DianaTan.net

Malaysia has the most number of billionaires in South-East Asia with tycoon Tan Sri Robert Kuok leading the pack as the 33rd richest man in the world with a net worth of US$14.5bil (RM48.1bil). The former Sugar King, 86, was among nine Malaysians who made it into the 2010 Forbes List of the World’s Billionaires which listed 1,011 billionaires. He shared the 33rd spot with US-based Microsoft Corp’s Steven Ballmer.

The Kuok Group patriarch, up from his 62nd spot last year, was also named the seventh richest man in Asia. The second-richest billionaire from South-East Asia after Kuok was at a distant 201st spot, from the Philippines.With a net worth of US$7.6bil (RM25.2bil), telecommunications giant Tan Sri Ananda Krishnan was listed as the 89th richest man in the world and the 14th richest in Asia. He shared the 89th spot with three others.

Three other Malaysians made it into the top 300 list of billionaires with IOI Corporation Bhd’s Tan Sri Lee Shin Cheng, 70, ranked 189th with US$4.4bil (RM14.6bil). Hong Leong Group’s Tan Sri Quek Leng Chan and Public Bank’s Tan Sri Teh Hong Piow shared the 277th spot with their US$3.4bil (RM11.3bil). YTL Group executive chairman Tan Sri Yeoh Tiong Lay, 80, and family came in 421st with their US$2.3bil (RM7.6bil) family fortune while 58-year-old Tan Sri Syed Mokhtar Al-Bukhary of the Al-Bukhary Foundation was ranked 655th for his US$1.5bil (RM4.98bil).

Berjaya Group’s Tan Sri Vincent Tan was ranked 828th with US$1.2bil (RM3.98bil) while Tan Sri Tiong Hiew King of Rimbunan Hijau Group was ranked 937th with his US$1bil (RM3.3bil). According to the latest list, Malaysia had the most billionaires in South-East Asia, followed by Indonesia which had seven, Singapore (four), Thailand (three) and the Philippines with two.

The world’s top billionaire is Mexican tycoon Carlo Slim Helu and his family who edged out Microsoft founder Bill Gates with a net worth of US$53.5bil (RM177.6bil). Gates, who held the richest man in the world title for the past 14 years, came in second with US$53bil (RM176bil) while American Warren Buffett was third with US$47bil (RM156bil), the magazine said. The youngest billionaire is Facebook founder Mark Zuckerberg, 25, who is ranked 212th with US$4bil (RM13.3bil).

For the first time, China (including Hong Kong) had the most number of billionaires outside the United States with 89. However, India had 10 of the 25 spots for Asia’s richest, the magazine said. “This year the world’s billionaires have an average net worth of $3.5bil (RM11.6bil), up $500mil (RM1.66bil) in 12 months. “The world has 1,011 10-figure titans, up from 793 a year ago but is still shy of the record 1,125 in 2008.”

According to Forbes, there were 97 new billionaires, of which 62 were from Asia, a vast majority of whom made their own money.“Of the 97 new members, only 16% are from the United States. By contrast, Asia made big gains. The region added 104 moguls and now has just 14 fewer than Europe, thanks to several large public offerings and swelling stock markets,” the report stated. The report also points out that Americans only accounted for 40% of the world’s billionaires and that 13 members of last year’s list had died.

The Employees Provident Fund (EPF) has declared a divide nd of 5.65% for the financial year ended Dec 31, 2009, an increase of 1.15 percentage points over the 4.50% paid out for 2008. The dividend rate was declared on the back of the highest ever net income achieved of RM19.63bil, an increase of 34.82% from the RM14.56bil recorded in the previous year.

“2009 was a significant year for the EPF as it rode out the impact of the global financial crisis. “While the EPF continues to be challenged by the fragile economic environment, our investments nonetheless delivered a sound performance for the year,” chairman Tan Sri Samsudin Osman said in a statement yesterday.

During the year under review, 72.53% of total invest ment was devoted to fixed income instruments in line with EPF’s prudent approach, while 27.05% was in equities and the remainder in property. As of Dec 31, 2009, EPF’s investment portfolio grew 8.55% or RM29.25bil to RM371.26bil from RM342.01bil in 2008.

On prospects for next year, Samsudin said it would be “greatly dependent on the economic performance of the country and internationally.” He said globally, financial markets continued to be volatile and this might have an impact on the price performance of EPF’s investments and future income. “We will continue to focus on our key goals of preserving the capital of our contributors and ensuring a satisfactory real rate of return,” he added.

The Employees Provident Fund (EPF) dividend for 2009 is expected to be higher compared to the 4.5% paid out in the previous year. EPF chairman Tan Sri Samsudin Osman said this was due to the local share market’s stable position and good investment returns. “A meeting on dividend rates will be held this month, while an announcement will be made in March,” he told reporters here yesterday.

Samsudin, who is also Putrajaya Corporation president, had earlier presented prizes to winners of a fishing competition held in conjunction with Federal Territory Day celebrations. In December, EPF announced that it obtained RM5.5bil in profits in the third quarter of last year, an increase of RM696.32mil compared to RM4.8bil in the previous quarter. EPF chief executive officer Tan Sri Azlan Zainol said EPF funds had now increased to RM361.09bil compared with RM353.93bil in the second quarter of last year. For the year 2008, 12 million EPF members received a dividend of 4.5%, which was lower than the 5.8% for 2007

I hope the EPF dividend will be about 6% or more this year and I have also upped my contribution to 50% by signing a form. Previously, the EPF personnel will come to my house to collect the monthly contribution but since late last year, I have sent in the cheques by post. Just like last year, the dividend for 2009 will only be updated in March.

There is a personal injury claims service helping UK citizens claim compensation on a no win no fee basis. This is a good service as you don’t pay if you don’t win in court. It is a win win situation for both parties and creates an encouragement for the company to fight out your case so that you can claim money for personal injury later on. The No win no fee basis will surely attract a lot of customers since it is value for money. There have been cases where insurance companies refuse to pay out compensation for accidents of its clients citing various reasons so that they can keep the money. Therefore you need to engage a good lawyer to fight out your case in court so that you can get your reimbursement for any accidents on the road or even during the course of work or travel.

Susan McCarthy, a financial adviser in Oklahoma City and author of The Value of Money, lists her top four credit card don’ts:

1. Don’t make only the minimum payments. This stretches out your payment and, thanks to the interest, significantly increases your overall cost.

2. Don’t carry too many cards. Multiple cards make it easier to rack up debt because it’s harder to keep track of your spending. Having lots of cards isn’t necessarily bad for your credit, but misusing them is. So limit your plastic to two national cards (store cards often carry higher interest rates) that you manage carefully.

3. Don’t miss payment due dates. Not only will you be hit with a late fee-as high as $39 on some cards-but your interest rate could also jump. Sign up for online banking or pay over the phone if you’re up against the deadline. (You may pay a processing fee, but it will probably be less than the late fee and the possible interest-rate hike.)

4. Don’t take cash advances. These advances generally come with sky-high interest rates and service fees, making them a far too expensive way to get cash. Avoid at all costs.

Berkshire Hathaway chairman and world’s second-richest man Warren Buffett said Tuesday that his $34 billion purchase of Burlington Northern Santa Fe Railway is a bet on America’s future.

It’s a bet, but not just on America. With the investment, Buffett is also betting on China’s rebound and growth, the price of oil going back up, the continued use of coal to make electricity and a higher profile for the nation’s railroads, thanks to a push from the White House.

Buffett already owned 22 percent of the Western U.S. railroad giant; the deal announced Tuesday would give him the entire railroad, the second-largest of the nation’s six major lines. It marked the biggest deal to date for Buffett, who also owns or has large stakes in Coca-Cola, Dairy Queen, Wrigley, Geico and several other companies, including The Washington Post Co., where he is a director and the largest non-family shareholder.

Buffett began buying into Burlington Northern (BNSF) in 2007, and took his position up to 22 percent. His accumulation of BNSF shares coincided with the resurgence of America’s moribund freight rail industry. In the 1970s and ’80s, traffic had dropped so much that companies actually tore up unused tracks, as manufacturers switched their shipping away from railroads to cheaper 18-wheelers. But as fuel prices soared and U.S. demand for Chinese imports surged, railroads experienced a rebirth. Their stock soared.

The 79-year-old Buffett invests for the long-term; meaning, for decades after his death.

“Buffett is making an elephant-sized bet on three things here and all are related,” said Art Hogan, Jefferies managing director. “He thinks the economy in the U.S. is getting better and will continue. He believes that energy prices will continue to rise and that trains will be more productive than trucks in that environment, and third, and most important, he sees Burlington Northern as cheap with a longer-term investment time horizon.”

AGENCIES that help banks market their credit cards have seen the take-up rate for new cards plunging 80 per cent, since the government announced the re-introduction of a RM50 service tax for credit card a week ago.

In a press conference called in Kuala Lumpur yesterday, some 40 credit card agencies, representing 3,000 agents around the country called for the government to either scrap, or review the implementation of the service tax.

“As of now we really cannot estimate the magnitude of the damage that will be done as the months pass by,” Titanium Alliance Sdn Bhd executive director H. K. Tan told reporters.

It is estimated that some 80 per cent of credit card sales agencies may go bankrupt with the ruling, as they fail to get the economies of scale for its promotion work, due to the drop in volume. Credit card agencies spend around RM300 a day for a promotion booth in shopping malls. For exhibitions, credit card agencies can spend up to RM2,000 a day for their booth.

It is understood that the tax is a resurrection from eight years ago. It was scrapped to increase spending among consumers. In 1996, the government introduced the RM50 service tax to curb the extensive use of the payment tool. In 2001 however, the government abolished it.

The agencies which also plan to set up an association to take care of its interests, plan to send a memorandum to the government once details of the service tax are revealed in November by regulator Bank Negara Malaysia.

On an average, an agent can sign up between 40 and 45 new credit card holders in a month. However, only around 25 credit cards are approved in a month.

“We request that if the government insists on going through with the tax, it should only tax for membership renewals and waive it for newly issued credit cards, in a move to help credit card agents like us,” Tan said. A suggestion has also been mooted that the rate of service tax be fixed according to the credit card’s credit line.

At a default rate of 2.5 per cent, the credit card industry in Malaysia is among the healthiest in the world, compared to places like the US, where default rates are as high as 10 per cent and Japan, where default rates are 20 per cent. There are 18 credit card issuers in Malaysia, 16 of which are banks.

Public-listed companies will be required to provide an e-dividend payment system to shareholders by the third quarter of next year. Investors will be given a one-year grace period to provide their bank account number to Bursa Malaysia Depository to enable the dividend payments to be credited directly into their bank accounts. It plans to undertake a series of investors’ awareness programmes to familiarise investors with the benefits of e-dividends.

Stockbroking companies, meanwhile, will by mid-2010 be required to provide e-share payment options for clients to receive and make payments on their share transactions. This way, payments will be credited into bank accounts more quickly and efficiently compared with cheques.

The e-dividends and e-share payment are an intergral part of the initiative to move towards a paperless environment and promote usage of electronic payments in the capital market. These new measures were recently announced by our Prime Minister in the 2010 Budget.

With the paperless share transaction to be put in place next year, I guess those who are IT savvy may start to invest in the stock market and I hope there will be a convenient way to check the share movement online real time. You can also invest online through Public Bank and Maybank internet banking of the banks’ shares from their individual web sites. I have yet to try out this method as I only go for safe money instruments like Fixed Deposits and Government Bonds. But if you have excess money to invest and put away for a few years, then you might consider the above methods to invest online. What do you think?

If you want to grow your money, you need to read Personal Money Magazine for good tips to increase your finances by taking a few simple steps. It is a monthly magazine written by The Edge. Every monthly issue is different and certain months, there may be information on which stocks to buy or the top stocks in Malaysia to look out for. Other months, there may be tips on maximizing your EPF money and let it grow with higher interests rates than banks’ fixed deposits. I find that the magazine is worth investing, unless you frequent book stores like I do and get to read for free.

Sometimes Personal Money magazine features certain personalities who are successful working from home or own a business in Malaysia and we can try to emulate them by learning from their experiences. Other pages may include REITS – Real Estate Investment Trusts or even unit trusts that we can invest in. By the way, unit trusts is a basket of shares that the fund manager manages for you for a fee. This is to relieve you from the tedious round the clock monitoring of the various stocks that you have.

I am a loyal fan of using Citibank Credit Card to redeem my points collected for rewards and gifts. You can either redeem it online or via the telephone. From my experience, the first time I redeem a set of Corelle dinnerware online which arrived 3 days later by fast courier service, I could not log in the second time to redeem again months later. So, I have to call up with a credit card statement ready showing the points limit and validating myself like giving my credit card number, stating if there are supplementary cards or not (which I don’t have as I hold the principal card), mother’s full name, etc. The gifts are attractive, ranging from costume jewellery to Personal Digital Assistants, handphones, flat screen tvs, pens, watches, cooking wares, Corelle table set and much more.

What’s more is that the moment you redeemed online or offline through a phone call, the rewards are sure to arrive within a few days time by courier service – it is that efficient! That is why I continue to purchase things using my Citibank credit card and the points never expire even though you have changed to a new card after expiry of the old one.

I also have 2 HSBC credit cards given free to me without any conditions when I took up a loan from HSBC. And to think that I previously was rejected in my application for HSBC credit cards just to get the welcome gift of beautiful designer bath towels. Comparatively, the rewards offered by HSBC credit cards are not so attractive compared to Citibank credit cards with a wide repertoire to choose from. And the worse credit cards for rewards redemption are CIMB’s Direct Access credit card for graduate that’s free for life. I have both the Visa and Mastercard and the online redemption web site never seem to work for no apparent reason plus the fact that upon expiry, all your points are lost and you have to start all over again for the newly issued credit card!

Citibank Bhd has launched “Instant Citi Rewards”, a points redemption programme that allow customers to purchase everyday items via instant point redemption.

Consumer banking country head Michellina Triwardhany said in a statement that Citibank credit card holders would now be able to use their Citi Rewards points when buying items ranging from household goods to cups of coffee without paying cash.

“Customers can also earn their rewards points faster when they consolidate their daily spend into one card, thus not only earning more points but also having better control of their finances,” she said.

Citibank credit card holders have immediate access to more than 4,500 everyday items via Instant Citi Rewards and at over 160 outlets nationwide.

Among the establishments where Citi Rewards can be redeemed instantly are Senheng/SenQ, Cathay Cineleisure, Samsonite, Coffee Bean & Tree Leaf, Shu Uemura, and TaylorMade Adidas, The Carat Club and the C Club.