scenarios. So that you can find out how some more savings or a different repayment order will help you to get out of debt faster. When creating a plan, you need to choose one which is comfortable to your attitude. Otherwise, you may not execute it properly.
7. Refrain yourselves from applying for fresh loans
You need to make a vow that you will not be adding any fresh loans, till you come out of all your debts completely. Think for a moment, how you will feel when you become debt free. This will give you a lot of positive energy to come out and stay out of debt.
8. Postpone buying major assets
Buying a property or any other assets need to be postponed till you get out of debt. With your new ownership comes the new, probably large and unpredictable expense. This can make you deviate from your debt pay off plans and at times the consequences could be uncontrollable.
9. You stop using your credit card
There are two groups. One group of people uses the credit cards responsibly. That is they will repay the credit card dues in full when they receive the bill. The other group will pay the minimum amount due and carry forward the balance amount due. If you belong to the second group, you need to stop using credit cards temporarily. Take out and keep your credit cards in the locker. Once your financial situation and buying habits improve, then you can start using your credit cards again.
10. Change your spending habits.
Being in debt obviously means that you have been living beyond your means. The solution is very simple. Spend less than you earn and you will get out of debt soon. You need to change your spending habits. Then only this simple solution will be achievable. If you buy things you don’t need, you’ll soon sell things you need. Don’t save what is left after spending; spend what is left after saving.
11. Involve all your family members
You need to inform all your family members and dependents about your debt status. Then you will be able to take decisions with much more clarity. Moreover, if your family members know about your debt, they will also change their spending habits and support you in getting out of debt faster.
Consider the postage stamp: Its usefulness consists in the ability to stick to one thing till it gets there. Similarly, you need to stick to your debt pay off plan till you get out of it.

Simple tips

Here are some tips for you and your spouse to be on the same wavelength with regards to money:

1. For Singles, Choose Your Life Partner Carefully!  

When you are in love, your heart and hormones often take over the head. While being in love is a fantastic feeling, it can blind you and get you in trouble later due to personality, lifestyle and other differences. Hence it’s advisable to have some time apart on a regular basis to evaluate if your relationship is heading in the right direction.

With regards to money, choose a life partner who has similar goals and values as you. Support and encourage each other as you both work towards financial improvement. When combining finances with your partner, communication and honesty are extremely important.

2. Set Aside Specific Time Once a Week to Sit Down and Discuss Your Finances

By setting aside this special time, you are showing that you are willing to take your financial situation seriously and tackle any challenges together.

As a couple, it is important to face important financial issues like debt, savings, disagreements about spending and investments together. This can be hard to do. After all, dealing with the issues oneself is difficult enough. So it can be even more challenging to do so as a couple due to differences of opinions about money and how it should be handled.

If you are unable to resolve any issues on your own, be prepared to ask for help –from those relatives or friends who have a proven track record of managing and investing their own money well. If privacy is an issue, seek out qualified financial planners or wealth coaches and be prepared to pay for their services. Be very careful of those who give free financial advice as their advice may be biased towards your buying their investment products or services. 

3. Be Flexible and Give Some Leeway to Each Other

While a 50-50 agreement on all important issues may be the ideal arrangement, it may often not be the best one. If one spouse is a slow decision-maker, often good investment opportunities may come and go because one spouse can’t give the green light fast enough. Hence it may be advisable for one spouse to take the lead and become the Financial Controller and the other stays a follower. However, it is very important not to keep the follower spouse in the dark on important financial matters.

4. Share Regular Updates on: Earnings, Spending, Savings and Investments

When you sit down to discuss your finances, break the issues into the above four categories. If you think about it, all of your financial issues can be put into one of these four areas. Once you have broken things down this way, it should be simpler to tackle each topic by taking stock of where you are and where you want to be.

Very often, the easiest method of increasing savings and investments is not by cutting back on spending but by increasing your income. For most couples, the maximum they can reduce expenses is only 10-15% without any major change in lifestyle. Hence it’s advisable to focus your time and effort on Earning More as the potential here is unlimited. By earning more and keeping your lifestyle unchanged, you can easily increase your savings and investments.

5. Agree to Discuss Any Major Purchases Ahead of Time

Most couples will have differing views on how to spend their money. These differences usually can be traced back to each person's Money Personality. Spenders tend to believe and act like money is for the spending, since life is short. Savers will feel that saving for the long-term future is the only prudent path.

One simple thing you can do is to agree that you will discuss any major purchase with each other ahead of time. What constitutes a "major purchase" will vary from couple to couple. This is a figure for you to decide. My suggestion is to stick to a figure (RM100, RM500, etc.) and agree to discuss with each other any purchases in advance that exceed this amount.

6. Set and Focus on Your Short (<1 year) and Medium Term (<3 year) Goals

The two most important lifetime goals for most families would be having sufficient funds for their children’s college education and their own retirement. While it’s good to have a rough idea where you should be money-wise 10-20 years later, it’s more important to focus on getting your short and medium term goals right. If you can accomplish 80-90% of your short and medium term goals, your long term goals will automatically fall into place.

For example, an easy and a “once and for all” method to take care of the funding for your children’s college education would be via property investments. You just  need to invest in a medium cost apartment in the RM150,000 price range in a good and easy to rent out (< 2 months) location the year they are born. If you qualify to get a 90% loan, all you need to come up upfront is approximately RM15,000. For simplicity, we shall assume that your rentals are sufficient to service your monthly installments. Eighteen years later, the apartment could have doubled in value to around RM300,000 and your outstanding loan of RM135,000 would have reduced by 75% to approximately RM35,000.

You can later decide to sell off or re-finance the apartment and use the funds for your children’s higher education. I believe this method makes a lot more sense than saving a certain amount every month and investing into some investment funds and then praying very hard that the funds do well 18 years later. How well the funds do ultimately depends on how well the fund manager performs and market conditions, both of which are not within your control. On the other hand for properties, I dare say that it’s almost a sure thing as long as the right property in a well established and easy to rent out location is chosen.

Even for your own retirement funding, you can also do likewise by investing in one property every few years.

Being on the same page about money is a cornerstone of any healthy relationship. By following these money management tips, you will have a much happier married life. Often, the biggest cause of disagreements and quarrels amongst couples is money and you will be able to avoid them.

If you have any comments on this article, please email to me at achievers88@yahoo.com. I would highly recommend that you sign up at our moderated getrichbook egroups at:

Tips Pasaran Saham

Biasanya ungkapan ‘apa yang naik pasti akan turun’ ini digunakan untuk menerangkan graviti, tetapi ia juga boleh digunakan untuk menggambarkan kitaran ekonomi. Ekonomi tidak berada di satu garisan lurus, sebaliknya ia berkembang, merudum ke dalam kemelesetan dan kemudiannya mula pulih semula yang membawa kepada pengembangan berikutnya. Kitaran ekonomi dipacu oleh pelbagai faktor seperti kitaran kredit, gelembung aset, demografi dan penemuan ulung teknologi.

Sebagai contohnya, ekonomi Malaysia mengalami kemelesetan teruk pada tahun 1998 ekoran krisis kewangan Asia. Setelah pulih pada tahun 1999 dan 2000, ekonomi Malaysia perlahan semula pada tahun 2001 disebabkan kemerosotan ekonomi global berikutan penguncupan teknologi yang diterajui oleh Amerika Syarikat (AS).

Dalam kemelesetan ekonomi global tahun 2009 baru-baru ini, ekonomi Malaysia menguncup sebanyak 1.7 peratus kerana eksport dijejaskan oleh penurunan ekonomi AS dan ekonomi-ekonomi utama lain dalam suasana keadaan kredit yang ketat dan pasaran kerja yang lemah.

Pada umumnya, istilah kitaran ekonomi (atau kitaran perniagaan) merujuk kepada turun naik dalam aktiviti ekonomi di sekitar arah aliran pertumbuhan jangka panjang, dan secara tipikalnya melibatkan peralihan di antara tempoh pertumbuhan yang agak pesat (lonjakan atau lambungan) dan tempoh penurunan relatif (kemerosotan atau kemelesetan).

Kitaran ekonomi yang tipikal mempunyai lima fasa.

1. Pemulihan permulaan

Fasa pemulihan permulaan, yang biasanya merupakan fasa pendek selama beberapa bulan, menandakan tempoh apabila ekonomi mula-mula pulih daripada kemelesetan atau kelembapan. Selalunya terdapat inisiatif rangsangan kerajaan yang dilaksanakan seperti perbelanjaan rangsangan dan/atau kadar faedah yang rendah. Keyakinan perniagaan semakin meningkat dan inventori mula dibina semula. Namun, dengan kadar pengangguran yang masih lagi tinggi, keyakinan pengguna mungkin masih rendah.

2. Lonjakan awal

Ini merupakan fasa yang paling sihat dalam kitaran ekonomi kerana pertumbuhan boleh jadi teguh tetapi tidak terlalu pesat atau inflasi tidak lebih tinggi. Fasa ini biasanya berlanjutan selama satu tahun hingga beberapa tahun asalkan pertumbuhan tidak terlalu pesat dan pada kadar yang mampan. Dalam tempoh ini, pembinaan semula inventori yang kita saksikan dalam tempoh pemulihan permulaan membawa kepada aktiviti pengambilan pekerja yang lebih rancak oleh firma-firma dan oleh sebab pengupah meningkat, keyakinan pengguna juga meningkat. Ini pula membawa kepada jualan yang kukuh. Bagi menampung peningkatan permintaan barangan dan perkhidmatan mereka, perniagaan melabur untuk mengembangkan keupayaan.

3. Lonjakan lambat

Ekonomi kini beroperasi pada keupayaan penuh dan menghadapi bahaya akan menjadi terlalu rancak/pesat. Keyakinan adalah tinggi di kalangan pengguna dan perniagaan, dan pengangguran adalah pada paras yang sangat rendah. Inflasi semakin meningkat dan upah bertambah tinggi kerana berlaku kekurangan tenaga pekerja. Untuk memerangi kenaikan inflasi, bank-bank pusat menaikkan kadar faedah.

4. Perlahan

Ekonomi menjadi perlahan, biasanya akibat kadar faedah yang lebih tinggi. Keyakinan perniagaan mula goyah, dan firma mula mengurangkan inventori mereka, sekali gus memberi kesan tidak langsung terhadap pengangguran dan perbelanjaan sektor swasta.

5. Kemelesetan

Kemelesetan secara konvensionalnya ditakrifkan sebagai pertumbuhan KDNK negatif selama dua sukuan berturut-turut. Dalam fasa ini, selalunya terdapat kemerosotan inventori yang besar dan penurunan dalam pelaburan perniagaan. Pengangguran boleh meningkat dengan cepat, sekali gus menekan inflasi turun. Perbelanjaan pengguna untuk barang-barang tahan lama merosot. Dalam kemelesetan teruk, sistem kewangan mungkin tertekan oleh hutang lapuk, lantas membuatkan bank-bank berhati-hati memberi pinjaman.

Oleh sebab setiap fasa kitaran ekonomi melibatkan dinamik yang berbeza – kadar inflasi, keyakinan pengguna dan perniagaan, kadar penggunaan keupayaan, kadar pengangguran dan keberuntungan korporat yang berbeza-beza – maka fasa kitaran ekonomi boleh memberi kesan yang besar kepada bagaimana sektor ekonomi yang berbeza dan pelbagai bahagian pasaran modal mencatatkan prestasi. Prestasi unit amanah akan dipengaruhi sewajarnya, bergantung pada aset dan sektor di mana pelbagai dana dilaburkan.

Peringatan

“Ramalan adalah sukar, terutama sekali tentang masa depan.” – Yogi Berra.

Gambaran yang diberikan mengenai kitaran ekonomi yang tipikal dan kesannya ke atas prestasi pasaran mungkin menampakkan bahawa membentuk jangkaan pasaran dalam jangka pendek dan jangka sederhana adalah agak jelas dan mudah. Namun begitu, titik perubahan kitaran ekonomi selalunya sukar diramalkan. Fasa-fasa kitaran ekonomi yang berlainan mungkin berbeza-beza dari segi tempoh dan amplitudnya. Kemelesetan mungkin teruk (misalnya, kemelesetan tahun 1930-an dan awal 1980-an) atau ia mungkin tidak berpanjangan dengan hanya penurunan kecil dalam pengeluaran dan peningkatan sederhana dalam pengangguran. Pelabur yang berhati-hati juga perlu ingat bahawa urutan pelbagai fasa kitaran ekonomi adalah tidak tetap. Fasa tertentu dalam kitaran ekonomi mungkin tidak berlaku dan fasa sebelumnya juga mungkin terbalik.

Disebabkan oleh sukarnya menetapkan masa yang sesuai untuk memasuki pasaran secara tepat, terdapat beberapa peraturan yang boleh memberi faedah kepada portfolio pelabur dalam jangka panjang, serta mencegah kejadian “melabur semasa harga tinggi dan keluar semasa harga rendah”. Memastikan pempelbagaian portfolio yang secukupnya dengan melabur dalam unit amanah misalnya, merupakan salah satu peraturan tersebut, ataupun dikenali sebagai “tindakan tidak memasukkan semua telur anda di dalam sebuah bakul”.

Melabur untuk jangka panjang juga merupakan satu lagi peraturan baik yang akan menolong menghindari jualan panik semasa pasaran jatuh oleh pelabur yang terpengaruh dengan prestasi jangka pendek pasaran. Pelabur juga boleh mengguna pakai amalan pemurataan kos ringgit, iaitu membeli jumlah ringgit tetap unit amanah atau pelaburan lain secara kerap tanpa menghiraukan harga unit. Dengan kerap melabur dengan jumlah tetap, pelabur boleh mengambil kesempatan ke atas kejatuhan harga pasaran tanpa perlu bimbang tentang bila ia akan berlaku.

Rencana ini disumbangkan oleh Public Mutual Bhd., syarikat unit amanah swasta yang terbesar di Malaysia. Untuk maklumat lanjut, sila dail Talian Perkhidmatan Pelanggan Public Mutual di 03-6207 5000 atau layari www.publicmutual.com.my