DianaTan.net

Depositors will be getting higher returns for their savings as banks raise interest rates for fixed deposits (FD) in tandem with the rise in lending rates. In a telephone survey, StarBiz found that most banking groups, with the exception of EON Capital Bhd, and Alliance Financial Group Bhd (AFG), had already increased their FD rates by about 0.25% yesterday. Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd, RHB Capital Bhd and Affin Holdings Bhd have also upped their savings rates.

In general, a rising interest rate environment will bode well for banks with a low exposure to fixed-rate loans and a low proportion of current accounts and saving accounts (CASA) and alternative deposits. According to ECM Libra, among banking stocks, AFG would have the greatest potential for earnings accretion due to its high proportion of variable rate loans at 84% as well as high proportion of CASA at 37%. “We believe key beneficiaries include AFG, CIMB, Maybank and RHB Capital due to a combination of high exposure to floating-rate loans (average around 70%) and large pool of CASA deposits (average around 30%),” TA said.

The Kuala Lumpur Interbank Offer Rates (Klibor), which serves as the benchmark rates for interbank lending and borrowing activities, has also increased by 20 to 25 basis points across the board since March 4. Hong Leong Bank Bhd chief operating officer Kua Wei Jin said banks would have to borrow at higher rates from the interbank market if there was a hike in OPR.

“The FD, being one of the sources for banks to fund their loans, will also go up when the Klibor or OPR increases,” he said. Nevertheless, Citibank Bhd consumer bank treasurer Lee Chet Leng noted that FD rates were not linked one-to-one to Klibor as they were often driven by different factors. “FD rates are a reflection of market-based factors such as Klibor, the competitive and regulatory environment and the desire for banks to achieve a particular nature of funding mix,” Lee said.

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.

Penang’s current chief minister, Lim Guan Eng, came to my church to reassure us of the safety of the churches in Penang following the attacks in 4 churches in KL over the “Allah” issue. He came for the 9:00 am service and read out the sermon on the Mount and 1 Corinthians 13 on Love. It was recorded on video and when I came for the 11:00 am service, it was shown to us. He also went to The Cathedral of the Holy Spirit to reassure the parishers there and then went off to another church in Prai, Butterworth. Today’s message on Love and Forgiveness wasn’t co-incidental. It was divinely planned and we all had a good time hearing Pastor Yeoh Guan Hock preach and sing. With such care and immediate response shown by the Penang Government, I hope Lim Guan Eng will continue to helm the Penang Government in the next general election.

2009 brought many fond memories, some with good news, some not so good news. It was also a good year working at home with some travels to meet clients. It also marked the passing away of Michael Jackson on 25th June. Last night, I was at Penang Sports Club Dinner And Dance to usher in the new year and stayed for the countdown. We sang Auld Lang Syne just before the stroke of midnight and when 2010 came, tons of colourful baloons were let down with the tiny ‘pop’ sound by pulling the string. As a contractor for Penang Sports Club in building 4 tennis courts, we had to buy the tickets and invited a relative and his friend along. I cannot imagine now is 2010; time flies so fast and before you know it, it is the end of another year. 2008 came and we watched Beijing Olympics on Astro, then came 2009 and now it is 2010. Wow, we should live for the moment and enjoy every precious time and day.

I was googling around for some information on Lasik which is a type of refractive surgery for correcting myopia, hyperopia, and astigmatism. LASIK is performed by ophthalmologists using a laser. The good thing about Lasik is that it can reduce or eliminate the need for glasses or contact lenses.

You might also like to know that Lasik is the most often performed surgery in the US. Lasik vision recovery can be as little as a few hours, but most see well in about a day or two and normally has no pain. US Lasik results data is available at http://www.usaeyes.org/lasik/faq/lasik-results-1.htm while General Lasik information and surgery video is available at http://www.usaeyes.org/lasik/faq/lasik.htm

Stahl Eye Center has been serving patients for more than 35 years. The Stahl Eye Center doctors’ patient outcomes have been independently verified by nonprofit Lasik patient advocacy USAEyes to meet or exceed the national norms for Lasik results. Fewer than 100 doctors nationwide have attained this certification. Stahl Eye Center doctors are graduates from top universities such as UCLA, John Hopkins and Yale.

If I have the excess cash, who knows, I might just go for a Lasik surgery as currently I am wearing glasses due to short sightedness or myopia as it is scientifically known. Over here, everyone is wearing glasses and myopia seems to run in my family.

Ok, so I wrote in my previous post that I paid twice for a summon online. Guess what! They have emailed me to refund the extra cash paid to them and will pay to my credit card. So even though the online payment system for paying summons is a little buggy at times and not really updated real time, they do reinburse the money if they have detected double payment. I like this. Honesty is the best policy. This is good customer service. Even though the system is not really stable in terms of updating payments, I kinda of like the refund. I got 4 payments updated correctly out of 5 – so this is still ok. You can still rely on the web site to pay your summons online – removing all the hassle of parking your car, paying for the parking and queuing up just to settle all your summons. What do you think?

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.

Congratulations to all Penang People!!

While Pahang governed by Barisan Nasional for past 52 years is facing bankruptcy, Penang is praised by Global Anti-Corruption watchdog Transparency International for its anti corruption efforts.

What makes Malaysia all of a sudden to be ranked on 47 out 180 countries?
Answer : The Malaysian People made the right choice by denying 2/3 majority enjoyed by Barisan Nasional all these years. It is a well checked balance by Pakatan on Barisan that led to this 47th position.

If Malaysians want to enjoy this, than you should know what to do in the next election!!

Anyway congratulations to Pakatan led by DAP in Penang. In just 18 months CM Lim turned around Penang into corrupt free State. Shame on BN & ex-CM Dr Koh of Gerakan.

“RM 10 billion in losses from corruption per year is a huge sum and there must be greater commitment from the Federal government towards fighting corruption to ensure that 27 million Malaysians can benefit from this RM 10 billion dividend from successfully combating corruption.”

Global anti-corruption watchdog ranks Malaysia 47th least corrupt, praises Penang
By Lee Wei Lian

GEORGE TOWN, Sept 24 – Global corruption watchdog, Transparency International (TI), has ranked Malaysia as the 47th least corrupt nation in the world and commended the island state of Penang for its anti-corruption efforts.

Denmark, New Zealand and Sweden was listed by TI as the top three least corrupt countries as measured by the Corruption Perceptions Index (CPI), which ranks countries in terms of the degree to which businessmen and country analysts perceive corruption to exist among public officials and politicians.

Singapore, Finland, Switzerland, Iceland, Netherlands, Australia and Canada rounded off the top least corrupt countries.

Malaysia came in 47th out of 180 countries in the index, tied with Hungary and Jordan.

The CPI is part of TI’s Global Corruption Report (GCR) 2009 released yesterday.

In its report on Malaysia, TI highlighted the Malaysian practice of the “revolving door” whereby individuals move from government to business, or business to politics, and back again, and estimated that corruption could cost Malaysia as much as RM10 billion a year.

“Significant government participation in the private sector and considerable business participation in politics means that the movement of gatekeepers to players and players to gatekeepers has a negative influence on the concept of checks and balances,” said TI.

“The complexity of the relationships between politics and the public and private sectors means that corruption may take place with impunity. Until drastic action is taken to separate the cosy relationship between government, business and politics, the anti-corruption effort will remain no more than a token gesture,” said TI.

Penang chief minister Lim Guan Eng says he is “humbled” by the recognition by TI and added that he was concerned over the fact that that corruption could cost Malaysia as much as RM10 billion a year – an amount equivalent to 1 or 2 per cent of GDP as pointed out by the GCR when it cited the findings of the special government business facilitation task force Pemudah and the World Bank.

Additional report contents that were of concern to Lim was Malaysia’s per capita spending of only RM5 on anti-corruption efforts and the fact that only about 10 per cent, or just 7,223 potential corruption cases, of the total 71,558 reported between 2000 and 2006 were investigated by the Anti Corruption Agency, the precursor of the Malaysian Anti-Corruption Commission, with a conviction rate of less than one percent.

“The GCR 2009 concluded that this illustration of the Malaysian government’s inaction in the light of the serious corruption allegations, along with its seeming inability to catch the big fish instead focusing on the ‘small fry’, suggests that what anti-corruption efforts exist are mere tokens,” said Lim.

“RM 10 billion in losses from corruption per year is a huge sum and there must be greater commitment from the Federal government towards fighting corruption to ensure that 27 million Malaysians can benefit from this RM 10 billion dividend from successfully combating corruption.”

Lim also today announced that the state has managed to cut about RM36 million or 12 per cent of in operating expenditure this year due to its efforts to curb corruption.

“Transparency International’s recognition of anti-corruption efforts by the Penang state government through CAT (Competency Accountability And Transparency) governance is backed up by savings of nearly 12 per cent of the 2008 Penang state budget of RM 36 million from operating expenditure. This RM 36 million savings has allowed the state government to carry out social programs and implement its people-oriented government,” said Lim.

TI said that the Penang state is the first Malaysian state government to implement the open tender system for government procurement and contracts.
It also recognised the state government’s directive barring administrators and state executive councillors from making any new land applications and efforts to attract professionals to serve on various boards, such as the Penang State Appeals Board.

“On behalf of the Penang state government, we feel humbled by the recognition given by a world renowned body such as Transparency International and would redouble efforts to ensure the anti-corruption reforms are institutionalized and ensure more professionals are appointed to key bodies. Fighting corruption generates savings for the people,” said Lim.

He added that the two local authorities in Penang are expected to save another RM34 million over three years from a “transparent” negotiation over the price of solid waste disposal that reduced the rates agreed to by the previous Barisan Nasional administration by a further 42.4 per cent.

Lim said that the savings would go towards the state government’s “3E” programme to:
“enable” the people with skills and knowledge so that they have an equal opportunity to create wealth,
“empower” them with fundamental rights and basic freedoms, and
“enrich” the people by sharing wealth and economic benefits.