Man with less than $ 2 now owns $ 2.5 MILLION business

Man with less than $ 2 now owns $ 2.5 MILLION business

The Straits Times ( Singapore )
Tuesday, 31 December 2013

It takes a bit of doing to rack up a $350 debt to a pal at the tender age of 12 but businessman Bernard Chua managed it all too easily.

Mr Chua, 35, recalls how he used to trade little trinkets and toys in primary school to pay for his favourite toys.

But that unfortunately led to him picking up gambling.

"It was a fast way to get money, and my classmates and I would bet among ourselves on anything from football to number games," he says. "There wasn't anything in black and white, and it was all done through a gentleman's agreement."



Lady Luck shone on him for a few years and Mr Chua grew his pocket money but his fortune turned when he was in Primary 6.

"I made the silly move of doubling my stakes every time I lost money," he says. "And soon the debt snowballed to about $350, which was a lot of money for a boy who got 30 cents a day!"

Mr Chua gave up all the Mask toys and Transformers he had amassed to make good his debt.
"My parents didn't know about it at that time," he says with a laugh.



Gave up gambling
But the lesson was painful enough for him to give up on gambling and focus on something meaningful.

And the natural business acumen he had as a child eventually served him well in adulthood.

Mr Chua graduated from university in 2002, a year after the Sept 11 terror attacks, and just before the Sars epidemic hit.

The banking and finance major could not get a full-time job during the economic downturn but the loss of his grandfather in early 2003 prompted Mr Chua to do what he'd always wanted - go into business.

He set up a moving company, CYC Movers, with $15,000 his parents lent him to buy the first truck and hire staff. Within the first year of business, he had wiped out his savings and was down to less than $2 in the bank.

His then-girlfriend, now wife, Patricia, asked him to keep the ATM slip showing his bank balance then as a reminder of what it is like to have no money.

He persevered and has grown the business many times over: Revenue crossed the $2.5 million mark last year.

Although he devotes most of his time to the company and family, Mr Chua says he still keeps an eye out for good investments.

"You can't stop a businessman from bargain hunting!" he says laughing.

The couple have three children aged four, three and the youngest was born on Dec 11, 2013.
 

Your Facebook posts, tweets could cost you a job

Your Facebook posts, tweets could cost you a job


Recruitment agencies caution job candidates against complaining about their previous company, or posting explicit photos or pictures of alcohol consumption on social media.

By Boo Su-Lyn  December 30, 2013

KUALA LUMPUR, Dec 30 — Recruiter Muslim Nazari thought the 28-year-old applying for the sales manager position seemed too good to be true with his impressive resume and impeccable interview scores.

Just to be certain, Muslim scanned his Facebook profile and found incriminating pictures of the once-promising job candidate using recreational drugs at parties.

The potential hire also used the same social media space to complain about his manager.

 

“He didn’t get the job,” Muslim told The Malay Mail Online in a recent interview.

“Those were the two biggest red flags. We don’t hire people who are involved with illegal activities. It will affect the company’s image.

“We also question the values of people who speak ill of their previous company on social media,” he added. 

Muslim, who is now with another IT company which he declined to name, said his current job requires him to screen all job applicants through social media sites like Facebook and LinkedIn, a social networking site designed specially for professionals.

Although Malaysians generally keep their Facebook settings private, Muslim says he can easily access job candidates’ private Facebook profiles as they are usually connected to someone within his organisation that has about 1,500 employees.

“It’s six degrees of separation,” he said, referring to the theory that says everyone in the world is connected to one another through no more than five or six intermediaries.

Recruitment agencies said recently that Malaysian employers and those around the world are increasingly using Facebook, LinkedIn and microblogging site Twitter to screen job applicants, in order to look at their professional and cultural fit with the organisation.

With Malaysia’s Facebook population now numbering a whopping estimate of 13.3 million users, this could pose potential risks to job hopefuls who tend to live their lives out on Facebook or other social media outlets.

As a result, a racial insult, religious threat, the incessant use of vulgarities or any evidence of inappropriate behaviour on these easily accessible social networking sites, could cost these candidates their dream job.

“Based on what some of our clients have shared with us, there have been incidents where they reconsidered a candidate based on disparaging comments made and inappropriate pictures of heavy drinking and partying uploaded on Facebook and Twitter,” Randstad Malaysia director Jasmin Kaur told The Malay Mail Online in a recent email interview.

“For example, an organisation refused to hire a candidate due to a blog post which included racist comments.

“With personal and professional lives colliding on social media, we encourage all candidates to take greater care in managing their online profile in accordance with their career aspirations and goals,” added the recruitment agency official.

Jasmin said that a potential hire’s background and character can be better gauged through their social media profiles, instead of a formal job interview, where every individual tends to be on his or her best behaviour.

“Social media screening also allows employees to find potential red flags on a candidate such as inappropriate behaviour, negative commentary on past employers or discrepancies in their education qualifications and work history,” she said.

“Turn-offs for employers include inappropriate posts on controversial issues, personal pictures of partying, complaints about employers and co-workers, and evidence of illegal activities like drug consumption,” added Jasmin.

Even grammatical errors and spelling mistakes on a Facebook status update can make all the difference as it speaks of a job candidate’s attention to detail, she said.

Muslim, however, differs when it comes to photos of partying or consumption of alcohol on a job candidate’s Facebook profile. 

“That shouldn’t concern us. It shows that the person has a social life. A lot of employees have a party life,” he said.

Like Jasmin, he also noted that discrepancies between an individual’s resume and Facebook profile could show up in cases where the candidate was terminated from their previous company and did not list it in their CV, but left it on their Facebook profile.

According to Jasmin, a job candidate’s online profile is also particularly important in roles like digital marketing as it would reflect their skills.

As such, recruiters are now cautioning Generation Y — or those in their 20s and early 30s — to be wary of what they post on social media.

“Many have spent their teenage years constantly updating their social media networks on almost all elements of their lives, and may find it more difficult than their older counterparts to distinguish what should be kept personal in order to protect their professional reputation,” said Jasmin.

A survey conducted by online recruitment company JobStreet.com in March showed that 17 per cent of employers screen a job candidate’s social media profiles, like Facebook and Twitter, based on a sample size of 394 employers and 379 employees in Malaysia.

“Since social media like Facebook is used by many, it is not surprising if an employer would search for a candidate’s profile on their own to get a glimpse of who you are outside the confines of a resume, cover letter or interview.

“This is usually done as part of a reference check before hiring someone,” JobStreet.com country manager Chook Yuh Yng told The Malay Mail Online in a recent email interview.

“Employers are looking as to whether or not a candidate presents him or herself professionally online, as a wrong hire will often prove to be costly to an organisation,” she added.

Chook said a job candidate’s values and ethics would be questioned if they often badmouth and criticise others on social media, or if they post provocative and explicit photos. English-language skills would also be evaluated through Facebook posts or tweets.

“Your soft skills, what you write, reflects your capability to communicate to management, clients and colleagues,” she said.

Chook also pointed out that the survey showed that 81 per cent of employers believe social media is an important business tool that can be used to interact with prospective customers.

“It is an extra advantage if job candidates are active or well-rounded on social media and know how to use the platform well,” she said.

Chris Mead, regional director of recruitment company Hays in Malaysia and Singapore, said social networking sites have transformed the recruitment process for both employers and job candidates in Malaysia, and across the globe.

“Platforms such as Facebook, Twitter and LinkedIn now reach over one billion users, with unprecedented levels of private information being publicly available within a click,” Mead told The Malay Mail Online in a recent email interview.

“Employers are looking at candidates’ social media profiles in order to gain greater insights into the candidates they’re considering hiring. That’s why maintaining your online profile is a vital part of career management.

“We advise candidates to think carefully about what they share and where. If it’s something they wouldn’t want a new employer to see, then they shouldn’t post it.

“We also recommend to candidates that their online profile and offline CV match, and to adjust their security settings so only their private network can see their personal information,” he added.

Kelly Services Malaysia managing director Melissa Norman said that recruiters are increasingly using social media to hunt for job candidates, citing Jobvite’s 2013 Social Recruiting Survey.

The US survey showed that 94 per cent of employers across industries are using social media in their recruitment efforts, up from 89 per cent in 2011 and 78 per cent in 2008.

The top three social networks for recruiting this year are LinkedIn (94 per cent), Facebook (65 per cent) and Twitter (55 per cent), according to the survey that was conducted in June among 1,600 recruiting and human resources professionals in the US.

“There was once a mindset that some social platforms were for professional life, and others were for social life, but the reality is, they are beginning to blend,” Norman told The Malay Mail Online in a recent email interview.

“Work colleagues are now in our social networks; and social media is being used in business operations for good times and bad (politics, promotions, and emergencies), and to connect professionals.

“Kelly Services Malaysia is a good example with employment of professionals from across the globe, in particular the UK, US, India, Bangladesh, and others,” added the recruitment specialist.

Recruiters also agreed that recruitment done through social media provides better candidates and saves time as communication is quicker and screening is easier, according to Norman.

“An upside for candidates searching for job opportunities and connecting to future managers and colleagues this way is the familiarity they build even before starting a role,” she said.

Camily David, a recruitment manager in an oil and gas company, said that she uses Facebook and Twitter to screen candidates for senior managerial positions on a case-by-case basis.

“Sometimes, when the candidate goes MIA or doesn’t respond to our calls or emails, and we still have to constantly chase and follow up, then we will do a background check (on social media),”

David told The Malay Mail Online recently, using the acronym for ‘Missing in Action’.

“Always remember that somebody out there in the corporate world is always looking at your profile, and that people with authority have the right to use your social network or social profile against you,” she added.
 


 

4 clever ways to connect with POWERFUL PEOPLE

4 clever ways to connect with POWERFUL PEOPLE



Would you like to have a famous author, prominent entrepreneur, or well-heeled venture capitalist in your network?

Of course. But they almost always appear out of reach. Unless your cousin went to college with Malcolm Gladwell or your dad spent his teens spinning records with Richard Branson, it may seem like there’s no way into their inner circles.

 

Some people try anyway, sending industry leaders “cold call” emails with blithely optimistic requests: Can I buy you a cup of coffee? Could I pick your brain for an hour? Maybe we can schedule lunch? Those messages get ignored, and for good reason: they’re insulting to any successful, busy person.

 

It’s not arrogance that prompts people to decline invitations; it’s the only way they can cope. No one has an hour, a half hour or even 10 minutes to spare on a stranger who doesn’t have the sense to lead with a value proposition. The real question is, what can you offer someone who’s better-known or more famous than you are?

 

Here are four suggestions for how to get noticed:

1. Interview them

You’ve heard a million times that in the Internet era, we’re all media companies and publishers.

 

Leverage that. Asking to interview someone is a little used, but highly effective, strategy in connecting with A-list leaders.

 

You’d be hard-pressed to find any top business executives who’d agree to a half-hour coffee to share career advice with a total stranger.

 

But thanks to the democratization of media, it can be as valuable for them to speak with a blogger as it would a member of the mainstream media.

 

If you want the opportunity to ask targeted questions and learn from the best, start a blog or podcast, and you can rapidly build relationships and become known as a connector and curator.

2. Write about them

In the Internet era, you can often get the attention of industry leaders without even attempting direct contact.

 

When I mentioned “Getting Things Done” guru David Allen in a casual aside in an article, he reached out to me directly with a thank you and follow-up Skype chat.

 

If you consistently retweet someone’s posts, comment on their blogs or mention them in your writing, they’re likely to take notice.

3. Do them a favor

It’s only human to feel impressed when someone makes a special effort for you.

 

Everyone knows you should “give before you get,” but too few professionals realize that with a little ingenuity, they could be cultivating lifelong fans.

 

If you’re following an industry leader’s Twitter feed and they ask a question where you could help — restaurant recommendations, links to relevant research or the like — take the opportunity to respond.

 

They’ll likely be appreciative.

 

Think through other ways you can offer value, too.

 

 I’ve learned powerful lessons from people like Zen Yinger, a North Carolina-based social media consultant who secured a major television interview for me when I was in town on my recent book tour — without my ever having met her in person. You can bet that made an impression.

4. Make yourself interesting

Sometimes the most important part of making a connection is the personal and professional development you’ve already done.

 

Michael Ellsberg, author of “The Education of Millionaires: It’s Not What You Think and It’s Not Too Late,” has written about how he made important business contacts by sharing marketing advice, as he’d developed an expertise in copywriting and direct marketing.

 

He writes:

If you know a lot about vintage wine, or gourmet cooking, or fine tequila, or tango dance, or travel in Latin America or Southeast Asia, or Buddhist meditation and philosophy… or some other interesting, cool, hip, unusual, sexy hobby or interest, it’s very likely you’ll be able to share your gift among people you want to connect with.

 

Successful professionals like meeting compelling new people. But in a noisy world, it’s nearly impossible to stand out. These four strategies can help you connect with the powerful people you want to meet.

- Business Insider

 

A guide to travel insurance – Part 3

December 25, 2013

Factors to consider when getting a policy.

 

By Balkish Rosly
SaveMoney.my has previously explained the types of travel insurance policies; this week we conclude our guide with other factors to consider when getting a policy.

Frequency of travel
Have you established which coverage area you prefer?

Great! So, how long will you be gone for? Two days, Two months, or maybe you travel on a monthly basis?

There are actually two types of frequency that you can choose for your travel insurance plans: Return Trip or Annual Cover.

Return trip basically means that your premium will only cover on the selected days, while annual cover means that you will have get travel protection all year long.

However, most airline companies do not provide the annual cover insurance for their customers.

Here are the difference between major airlines and insurance companies:

Frequency Coverage	Airline Companies	Insurance Companies
One-Way Trip Coverage	Yes	Yes (but very rare) – limited protection coverage
Return Trip Coverage	Yes	Yes
Periodical Coverage (example : 1-3 days Coverage, 20 – 30 days Coverage)	Some	Yes
Annual Coverage	No	Yes

So, which plan should you get?

For most people, the travel insurance provided by airline companies is enough for them.

 But while purchasing the travel insurance right off the website is way easier, it doesn’t necessarily save you money.

For example, a return trip insurance coverage (domestic) will cost you RM18, but you can actually get it cheaper with from an actual insurance company at RM11 (but there might be a RM10 stamp duty).

Moreover, if you travel on a monthly basis (or close to that), you ought to consider purchasing an annual travel insurance plan to save some money.

Here’s why:

Situation A: Ali travels to China once a month for business. As you can see, he can actually save more money by purchasing the annual travel insurance.

Company	Coverage Area	Premium	Cost After 1 Year
ABC Insurance	All Regional Flight	RM34 per return trip	RM456
XYZ Insurance	South East Asia, Cambodia, China, Hong Kong, Macau, Malaysia, Maldives, Myanmar, Taiwan, Thailand, Korea, Australia, New Zealand, Japan, India, Indonesia, Bangladesh, Pakistan, Sri Langka, Vietnam	RM230 Annual	RM230

Travel insurance provider
Now, since you know all about the types of travel insurance, we at SaveMoney.my will move on to where to get it from.

Basically, there are three ways for you to get a travel insurance for you and your family or spouse:

Travel agents Obviously, most (not all) insurance companies provide at least one travel insurance in their services.

However, if you only travel once a year, the normal insurance plan provided by the airline company should be sufficient for you.

However, if you want to have more options (annual coverage, 20 days coverage, etc), then insurance agent is the way to go.

On the other side of the plate, frequent travellers should consider getting an annual travel insurance plan instead of purchasing from the airline company for every flight.

Airline companies Aside from the obvious insurance providers and agents that are easily available in Malaysia, airlines also offer travel insurance for their passengers.

Those who have ever booked a flight online will surely notice the insurance purchase option, and yes, that is indeed a travel insurance.

 However, these insurance are often underwritten by an insurance company and re-sell by the airline company.

BanksLikewise, some banks have branched out to the insurance industry, and part of the products offered are the travel insurance plans.

 But just like the airline companies, much of the insurance products offered by the banks are underwritten by insurance companies.
Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

Guide to mandatory retirement scheme

The Malaysian Reserve

December 23, 2013

Among the remunerations that be ca deducted under the Employees Provident Fund include commissions and wages for study leave.

 

by Hann Liew
PETALING JAYA: Last week, in SaveMoney.my’s guide, we explained about the Employees Provident Fund (EPF) and your responsibilities toward it. This time around, we’re back with more about your contributions to Malaysia’s EPF.

What types of income are included for EPF deductions? In general, all payments which are meant to be wages are accountable in your monthly contribution amount calculation.

These include:
• salary;
• payment for unutilised annual or medical leave;
• bonus;
• allowance (except travelling allowance);
• commission;
• incentive;
• arrears of wages;
• wages for maternity leave;
• wages for study leave;
• wages for half day leave; and
• other payments under services contract or otherwise.
Meanwhile, the fol lowing payments are not liable for EPF contribution:
• service charges;
• overtime payment;
• rewards (in kind);
• retirement benefits;
• retrenchment, temporary and lay-off termination benefits;
• any travelling allowance or the value of any travelling concession;
• payment in lieu of notice of termination of employment; and
• director’s fee.

What is the Rate of Contribution to the EPF
Employees below 55 years of age — For employees earning below RM5,000, the portion of the employee’s contribution is 11% of their monthly salary, while the employer contributes 13%.

For employees who receive wages/ salary exceeding RM5,000, the employee’s contribution of 11% remains, while the employer’s contribution is reduced to 12%.

Employees between 55 years and 75 years of age — For employees who have wages of RM5,000 or below, the employer’s new share contribution rate is 6.5% (an increase of 0.5%).

For employees earning more than RM5,000, the employer’s share contribution remains at 6% subject to the total of the wage.

Voluntary Excess Contributions to the EPF
If you or your employer intends to contribute at a rate which exceeds the Statutory Rate, either you or your employer may do so by giving a notice of your intention to the EPF.

To do so, your employer is required to complete Form KWSP 17 (employer) while you are required to complete Form KWSP 17A (employee).

This new rate will be your new Statutory Rate. Upon receipt of the notification, your employer is required to comply with it, as instructed by the EPF.

How are My Contributions Paid?
Your employer must contribute part of your wages along with the employer’s share to the EPF according to the rates specified under the EPF Act 1991. These contributions must be paid monthly.

To do this, your employer has to deduct part of your wages before they are paid to you.

This deduction, together with the employer’s share, must reach the EPF before the 15th day of the following month; any later than the specified date and they will be fined by the EPF. It is an offence under the EPF Act for your employer not to deduct your wages and not to remit the contributions to the EPF after deduction has been made on your wages.

If your deductable wage is RM2,000 a month:
Net amount to employee after EPF deduction: RM1,780 (ie 100%- 11% = 89% of deductable wage);
Employee Contribution: RM220 (11% of deductable wage);
Employer Contribution: RM260 (13% of deductable wage);
Amount payable to EPF by employer: (RM220 + RM260) = RM480.

So now you are aware of how much you contribute, but what happens with the money?
Part 3 of SaveMoney.my’s guide to the EPF will explain all next week.
Hann Liew is the founder and editor-in-chief of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money.

Health and beauty remain top sectors for year ahead

Report from Bangkok Post dated 20 December 2014 :-

Health and beauty remain top sectors for year ahead
Medical services and beauty care offer the brightest prospects for growth for a fourth straight year in 2014, driven by growing awareness, according to a survey of the University of the Thai Chamber of
Commerce (UTCC).


Growth will also be supported by Thai medical treatment, especially at private hospitals, which are recognised by local and foreign patients for their quality and affordable cost.
 
Medical services and
beauty care top the list of 10 "sunrise" businesses named by 4,400 members polled by UTCC, based on sales, import and export statistics, commercial banks' credit information, capacity utilisation and the
the country's economic prospects. The survey assumes economic growth of 4.5% next year, plus growth in exports (6.5%), domestic consumption (3%), investment (6.9%), industry (5.9%), the farm sector
(2.4%) and inflation (3%). Strong telecom demand, spearheaded by the full roll-out of the third-generation (3G) network, is expected to accelerate the growth of the tech industry.
TV also holds promise with the advent of the digital system, which will drive spending on network expansion and advertising. The rise of social media, meanwhile, is seen boosting growth in event organization activity. Thanavath Phonvichai, UTCC's vice-president for research, said the plastics business is still growing with robust demand for food and drink packaging, while the Asean Economic Community and desire for  higher learning will spur education-related business. Other areas with an outstanding outlook include tourism, chemicals, life insurance, property development and energy. Sluggish sales are predicted for electric fans, printers, mom-and-pop shops, leather, fabric and handicrafts.
      





       

A guide to travel insurance – Part 2

December 20, 2013

 

By Balkish RoslySaveMoney.my began our guide to travel insurance last week by explaining exactly what it is and what it entails. This week, we continue with an explanation of the types of travel insurance policies.

Read on to learn more!

Types of travel insurance
Before you march up to the insurance company or click the “purchase” button on the airline website, you have to first decide which type of plan suits you best. So how do you find out? It depends on the following factors:

1. Coverage area
Planning a holiday? Great! But first of all, where are you heading? From what we can suss out, there are three major coverage areas included in the travel insurance plans:

Domestic The domestic travel insurance cover areas within Malaysia only and generally has the cheapest premium (our research shows this can start from RM11 and above). Basically, the domestic plan will cover the expenses of any accidental or loss that you might experience while travelling within Malaysia. On the other hand, this type of travel insurance sometimes lack the extensive coverage and protection that comes with other bigger coverage areas.

A quick note: Premium means the cost of insurance, i.e. how much you have to pay in order to get the insurance.

Asia Usually, Asia basically means just that – the whole of Asia countries such as China, India, and the slew of Arab countries. However, some insurance companies do tend to separate these countries into South East Asia (or ASEAN) and Asia Pacific region. While it is less comprehensive, this could actually be a good thing – purely because you might just get a cheaper premium if the insurance company split up the region and covers less countries. For example:

Travel insurance company Insurance Name
Coverage Area
Premium Range (RM)
Lonpac
TravelNet (South East Asia)
Malaysia, Singapore, Indonesia, Thailand, Brunei, Philippines, Vietnam, Myanmar, Laos, Cambodia
RM18 To RM125 (VIP)

Lonpac
TravelNet (Asia Pacific)
South East Asia, China, Hong Kong, Macau, Taiwan, Korea, Australia, New Zealand, Japan, India, Bangladesh, Pakistan, Sri Langka
RM26 to RM138 (VIP)
So if you are boarding a plane to say, Thailand, you can actually get a cheaper premium price.

Worldwide Similar to the ‘Asia’ definition, Worldwide also sometimes consists of several categories. The most common that we’ve come across are: Worldwide including USA and Canada (usually comes with a higher premium) and Worldwide excluding USA and Canada. Also remember that the worldwide category tends to cost way more than the Domestic and Asia regions, mainly because it covers more areas on the globe. Basically, when you purchase this type of insurance, you will be protected in all the major countries in the world (lost your luggage in Timbuktu? No problem! You will be compensated by your insurance provider). But obviously this comes with a price, as Worldwide is usually the most expensive option.

Stay tuned next week for SaveMoney.my’s next instalment, as we cover another factor that’s important to selecting your type of travel insurance, as well as detailing where to get them.
Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

More Singaporeans go online to shop for festive gifts

More Singaporeans go online to shop for festive gifts
The most popular countries from which those in Singapore purchase goods include the United States, China, South Korea, Japan and Britain.

By Victoria Barker, Lim Yi Han,
MyPaper | 19-12-13

 

'Tis the season to be jolly - and, typically, to brave the heaving crowds in the malls in order to get all that Christmas shopping done.

However, a small, but growing, number of Singaporeans are eschewing visiting physical stores and heading online instead to do their festive shopping.

One of them is pre-school drama teacher Grace Lim, 30, who has done about 90 per cent of her gift-shopping on the Web.

"I'm too tired to battle the hordes of die-hard shoppers," she said.

Industry players told MyPaper they have been handling more transactions here in the lead-up to Christmas this year compared to the same period previously.

The most popular countries from which those in Singapore purchase goods include the United States, China, South Korea, Japan and Britain.

A United Overseas Bank survey of 500 Singapore residents released yesterday found that 35 per cent of all Christmas shopping is being done online, compared with 28 per cent last year.

Last month, the volume of Speedpost parcels increased by 10 per cent compared to November last year, a SingPost spokesman said. This is on top of an already higher-than-usual volume - between 10 per cent and 20 per cent higher - it usually sees during the year-end holiday season.

The spokesman added: "The availability of (various) payment options and modes of delivery, as well as the flexibility to shop anytime, anywhere, help to spur online shopping."

Logistics provider Fedex Singapore said it expected the first week of this month to be its busiest of the year, with more than 85 million shipments moved globally, a 13 per cent increase compared to last year's busiest week.

Managing director Khoo Seng-Thiam said popular items in inbound shipments include apparel, health supplements, personal consumer electronics and books. He noted that with a relatively strong Singapore dollar this year, "overseas online shopping makes sense".

Online payment website PayPal told MyPaper that Cyber Monday and Black Friday - the day after Thanksgiving - have gained momentum in Asia due to the deep discounts offered by major brands.

Singapore purchases from US merchants surged by 21 per cent from 2011 to last year for these days, with the trend expected to continue this year, said Mr Lawrence Chan, PayPal's general manager and vice-president of Asia-Pacific merchant services. Figures for this year were unavailable .

But some, like marketing manager Michelle Sim, 29, still prefer being hands-on when it comes to festive shopping.

She said: "I like to be able to actually check for things like size and quality before I buy."

A guide to travel insurance

A guide to travel insurance - Part 1

December 18, 2013

Let’s face it, while danger and accidents can happen in every corner in the world, even the slightest mishap can ruin your perfect holiday.

 

By Balkish RoslyFor all the joy and excitement that a trip holds – new places, new faces, new food! – there is also the potential for disaster: lost luggage, flight delays, and – uh-oh – missing passport…

Let’s face it, while danger and accidents can happen in every corner in the world, even the slightest mishap can ruin your perfect holiday.

Additionally, the horror of these scenarios could be magnified when experienced overseas, especially in a land with a foreign language. H

owever, one of the ways to protect yourself when you are on a trip aboard is by getting a travel insurance policy. SaveMoney.my explains what this consists of.

What is travel insurance and its coverage?
Just like health insurance and their protection plans, travel insurance also provides you with a protection plan for any hiccups that you might experience during your trip. If any accidents do occur while you are away from home, your travel insurance will ensure that you will be compensated accordingly.

What sort of coverage / protection can you expect from a travel insurance?
Ideally, a travel insurance should protect you in covering both medical concerns as well as travel issues. Some of the coverage that you should expect to be in the product disclosure sheet are as follows:
Personal Accident
Medical Expenses
Loss of Luggage & Personal Effects
Loss of Travel Documents
Baggage Delay
Travel Delay
Missed Departure
Flight Overbooked
Hijack Inconvenience
Travel Cancellation
Loss of Money / Valuables
…and other types of coverage as well; go through the list carefully and take note of any particular areas of concern for you, as your needs will vary based on your destination and conditions.

What conditions are NOT covered by travel insurance
Most often than not, insurance companies steer clear of high-risk and unpredictable situations such as war, destruction of goods caused by radiation, as well as high-risk sports activities. So if you are a journalist / humanitarian covering a report in country torn by war, or if perhaps you may travel to take part in a high-risk skiing (or other equally dangerous sport) competition, then you should probably be aware that a travel insurance policy might be redundant in your situation.

Here are other examples that might not be covered in a travel insurance policy:

Declared or undeclared war or any act of war, invasion, act of foreign enemy, and other war terms
Loss or destruction of goods due to radiation

Suicide / Self harm / or any intentional acts by the insured person that provoked homicide or assault

The Insured Person acting as a law enforcement officer, emergency medical or fire service personnel, civil defense personnel or military personnel of any country or international authority, whether full-time service or as a volunteer.

The Insured Person engaging in, practising for, or taking part in training in any speed contest, any professional competition or sports, and participating in Hazardous Adventure.

Now that you’ve got a better idea of what Travel Insurance does (and doesn’t) entail, and if you’re keen to get some, stay tuned next week for SaveMoney.my’s next instalment of our guide, where we’ll be discussing your options to do so!

Balkish Rosly is Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

Currency of the future or asset bubble? Bitcoin's critics get louder

Currency of the future or asset bubble? Bitcoin's critics get louder


Bitcoin tokens in Sandy, Utah on April 3, 2013. Once the preserve of cyber geeks or of dodgy traders, the virtual currency bitcoin can now not only be used to buy goods online but also pay for a degree at the University of Nicosia

PARIS (AFP) - Once the preserve of cyber geeks or of dodgy traders, the virtual currency bitcoin can now not only be used to buy goods online but also pay for a degree at the University of Nicosia.

Yet the newfound popularity of the currency, which was worth almost nothing until April 2011 and which now trades at around US$1,000 (S$1,254), may well prove its undoing.

Market watchers and regulators are at odds over how the bitcoin should be handled, but as the currency gains prominence, voices warning against its use are getting louder.

France's central bank has slapped it down as "highly speculative" while China's said it should not be used as a currency and banned its banks from providing services and products related to bitcoin.

Financial obstacles to face before turning 30

December 13, 2013

You don't need to have your entire future planned, but you can make some wise decisions to set the foundation before you turn 30.

 

By Michelle Brohier
Entering the working world and handling the salary you receive can be overwhelming, and when you’re new to the concept of a wage; the salary looks like a bigger allowance for you to spend with.
But if you continue to have that mindset throughout the years, you may face serious money problems in future. While the way you handle your money is your prerogative, it still pays to deal with it properly while you’re young. You don’t need to have your entire future planned, but you can make some wise decisions to set the foundation before you turn 30.

Find yourself while finding money
Not everyone knows who they want to be, not even til their dying days sometimes. Being in your 20s often gives you the perfect time and circumstances to grow and learn about yourself no matter the path you take, as long as you are conscious of the decisions you’re making. But just because you’re keen on discovering who you are, that doesn’t mean money should take a back seat. You can still find yourself by taking on a job of your interest, or even a side job as you pursue your own passions. You should earn enough to let you live comfortably without struggling to pay for necessities.

Work on your student loans
Student loans are the bane of most young graduates’ existence as not everyone can pay them off in time to make way for home and car loans, but that doesn’t mean you should feel discouraged. Try to get ahead by paying more than the monthly minimum amount necessary as this helps stave off more interest from accumulating. Keep a tab on your loans and be sure that you are paying enough to cover more than the interest, or else you’ll be paying for your loan the rest of your life.

Maintain your EPF
When you get a job, make sure that the company you are working for is contributing a part of your salary to the Employment Provident Fund (EPF). There are a few young employees who do not see the importance of this fund as it eats into their full salary and they need all the money for their current needs. But with more people living to a ripe old age without a sufficient retirement pot, even a small contribution to this fund could be the security net you need for your future, so keep contributing as much as you can. Also ensure your employer is fulfilling his responsibility in contributing the requisite amount as well.

Work on your credit score
If you were a little credit happy in the past and you’re still trying to sort through your debt, now’s the time to fix those mistakes. It’s important to get your credit score in order as you’re going to need it for most financial plans you may have in the future.

Making an investment without your parents’ aid
Whether it’s a car or a house, if you have enough money to invest in something, go for it. The journey and process of making such large purchases on your own will be a good experience that teaches you to commit to your money and how to deal with necessary payments accordingly, and it’s an experience you can carry throughout your years. Do your research before making any investment to ensure the investment is legitimate; that the car you’re purchasing is in good shape or that the deal on the house really is a good one. Of course, it’s also vital that you are sure you can afford the mortgage, loan or any continuous payments you will be saddled with henceforth.

You may have made some financial mistakes along the way, but keep learning and keep growing. There may be a number of obstacles to face when you’re young and you may feel unprepared for them all, but tackling them head on will teach you what you need to know. So that when you turn 30, you can at least say you’ve gained enough experience to face the next phase of your life.

This was brought you by MICHELLE BROHIER from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Getting to know lifestyle inflation

November 29, 2013

Lifestyle inflation is an ever present problem plaguing our society today. What is it and how do you avoid it? SaveMoney.my explains.

 

By Eugene Chua

I’ve heard of Inflation… but what is lifestyle inflation!?

When a person advances into a more profitable position at work, his or her monthly expenses typically rise correspondingly. This is a phenomenon known as lifestyle inflation.

Just like economic inflation, while healthy in controlled amounts, lifestyle inflation can present a problem when left unchecked, because even though you might still be able to pay your bills, living pay cheque to pay cheque limits your ability to accumulate wealth.

Most of you can probably recall that as a high school student or even in college or university, we managed to live on almost no money at all.

Our only real ‘source of income’ was probably through allowance given by our parents and that probably wasn’t a whole lot!. Still, life was pretty good and while sacrifices had to be made because of limited funds, life went on.

With greater income, comes greater spending ability
Most people will spend more money if they have more money to spend.

Perhaps the first sniff you will ever get of lifestyle inflation is when you find your first part time job.

That extra couple of hundred bucks a month from working at TGI Fridays during summer break opens a whole new world of options in terms of monetary freedom. Suddenly things seem so much more affordable now that you have more cash at your disposal.

Consider a graduate who, just embarking on his career, shares an apartment with some friends for RM500 a month. A couple years later, his salary has increased, so he finds a “better” apartment for RM2,200 a month.

The old apartment was adequate – good condition, great location and well equipped but he reasons that he rather have some privacy and also, the new one is located in a more exclusive area.

Despite the fact that the original living arrangement was fine, he traded up to a more expensive apartment – not necessarily because he needed to, but because he could.

Why it happens
Entitlement
“I bust my butt off to earn my money! I deserve to spend it on the things I want!”

You’ve worked hard for your money so you feel justified in splurging and treating yourself to better things. While this is not always a bad thing, rewarding yourself too much for your hard work can be detrimental to your financial health now and in the future.

Peer Pressure
It’s not uncommon for people to feel like they have to keep up with their friends’ and business associates’ buying habits. If everyone drives a BMW to the office, for example, you might feel compelled or pressured to buy one as well, even if your trusty old Saga gets the job done just fine just so you don’t feel “left behind”.

The problem with lifestyle inflation is that you get used to the things you have.  So, as you get more things, you get used to those things too, and having more things becomes your new “normal”.

Numerous studies have shown that people settle into the same level of happiness after the initial excitement of buying new things wears off, so no matter how many things you have (provided you have what you need), you always settle into the same level of happiness eventually.

Am I suffering from lifestyle inflation?
Some possible signs that you may be suffering from lifestyle inflation:
1. You always have a balance on your credit card.
2. You live pay cheque to pay cheque
3. You feel the need to get the latest device or consumer product when the item it replaces is still working perfectly
4. You take on debt to buy consumer products
5. You associate spending with happiness, but normally don’t feel any lasting happiness after a purchase

Managing lifestyle inflation
While some level of lifestyle inflation may be unavoidable, remember that every spending decision you make today affects your financial situation tomorrow.

Here are some tips on how to manage it:

Be conscious of of it’s presence

Keep a budget, watch for examples of where your regular spending has gone up and review it before deciding whether it should be changed.

Splurge with enjoyable activities, not things

Reward yourself by doing activities such as playing a video game, taking a walk in the park or reading a book rather than choosing to buy something new.

Buy an affordable house. For most people their largest monthly expense is housing. Affordable does not mean what the bank will let you borrow! By simply buying the biggest house possible, you’re also inflating many other things.

Be realistic about cars Probably the second largest monthly expense for many. Know that a new luxury car means more than just higher monthly payments. It means more expensive insurance, maintenance costs, repairs and may even required premium-grade fuel. The cost of RON97 (RM2.85/L) is substantially more than RON95 (RM2.10/L).

Eugene Chua is the Finance Editor of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time, painless) savings in their daily banking, technology and lifestyle spending habits.

Migrating to Australia: good meh???

Narinder Singh

 | November 29, 2013

           

The book does provide some valuable arguments and thoughts, and could be a light read for those Malaysian dwelling with the idea of migrating to Australia.

BOOK REVIEW

‘Migrating to Australia: good meh???’  by Ken Soong and Michael Soong attempt to dissect the intricacies associated with general perceptions among hopeful migrants to Australia. The authors cover wide ranging subject matter in this rather short book that would suit to be more of an idiot’s guide or coffee table companion. From simplified economics to the darker side of Australia is laid for the readers to make some or little good in taking the first step towards making Australia a home.

Ken and Michael are brothers who obtained their tertiary education in Australia in the 1990s and are currently in the teaching profession there. Having migrated in the heat of the era, they share their inner thoughts, bitter sweet experience, and observations made.

This book has a continuous relevance in perspective of time as the lure towards Australia is always present in the minds of many potential migrants from Malaysia and other parts regardless of their profession, age or background. Nevertheless readers must keep in mind that the goal post for migrating into the kangaroo land some how changes position along political tides; and requirements are rather getting more sticky and critical in demand for all categories of migrants.

On this aspect this book does provide the relevant websites as an escape clause in the event the rules change and are not in sync with its content. Many of these website can be easily Googled up with not much effort though.

The authors tried being as updated as possible but then again socio-economic and political landscape of Australia is in a phase of rapid development. Though their style and expressions have been rather non-committal but there is a tendency to be tinged with pre-judgments on certain issues especially those related to finances and job possibilities. No doubt they are quite witty and cynical in revealing some hard facts about taking advantage of the Australian migrating policies but fall short of being detailed.

From a birds view, this book strives to make a neutral stand as much as possible on all matters and radiates a feeling they do not want to step on the wrong toes.

‘Migrating to Australia: good meh???’ tries to make the first impression impact-full as much possible in the first chapter by evaluating if indeed a western culture is better than ours.  Some direct comparisons are made for example in language and the different myths associated with western culture but then again in a super charged globalised world it may not mean much for a migrant.

In the proceeding chapters the book generally debates the various aspects that a person needs to self evaluate all the pros and cons before marching into a migration consultancy firm. Choosing the right schools, neighbourhood, area to live in, taxation system, business environment, education system and many other idiosyncrasies are net into their discussions, some in depth but some merely touched on surface.



The larger part of this book was rather academic and monotonous in dishing out quotes and references. Well, coming from academics, it is no surprise but then again there were many ambiguities and self countering arguments made by the writers.

There were occasions they had to justify as not steering out of sync with the objectives of the book and yet more often than not they did so in jest.

It is difficult not to like the authors per se with their modest and unpretentious style of writing but there are weaknesses in the book. It its endeavour to cast too wide of a net, the authors remain undecided to drill any firm points despite the title with a triple question mark; indicating and implying a strongly opinionated piece at the first impression to a reader.

In questioning the migrating ‘minds’, the writers have in essence possibly projected an image of sour grapes  for themselves. There is definitely this remote possibility after reading the entire book.

Nevertheless, the book does provide some valuable arguments and thoughts, and could be a light read for those Malaysian dwelling with the idea of migrating to Australia.

Ken Soong and Michael Soong, published by Gerakbudaya Enterprise, No 11, Lorong 11/4E, 46200 Petaling Jaya, Selangor, Malaysia, www.gerakbudaya.com, 2013. ISBN 978-983-2344-18-6. RM 25.

Are you financially ready to freelance?

November 28, 2013

Here’s our checklist on getting financially ready to freelance.

 

By Diana Chai
Many of us have at some point thought of leaving our fulltime job and working freelance instead.

Who doesn’t want to have such freedom at work? Freelancers definitely have more say on workload and working conditions, however they also tend to have a very unstable income. Unless a person is already established and well-known in their industry; it is not uncommon for freelancers to go weeks, sometimes months, without paid work.

Because of the instability of it, you will have to prepare yourself financially before going ahead. Here’s our checklist on getting financially ready to freelance.

1. You have enough requisite experience
Though this may look unlike a ‘financial’ preparation measure; it will decide how successful your freelancing endevour is and if you will make any money from it. Many young people come out into the world thinking they can build a career at the beginning by freelancing but employers would rather bank on someone with experience. After all, they are paying you for output and will not want to waste resources ‘training’ you to do a job only to have you use those skills to aid other companies. It doesn’t make financial sense to an employer and hence will not get you jobs.

Collect work experience which will make you not only look reliable and accomplished to hirers but also to bolster your freelance fee.

2. You can balance accounts
As master of your own business and livelihood: financial management skills are a must. You don’t want to end up spending more on your freelance business than you are making from it or leaving little money leaks unplugged. Managing money is a little trickier when you are planning to eke a possible living from selling a service, talent or product but you don’t need to have financial and accounting background. Just know the basics and your way about a balance sheet.

3. You have enough savings
Because a freelancer does not have a fixed income, it is important to have good savings to ensure you are able to pay the bills in the leaner months. Even if you do complete a project; freelancer payments from companies aren’t always paid on time. Some can take weeks. In the meantime, you will still need to eat!

Calculate how much your bills and necessary expenses will cost you in a month. Once you have this number, ensure you have a minimum of six times this amount so you will be covered for at least six months should the projects not come in.

4. You have a back-up plan
Experienced freelancers will agree that aside from networking, a lot of freelancing opportunities are also seasonal. There will be specific periods in a year when assignments decrease, so having a second income will come in handy. It doesn’t even have to be related to your field. You could try your hand at blogging for instance and make some extra cash from advertising or try part-time tutoring.

5. You know how to live lean
Tapering your spending in the ‘leaner’ months will definitely come in handy. If you are the kind of person who doesn’t seem to be able to save money and are living paycheque to paycheque; freelancing may not be for you just yet! Not being on a fixed income will mean having to adopt a frugal lifestyle at times, at least until you have established yourself with long-term clients or have already made oodles of money.

Freelancing certainly has its perks. You get to be your own boss and steer your career according to your needs. However, it can also be a very uncertain path as you can’t be sure of when the next pay cheque will come in. Being financially ready is as important as having the talent and expertise.

This was brought you by Diana Chai from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Starting your emergency fund

November 19, 2013

Emergency funds are usually separate from general savings for holidays and other life events. You wouldn’t want to pay for that car tire whilst foregoing your Bali vacation.

 

By Diana ChaiThere will definitely come a time when life will just happen. Living paycheque to paycheque will surely lead to difficulty when a sudden car repair, hospital bill or purchase comes up. For such instances, having a savings beyond that for retirement and vacations will be helpful.

Why you need one
As the name states, the fund is for an emergency! And having one will definitely save you money and a lot of stress. Many people are ill prepared for life’s little hiccups and when something does happen – they turn to credit cards and personal loans. The added debt at best will cost them exorbitant interest but at worst – may spiral into a debt cycle they are unable to escape.

Emergency funds are usually separate from general savings for holidays and other life events. You wouldn’t want to pay for that car tire whilst foregoing your Bali vacation.

The Basics
To get you started on building your emergency fund; these are some basic rules.

Start by saving 10% of your income. Granted, 10% is harder for someone on a salary of RM1500 than for someone on RM3000 but endeavour to hit the 10% mark anyway. But honestly, the key is to save something. If you can’t meet 10%, go for RM100 a month.

If 10% from the get-go on salary day is too scary a number; spread the amount over the month. For instance; if you earn RM3000; 10% is RM300. Divided over a month, it’s RM10 a day. So, start by saving RM10 a day, every day. The staggered payments make it easier to swallow and you will still end up with the same amount at the end of the month.

Put it in a savings account and not in a safe at home or under the bed. Most savings accounts will give a minimum 2% interest on your savings. This is better than having your fund grow nothing else but mould.

Don’t apply for an ATM card. ATM cards will only help you give in to the urge to withdraw the money. Save the RM8 fee and don’t get an ATM card.

Optimise Savings
Once you have at least RM1000 in your emergency fund; it’s time to get more serious about saving.
Start shopping around for savings accounts with better interest rates. The fund is still for emergencies and at the time you’ll want easier withdrawal so avoid fixed deposit accounts. Savings accounts have limited interest rates but with some digging you may find one giving perhaps an extra 0.5%. It may not seem like much but when your pot grows; it can make a nice difference.

Revise saving levels with every increment. As your salary increases: look to increasing the percentage you save. Saving at an income of RM5000 is easier than on RM3500 so look to increasing to perhaps 15% or even 20% if you can manage it. If you don’t like percentages, increase it by RM50 or RM100 when you can.

Automate savings. Though you can start this at the get-go; it’s sometimes helpful for some to start slowly. The daily method will not work on automation. But once you are comfortable with saving – start an auto-deduct plan with your bank to funnel your savings straight into your savings account. Of course, you can always start with automated savings to help ensure you don’t slack off from the beginning.

Unlike general savings; your emergency pot doesn’t need to always grow. Keep it at RM3000 or RM5000. You’ll only need to restart saving if you’ve used the money. It’s important to remember that an emergency fund is just for emergencies and should not take the place of regular savings.
This article brought to you by Diana Chai of RinggitPlus.com. We believe all Malaysians should have access to free, accurate and independent personal finance information.

A beginner’s guide to medical insurance

November 18, 2013

There are several types of insurance available on the market, but what do they all cover?

 

By Eugene Chua
There are several types of insurance available on
 the market, but what do they all cover? SaveMoney.my explains medical insurance, which should be noted is separate from life insurance or personal insurance.

What is medical insurance?
Medical Insurance functions as a form of protection to cover unforeseen expenses arising from illness, injury or accidents – which can be very expensive, especially if hospitalisation and/or surgery is required. Getting the right Medical Insurance also ensures that you won’t have to fret about the cost of seeking treatment during an emergency. In addition, it also provides you with a stream of income while you undergo treatment.

There are 4 major types of medical policies:
Medical Card/Health Card – covers hospitalization and surgical benefits
36 Critical Illness or Dread Diseases Insurance – a lump sum benefit
Disability Income Insurance – stream of income when you are unable to work
Hospital Income Insurance – provides a specified sum of money on a daily, weekly or monthly basis if you are being treated in a hospital

Where can I get medical insurance?
Medical Insurance products can be found at insurance companies and banks. Pos Malaysia also provides Hospital Cash Income Plan too.

How much does it cost?
Insurance companies and banks provide a few plans for you to choose from, based on your budget and needs. Of course, the longer the list of medical coverage provided, the higher the premium (insurance fee) will be. Aside from this, the premium will also vary based on other factors such as your age, occupation, health record, gender, and whether you are a smoker or non-smoker, subject to underwriting. As expected, those with a higher risk potential will be charged with higher premiums. From our research, the premium for a medical card is basically charged based on the age of your next birthday and it will be increased with age upon renewal.

Medical card / Health card
Government hospitals offer emergency and essential medical care but there is usually a long waiting list. Possession of a medical card will be able to give you more choices to both government and private hospitals. A medical card can also help you prepare for costly expenses and ensures comprehensive coverage in medical, surgical and hospital costs, ambulance fees, and other related medical charges.Things to be aware of:
Panel hospital A panel hospital is the hospital collaborating with the insurance company. All the expenses incurred by the insured are directly payable to the hospital from the insurance company; you do not need to worry about preparing and submitting claims. Depending on the insurance company, the number of participating hospitals varies. Choosing a medical card with more participating hospitals benefits you better, as you will have more choices in the time of emergency.
 
Co-insurance
Some medical cards practice co-insurance, meaning that you’ll have to pay a certain amount of the medical fees, normally at 10% – 20% of the total medical fees incurred, while the balance will be paid by the insurance company. Another similar option is Deductible per disability, which is also the amount you have to bear before the insurance providers pay the claim for you. The difference is that deductible per disability is a stated amount (not a percentage), and only the amount exceeding this deductible amount will be payable by insurance providers. guide on medical insurance in our next piece!
Eugene Chua is the Finance Editor at SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.