Monthly Archives: January 2008

My Child’s College Fund : Skim Simpanan Pendidikan Nasional

At the end of February, I will be a father to my newborn child. My life gets really excited recently and words can’t describe how happy I am to wait for the exhilarating moment. My wife and I have been preparing a lot of things especially our child’s college fund. After I’ve done some research, I think it is for the best to put the college fund in SSPN (Skim Simpanan Pendidikan Nasional). SSPN is backed up by Malaysia government and it offers a lot of benefits to our child’s future.

SSPN fund objective is to introduce a savings scheme with tag ‘Savings Towards Higher Education’ and they provide special financial incentives plus insurance coverage. Their major concern is the lower income people and depositors can put their money as low as RM 20 for saving. SSPN fund is introduced by The National Higher Fund Corporation and their function is to collect deposit, design and offer savings schemes.

Before I decide which is best for me, I create a few choices of college funds provided throughout the country. I also stopped by the CIMB Bank branch to get a consultation for our child’s college saving but there’s not many benefits that they offer. The monthly premium is quite high and it’s not easy for me to commit.

As for my opinion, SSPN is the best choice for children at this moment. I may switch to better saving scheme if my income increases in future.

Further readings >

Skim Simpanan Pendidikan Nasional is a college fund

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The Economist: The End Of Cheap Food

Rising food prices are a threat to many; they also present the world with an enormous opportunityFOR as long as most people can remember, food has been getting cheaper and farming has been in decline. In 1974-2005 food prices on world markets fell by three-quarters in real terms. Food today is so cheap that the West is battling gluttony even as it scrapes piles of half-eaten leftovers into the bin.

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6 reasons why I invest in unit trust @ mutual fund

As a beginner, I was told by my friend (he is a certified financial planner) that unit trust is a good key to ignite the investment engine. I am young and have a small capital, only can dig out a little money from my salary.

The fund that I invest is Public China Ittikal Fund (Shariah Fund). The main objective of this fund I guess is to achieve profit by investing in greater China region. The 1.5 billion approved funds investment is in Hong Kong, Taiwan and other major market around China. PCIF is an aggressive type of fund. What I understand about aggressive fund is it involves great risk that you can get losses very easy, but it will bring significant profit if the price goes up.

Why I choose PCIF?

PCIF is managed by one of the best fund manager in Malaysia. This is main reason why I invest in Public Mutual. Brilliant and good making decision of fund manager builds a confidence in me. I don’t have to worry about my investment because fund manager is doing the best effort to put the pooling fund

China’s rise to superpower. China economy is growing rapidly and experiencing vast changes in its economy. With Olympic 2008 event will occur in Beijing, We’ll be expecting travellers and tourists visit in and a lot of money pour in.

Affordability at it’s best. I can buy a high quality unit trust at cheap and affordable price. PCIF only require RM 1000 for minimum initial investment and minimum RM100 for additional investment. So there’s no rock and stone for me to invest, just an easy straight path to it.

PCIF is easy to take out money. Liquidity is quite high because I can withdraw my money anytime I want. Just fill out the form or phone my agent to sell off my shares. This fund can act as an emergency fund so when it comes to any uncertainties that cost me money, I know where to find it.

PCIF offers diversification. This is what I love about unit trust. It gives you lower risk by widening their investment from shares to bond. While it gives you low risk, PCIF offers me well-balanced portfolio that is high quality and performance, the risk is small and the return is highly potential.

Public Mutual is the number one unit trust company in Malaysia. Until now, there’s no other financial institution can competes with Public Mutual performance and credibility. Public Mutual managing about RM 20.6 billion worth of funds.

Read this : 2008 my early investment in Public Mutual Fund How can I get 80k by just saving RM100 every month.

Other people wrote about unit trust and PCIF


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Zimbabwe Releases $10 Million Bill – Which is Worth USD $4

As the US economy inches ever closer to a recession, it might provide a little perspective to look at what a real economic crisis looks like. Plagued by hyperinflation of over 50,000% a year, Zimbabwe’s central bank recently decided to issue $10 million notes. It looks like Zimbabwe has more miliionaires compares to US.

read more | digg story

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2008 My Early Investment in Public Mutual Fund

Last December 2007, my friend approached me to invest in Public Mutual Unit Trust. I was impressed to hear the return or dividend was surprisingly huge last year. I have heard that institution is well-known in managing fund efficiently. They still hold no.1 favourite unit trust investment in Malaysia for 2007. So I put RM 1000 as an initial investment. The price was at 0.25 sen per share so guest I obtained estimated 4000 shares of PUBLIC CHINA ITTIKAL FUND

My Goal in 2008
Here’s what I think about my investment in 2008 – to flush at least RM1200 for subsequent investment or about RM100 a month. So at the end of the year, I should have RM2200 in it (without adding the interest).

Strategy or action plan to achieve my goal

  • I plan to do automatic direct debit from my PUBLIC BANK saving account. By doing that, I don’t have to worry to save some for investment.
  • My other strategy is to save RM100 per month from my monthly salary. That is about 7% of my salary. It should be no problem for me at all but this option is slow and takes 12 month to achieve my goal.
  • I’ll be expecting to get some consolation from my employer (I’m not entitled to get bonus since I was a contract staff last year). I will channel it into this fund. So, if I got other extra money from other sources, I will put some of it into this investment.
  • I trimmed my existing budget and add RM100 as an investment. I don’t have to worry about how to find an extra money.

I will continue to put RM100 per month or RM1200 per year over the next 10 years. I may not be able to enjoy that RM100 every month for other purpose but I’m glad to see my money grows in a long period of time.

Lastly, I wish that my investment in this fund will run on the right track and I hope that my plans and strategies will perform well to achieve my goal.

Next 6 reasons why I invest in unit trust How can I get 80k by just saving RM100 every month.

What people say about Public Mutual Fund.


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Build up an emergency fund

At 2.00 a.m., I was still planning to build up emergency fund for this year. I afraid that I’m too late to build it up. My fear rose when something bad has happened to my friend and he didn’t has any reserve money for that. His car broke down, he has to pay over RM 1000 to auto mechanic because the radiator needed to be replace. Now, he has no other choice but to utilize credit card.

Therefore, I plan for my emergency fund to prevent any uncertainties come around in future.

Short Term Goal
For this year, I need to set aside at least RM 1000 for emergency fund. To achieve the short term goal, it require RM 90 a month to contribute. That about 4 %-5 % of my monthly salary. (RM3/day)

Mid Term Goal.
After total up my daily expenses, car loan payment, housing loan payment, and other things like credit card debt, student loan, and bills for six months, I need have reserve money at least RM 9000. So I have to save about RM 187.50 per month to complete my goal in four years. (RM6/ day)

I need to achieve my short term goal first and then continue saving for mid term goal.

Long Term Goal
After I complete my mid term goal, I will go on with this huge mission – to save RM 60 000. That figure equals to a year salary of my wife and I. This goal is hard to stay on the track because of the big amount plus the cost of living will escalate over the years. My wife and I will do our best to achieve this goal. This goal requires me to drop RM 300 a month in 12 years (If 8% interest compounded). (RM10/day)

I’m thinking several reasons why I need seriously to build up emergency fund plan in my life:

  • Unexpected event happens and it will cost me a lot of money. What if lighting strikes my house and damages all home applications in my house? I will have a financial distortion that month.
  • Act as a burden relief. I already have many debts surround me – 2 car loans, a housing loan, credit card, and student loan. I don’t want to add up any figures if something big happens.
  • Can be a cushion to my budget. If my refrigerator happens to be damaged and needed to repair. I don’t have to add up to my monthly budget.
  • If I get fired or lost my job. I do really need the financial backup if I lost my job and waiting for new job to land. That’s why I need backup money equivalent to 6 months of expenses.

Remember, emergency fund is only to use when only it is emergency. Do not use it as a car down payment or resource for shopping spree. Only use when emergency happens!!

Learn more about build up an emergency fund. Learn this. Or read this.

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90% of World Bank Aid Money Consumed By Corruption

Corruption is an endemic problem in bank projects, swallowing unknown but significant chunks from its $30 billion-plus annual portfolio. No less a problem has been the bank staff’s ferocious resistance to anything that might stand in the way of its lending ever more money to projects run by the same governments that tolerate this malfeasance.

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4 things American Gangster taught me about money

From my point of view, this is the story of the businessman with brilliant mind. Frank Lucas is the person who knows strategies and actions of running operation in efficient and silent way. For me, Frank Lucas has a power to build his business kingdom and becomes leading crime organization of the underworld.

4 things American Gangster has taught me about money >

Cut the middle man, find the original resource directly.
Bumpy told Frank Lucas that deal straight with the resource by cutting down the middle man, can make .He sees opportunity; drugs are very economical in Vietnam. What we can learn here is buy in bulk, sell it small. Your business will surely make a profit.

Slash down the price, lower than other players.
Frank Lucas believes the price controls everything. The price means a lot to average consumers. So if we can offer competitive price with high quality product, we will gain market share and our business also achieves enormous profit.

Monopoly is good for our business, bad for others.
When Blue Magic hit the market, people started buying it like crazy. Drugs are 100 % pure, at a very cheap price. Frank Lucas gave no chance to the competitors at all. As a result, his enemy grew up in numbers and put his family in jeopardy. I don’t know how to explain this, see the definition of Monopoly.

Selling drugs is one of the ways of getting rich very quickly.
But of course, it’s illegal. I don’t have to explain this. If you watch this movie, there’re scenes people suffering and dying because of their craving addiction. You’re getting richer while people experiences painful torment from using your product. So stop selling all those things.

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12 Lessons from Business Masters

Here is an wonderful collection of 12 simple but vital business lessons from the world’s great business success stories, including Warren Buffet, Richard Branson, John D Rockefeller, Jack Welch, Steve Jobs and many more.

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Disposable Income, How to increase it

Disposable Income does have a significant influence. Ok, I agree. Even if your income is six figures but your debt just as equal as your income, it only brings trouble to your financial health.

Andrew Beattie mentioned 4 ways to increase my disposable income.


1. Get Raise / a second job. “Working two jobs in tandem can be physically and mentally draining, but it will bring more money in when you need it.”

At this moment, the only way I can bring more money to home is to work overtime at my office as a second job replacement. My employer pays me decent money for overtime. A second job doesn’t worth it for me. (RM 15.00 x one hour plus 12.50 meal allowance). I get double when Saturday and triple if I work on Sunday.

2. Start a Business. “Much like a raise or second job, running a business will you more demands on your time and require more effort”

My wife and I have a plan to open an online store at ebay.com.my and lelong.com.my. It is small and legitimate way to boost my income. We plan to sell miniature items that I can get easily in bulks, back at my wife’s hometown, Kota Bharu.

3. Investing Income. “Investing is a great way to increase your disposable income in the long run, but it won’t do wonders for your immediate situation”

I already invested some of my money into unit trust fund investment, PUBLIC CHINA ITTIKAL FUND. If my calculations are correct, I will get about RM86,248 when I’m at 40 just by saving RM100 per month.

4. Spend Less. “The best way to increase your disposable income is to protect the money you earn by spending less.”

I have to sacrifice my interest of buying DVDs and luxury clothes in order to achieve one of my goals (spend less and less). Other unnecessary things are dining out, go to cinema, and ASTRO TV subscription.

Conclusion ? “If you know how to spend less than you get, then you have the philosopher’s stone.” Benjamin Franklin.

Read Full Article here.

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Top 20 Internet Millionaires Under 30


Do you know that the internet is the greatest monetary equalizer? You don’t have to be an old tech savvy, computer geek, SEO specialist, first-world-straight-As genius just to be rich online. As long as you have a reliable computer, internet connection and a brilliant idea; even young kids can retire young and rich! read more | digg story

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Nearly 90,000 Mortgage Jobs Eliminated in 2007

More than 86,000 mortgage jobs were cut in 2007 because of the weakening real estate market, according to a new report released Monday. Countrywide shed the most jobs in the mortgage disaster; California was hit the hardest; more cuts expected.
read more | digg story

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2007 Malaysia Consumer Confidence.


Malaysian consumers 5th most confident in Asia Pacific.

MasterCard Worldwide Index of Consumer Confidence has conducted survey somemewhere in October and involved 5,411 consumers across 13 key Asia-Pacific markets.

Ten out of 13 Asia-Pacific market signalled an increased in consumer confidence level. Malaysian consumers are the 5th most confident.

Why Malaysia is at no.5? Malaysian people is likely to spending rather than saving, which is good for economy growth..hmm? | Malaysian consumers are most optimistic about their income | Bursa Malaysia was well performed in 2007, rise by 32%. Yes!Yes! |

How did they measure ? They measure by asking this questions below.

  1. Current business conditions

  2. Business conditions for the next six months

  3. Current employment conditions

  4. Employment conditions for the next six months

  5. Total family income for the next six months.

Conclusion? It shows that Malaysians average household income shows an improvement and the people satisfied with the market price. Read this article.

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2008 Malaysia Economy Prediction

Malaysian Economy will remain strong according to AmInvestment.

Despite the slipping growth in several major economies, Malaysia will remain strong, annual GDP growth of 6.5%. Giant economies – US, EU, JAPAN will go down a little, Malaysia will go up a little.


What are the factors?

Rise of the inflation in 2008. The inflation rate will unlikely rise at 3 %
AmInvestment Prediction : 2.8 %
Why this happens?

  • Rise in fuel price. 30-40 sen << May be in the beginning of March or earlier. This will hurt the people’s pocket money deeply.
  • Rise in toll fares. Damn, they make the money out of nothing. It’s like Highwayman in The West. Just give us a free pass.
  • Rise in other commodity prices. Cooking oil, Beef, Chicken, Grain, and other.

The salary raise of public servant and changes in EPF policy can be as a relief to fight inflation.

Read the full story here.

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Top 10 Obscure Google Search Tricks

When it comes to the Google search box, you already know the tricks: like searching for exact phrases in quotes like “so say we all” or searching a single site using site:lifehacker.com gmail. But there are many more oblique, clever, and lesser-known search recipes and operators that work from that unassuming little text box.

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Harvard to Include More Middle Class and Poor Students

Class division has been problematic at points throughout the history of America’s elite colleges. Particularly within the sanctuaries of Harvard, Yale and Princeton, there have been ingrained traditions of snobbery and exclusion that often had little to do with money and could be far more subtle and insidious.

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