What you need to know about ATM fees

March 31, 2014

Many of us tend to take out money without realising that along with the money you're taking out, you're also losing a bit of money in the process.

 

By Michelle Brohier

Even with today’s technology where we can do a lot of our banking online, life still wouldn’t be the same without the sight of these machines dispensing much needed cash, especially in times of emergency.

From its inception, the ATM has evolved to become much more than a cash dispensary.

You can print mini-statements, paying your bills, check your accounts or even reload your phone.

But such convenience and availability comes with a price.

The problem is, many of us tend to take out money without realising that along with the money you’re taking out, you’re also losing a bit of money in the process.

While it may be a small sum, it could add up to be a significant amount. It’s also always good to know where your money is going, even if it’s just as simple as RM1.

With that in mind, check out the usual fees involved when it comes to using the ATM.

Annual charges
The cost of your ATM card would normally be RM8 yearly.

But there are banks which either charge you this way or charge you RM0.50 when and after you do your fifth or ninth transaction in the same month.

Cash Withdrawals
Locally


Withdrawing cash from the ATM teller that is the same as your bank is free.

But it’s when you withdraw money from ATM tellers from other banks, or even in a foreign country, you can expect there to be some extra charges.

A lot of ATM cards have MEPS, and as long as the ATM accepts MEPS, you can withdraw money from your account even if the ATM is from another bank. The usual prices are:

MEPS cash withdrawals at local banks (or Islamic or participating banks as stated): RM1.00 per transaction

MEPS cash withdrawals from locally incorporated foreign banks (or other banks as stated): RM4.00 per transaction

If the ATM allows it, you can do an Interbank transfer fund and depending on the bank it can cost between RM0.30 – RM1.

Overseas
When overseas, ATMs with the CIRRUS or even PLUS networks will enable you to take out money from your account no matter which country you’re in.

But the prices for how much it’ll cost to withdraw from these ATMs vary depending on the bank that you use.

Charges can be anywhere between RM8 right up to RM12. Some will also charge you RM1.00 if you’re making a balance inquiry.

Other services
Thankfully, paying your bills or even summonses are free for all ATMs that offer such a service.

As for your Touch ‘n Go, you’ll be charged RM0.50 for every reload that you make.

You can also withdraw from your Tabung Haji Account through these ATMs, but you will be charged RM1 for each transaction.

While all of this may seem like a small amount, if you find yourself using the ATM a lot, these charges can quickly pile up and even amount to the price of one meal.

So be sure you know how much your bank is charging you for using your ATM and know where your money is going.

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

Energy saving light bulbs: To use or not to use

Energy saving light bulbs: To use or not to use

March 28, 2014

Incandescent and fluorescent bulbs are the most commonly used types. Check out the differences between the two.

 

By Caitlyn Ng

It is no secret that conventional energy, also known as non-renewable energy (such as fossil fuels and natural gas), is depleted by enormous usage at an alarming rate.

Mankind’s hunger for energy is slowly eating away at Earth’s reserves, where soon, it will cease to exist altogether.

What other options are there for us?

Non-conventional energy, or renewable energy, can be one way to deal with this problem.

It’s where people decide to harness the energy-creating powers that are natural (such as solar, hydro and wind) so that we will be able to continue existing with adequate power supply, without much difficulty.

For the regular Joes and Janes unable to make turbines and dynamos in the home; we can aim for slight modifications which will make all the difference in conserving energy so that it is more beneficial in the long run.

A light bulb is a simple, often overlooked factor in most homes’ total energy consumption.


In order to minimise the dependency of people on lighting up rooms with bulbs that do nothing for the environment, inefficient light bulbs are slowly being replaced with the answer to depleting natural resources: energy saving light bulbs.

Most of these are compact, just as bright and available in a wide range of shapes and sizes, making it incredibly easy to fit any workplace or household so the only difference that people will notice would be the drop in their electricity bill amount.

But what is the difference between the two?

SaveMoney.my takes a look.

Incandescent bulb vs Fluorescent bulb
Did you know that watts does not tell how bright a light will be? Instead, light is measured using a form of units called “lumens”, no matter the type of bulb, where the more lumens the brighter the light.

Hypothetically speaking, a source of light needs to give 680 lumens per watt in order for it to be 100% efficient.

There are 4 types of bulbs in the market; incandescent, halogen, compact fluorescent (CF) and LED.

For the sake of ease of comparison, we shall only be looking at incandescent and CF, the most commonly used types.

The table below shows the amount of brightness in lumens that you can expect from both incandescent and CF bulbs:

Incandescent Bulbs (watts)	Compact Fluorescent Bulbs (watts)	Lumens (Brightness)
40	8 – 12	400 – 500
60	13 – 18	650 – 900
75 – 100	18 – 22	1100 – 1750
100	23 – 30	1800+
150	30 – 55	2780

As can be seen, a CF bulb is approximately 4 times more efficient than an incandescent bulb, which is why you can buy a 15-watt CF bulb that is able to produce the same amount of light as a 60-watt incandescent bulb.

In addition, although CF bulbs are initially more expensive, you save money in the long run because they last up to 10 times as long as an incandescent bulb.

The bulb life of a 60-watt incandescent is about 1000 hours whereas a 15-watt CF is about 10,000 hours. However, there is a slight drawback whereby CF bulbs may take a few moments to reach its full brightness whilst incandescent bulbs reach its full brightness instantaneously.



Hence, CF is energy-saving whereas incandescent isn’t as it produces more heat than light and therefore, the heat is just wasted energy. An energy efficient light bulb by definition uses less energy.

For example, a normal light bulb that uses 60 watts for 1000 hours per year (about 3 hours a day) would give you 60kWh of power, which would cost about RM13.08 (based on 21.8 sen per kWh).

On the other hand, with an energy saving light bulb that is a 15 watt CFL (which lasts much longer than the normal one), it would only come up to RM3.27, saving you RM9.81.

And that’s just one bulb!

You could actually be saving far more than that per year with ease, in addition to helping the environment.

A great way to be socially responsible in anyone’s books.

To calculate your electric bills
According to the Ministry of Energy, Green Technology and Water (KeTTHA), there is a handy table available to help one calculate the amount of money owed for electricity usage bills as below (with a minimum monthly charge of RM3.00):

Domestic Tariff (kWh)	2014 Rates (sen/kWh)
For the first 200 kWh (1-200 kWh) per month	21.8
For the next 100 kWh (201-300 kWh) per month	33.4
For the next 100 kWh (301-400 kWh) per month	51.6
For the next 100 kWh (401-500 kWh) per month
For the next 100 kWh (501-600 kWh) per month
For the next 100 kWh (601-700 kWh) per month	54.6
For the next 100 kWh (701-800 kWh) per month
For the next 100 kWh (801-900 kWh) per month
For the next kWh (901 kWh onwards) per month	57.1

Caitlyn Ng 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.

Retiring POOR or COMFORTABLY - it's your CHOICE!

Retiring POOR or COMFORTABLY - it's your CHOICE!



KUALA LUMPUR - So many of today's young adults live beyond their means.

They are decked in brand names from head to toe, and live in the absurd fear of jeapordising their reputation should they fail to do so.

They feel compelled to own the latest gadgets and drive fancy cars, even if it costs them a lifetime of loan instalments.

This is worrisome in that not only do their "live for the moment" motto blinds them from seeing the importance of retirement planning, it also sends them on a downward spiral where their finances are concerned. Many of them have been declared bankrupt from a very young age due to overspending.

SAVING FOR RETIREMENT NOT A PRIORITY
According to the Department of Insolvency, 23,397 of those declared bankrupt from 2007 to September 2013 were between 24-34 years old. Of the figure, 1,322 were 24 years old.

A study by Prof Dr Jariah Masud, a senior research fellow at the Gerontology Institute of Universiti Putra Malaysia, found today's younger generation focused on day-to-day spending without sparing a thought for future finances.

Retirement planning is put on the back burner as priorities are given towards career advancement, marital commitments, property ownership and similar undertakings.

"Today's generation is a 'consumer society' that is obsessed with lavish lifestyles. The way they value money is also different from the previous generations.

"Those from my generation see the value of money in savings, while today's youths see it in terms of purchasing power," she told Bernama.

The "AXA Retirement Scope 2010", a global retirement study by the AXA Group, found that of the 38 percent of Malaysian workers who planned for their retirement, many of them only started saving as they were nearing 40.

The study, which was conducted in 26 countries across Europe, U.S. and Asia, also found that 46 percent were only ready to save for their retirement as they approached 50 years old.

Failure to build financial reserves from an early age can make the realities of retirement age harder to handle.
The situ
ation is worse for those without a pension. Many are shocked to find how quickly they deplete their Employees Provident Fund (EPF) savings and subsequently find themselves forced to rejoin the workforce.

RELYING ON EPF
It is rather surprising how many workers falsely believe that their EPF savings is enough for retirement.

Some believe it is even enough to cover the expenses of their entire family and thus there is no need to build their financial reserves elsewhere.

The Head of EPF's Retirement Research Section Farizan Kamaluddin said studies found that of the 13 million EPF contributors in Malaysia, only 7.36 percent have an excess of RM150,000 in savings at 55, while 70.89 percent have less than RM50,000.

"Some of them cannot help it (having little savings) because it depends on their contribution. If their salary is low, their contribution is low too," she said.

The age for withdrawal of EPF savings has remained at 55 since its establishment in 1951. This is despite the government extending the retirement age to 60 and the country's life expectancy increasing to 75.

SIMPLY NOT ENOUGH
With the rising cost of living, a longer life expectancy, low salaries and early retirement at 55, many would not be able to make their EPF savings last, said Farizan.

It was found that 50 percent of retirees deplete their EPF savings in the first five years, thereafter having to work again.

"What causes their savings to be drained so quickly is their failure to plan their finances accordingly, and using the money as a means to fulfill their desires and not as a replacement for their income," she explained.

Therefore, there is a need to vary their sources for financial reserves. They also need to be prudent with their withdrawal of EPF savings before retirement, even if it for settling their housing or education loans.

"If they have other forms of savings, they should see their EPF savings as the last resort for making withdrawals," she said.

Farizan said EPF has also set a new quantum for their basic savings at RM196,800 as the minimum amount a contributor needed to have in his EPF account by age 55, effective January this year.

To prevent the fast depletion of EPF savings, EPF has also introduced a more flexible form of withdrawal upon reaching 55 years old where contributors can choose to withdraw completely, monthly, or partially.

MINIMUM WAGE
Although many government servants may feel more at ease under the pension scheme, they could also get into financial trouble if they chose to live a lavish lifestyle and don't prepare for their retirement.

The Director of the Gerontology Institute of UPM, Prof Dr Tengku Aizan Hamid said civil servants needed to be wary of the drop in income upon retirement.

"We cannot carry our present lifestyles into old age. Would you be able to alter your lifestyle when the pension you receive is considerably less than your present income?

"There have been cases where a pensioner failed to settle his credit card debts that ultimately had to be borne by the children, simply because he wanted to maintain his extravagant lifestyle," he said.

The government, in helping increase employee contribution, has implemented the minimum wage effective January this year following the increase in retirement age to 60.

The government has also set up the 1Malaysia Pension Scheme for the self-employed with no fixed income to voluntary contribute in the EPF. It has also encouraged youths to make long-term investments via the Private Retirement Scheme.

It is easier to make money while we are young and our health is at its peak. To rely on our health at an old age can be quite a gamble, so planning wisely and early for our retirement years can help ensure we are comfortable in our old age.
 -BERNAMA


 

Facebook to use satellites, drones to spread the Internet

Facebook to use satellites, drones to spread the Internet


Facebook is harnessing satellite, drone and other technology as a part of an ambitious and costly effort to beam Internet connectivity to people in underdeveloped parts of the world

SAN FRANCISCO (REUTERS) - Facebook is harnessing satellite, drone and other technology as a part of an ambitious and costly effort to beam Internet connectivity to people in underdeveloped parts of the world.

The world's No. 1 social network said on Thursday it has hired aerospace and communications experts from NASA's Jet Propulsion Lab and its Ames Research Centre for the new "Connectivity Lab" project.

"Today, we're sharing some details of the work Facebook's Connectivity Lab is doing to build drones, satellites and lasers to deliver the Internet to everyone," Facebook chief executive Mark Zuckerberg said in a post on Facebook.

He gave few specifics and did not specify a time frame.

Can you put a price on time?

March 27, 2014

One way or another, we're sacrificing one thing for the other. Spend money to save time, or spend time to save money. But we all understand the value of money, as it's tangible, countable and manageable.

By Michelle Brohier

Everyone knows what it’s like to be busy. To many of us, it’s a lifestyle that we continue to lead until today. Because of this, we all understand the concept of how precious time can be, as there never seems to be enough of it. Because time is so precious, many of us are willing to spend quite a bit to make sure we have enough to do things we deem is more important. While others, in their attempts to save as much money as possible in these tough economic times, don’t mind sacrificing time to save some money.

One way or another, we’re sacrificing one thing for the other. Spend money to save time, or spend time to save money. But we all understand the value of money, as it’s tangible, countable and manageable. That’s why we understand the loss of it when we sacrifice money to save time. But if we can put a value to time, how much money could it be really worth?

Calculate your time’s worth
To be honest, there’s no real way we can put a value on time. After all, since value is derived from the supply we have – none of us are truly sure of how much time we have on this earth. So though this is by no means an attempt to cast in stone the absolute value of time; it’s just one of the many ways you can look at how much an hour of YOUR day is worth.

Every hour we dedicate to work, we earn a certain amount in return. So when you’re not earning, how would you be spending it? That’s one way of looking into the value of your time. An average Malaysian, especially around the Petaling Jaya district, earns about RM47,996 a year. If you calculate your current hourly wage, you’ll be able to determine how much an hour is worth in your situation, especially once you’re out of working hours. So for those earning the amount mentioned earlier, this means you’re earning RM23 per hour.

Now say you’d rather drive 20 minutes away for a good meal. That’s a good RM7-RM8 of your time spent to get there, and this of course doesn’t involve the amount of money you’re actually spending on petrol, parking and food you’ll use your actual money to spend on. So you’re not physically losing money by spending time driving right? That’s right. But if you think about how much money that amount of time costs, and how much RM7-RM8 is to you, you may start to think that driving that far for a meal may not be worth it in terms of time as well.
 
Spend time, lose money?

 
Some of us are willing to spend a lot of time in order to get a good deal. For example, you spend almost 5 hours at the MATTA Fair hoping to get a good deal, but you come out empty handed as many of the deals offered weren’t attractive to you. If you think that was a waste of time, imagine realising that time costs RM115 and that’s when the true worth of your loss hits you. Or maybe you did get a deal by going to a grocery store with even further discounts. But if it took 80 minutes to drive there, that’s RM30 down the drain, and if you only save RM15 from your grocery, that shows that you’ve wasted more time in your attempts to save money.

Even so, it is still possible to spend more time and you’ll get a better deal for your money. You just need to weigh in on how good that deal is. If you managed to get a good tour package during the MATTA Fair that you know you’ve saved at least RM1000 from, then spending that much time feels completely worth it. At the same time, if your journey to the restaurant of your choice with your food ready all within 15 minutes or less, that’s around RM6 in terms of time. And with the quick service and hearty meal, it could be both time and money well spent.
 
The cost of time
But even with this reference, it’s tough to put a price tag on time. You definitely wouldn’t want to start calculating the cost when you’re on holiday, or with your family and friends. And you definitely don’t want to start thinking about how “time is money” when all you really want is a break from the busy week you’ve had and just need to sleep over the weekend to recover. After all, that’s the time you earned and you can spend it however you want to.

What’s important is to consider all the factors that go into the cost of an item, including your time. If you’re trying to save money, make sure that you’re not wasting your time. In the same manner, if you’re trying to save time, make sure you’re not wasting money as well. Weigh in your options, and be sure to consider what you think is more important to save and spend on.

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

10 Reasons Why You Will Never Become Rich

10 Reasons Why You Will Never Become Rich

There’s an interesting maxim about how long wealth actually stays with a person and their descendants.

 

The saying is three generations, tops: one to make it, one to spend it, and the third to blow it.

 

Of course, there are exceptions to this rule, but have you ever sat down and seriously thought about wealth and what it means to you?

 

Or do you figure, “What the heck, I’ve always been broke, my forefathers were broke; it’s generational” – it’s just a rite of passage of sorts.

 

If you feel that wealth is out of your reach, you aren’t alone.

 

According to some experts, there are millions of ‘clueless potential millionaires’ who could be at the top of the wealth ladder if they only reined in a few bad habits.

 

However, you may be a skeptic, and rightly so.

 

Being wealthy means different things to different people.

 

But according to the experts, there are financial mistakes many people make that keep them away from their possible wealth.

 

What is Wealth Anyway? 

Most people do not equate wealth with a mansion or a big yacht.

 

 In fact, a scanty 7% of people surveyed associate wealth with material possessions like cars, houses and boats.

 

Rather, to many, being rich means having just enough to not worry about the next payday – that’s according to 33% of those questioned.

 

An additional 26% define being wealthy, or rich, as having more than enough money to quit their jobs.

 

Still, few people place an actual dollar amount on what it means to be wealthy.

 

Only 17% felt that being rich means having at least $1 million or more, and 11% stated a six-figure yearly income would make them feel rich.

 

Yet most people who are rich don’t even consider themselves rich.

 

Maybe it’s because being ‘rich’ or ‘wealthy’ has very little to do with material possessions, and more to do with how people feel about themselves.

 

Nonetheless, according to financial experts you will never be rich if you are bogged down by anything on the following list:

 

 

Ten Reasons Why Someone Will Never Be Rich

 

1. Overspending

If you have a ferocious appetite for spending beyond your means, you’re not alone.

 

According to a survey, of the 52% of people who habitually overspend, many balance the shortfall by taking from their savings, and 22% rely on credit cards.

 

Blowing all your money each month is not a realistic pathway to wealth.

 

Start tracking where your money goes each month, check where you can cut back, and create a ‘realistic’ budget that allows you to pay your bills and invest in a retirement account or an emergency fund.

 

2. Not Saving Enough

Welcome to the club!

 

The personal savings percentage in the US is a measly 4.9% of disposable income.

 

Saving should become a priority if you want to accumulate wealth.

 

Start with an emergency fund.

 

Once your emergency fund is substantial, you can redirect small amounts toward other goals like purchasing a home or paying for college.

 

3. You Have Too Much Debt

Certain debts are a precursor to financial success, like purchasing real estate or starting a business; however, a high-interest credit card balance is not. Pay off credit cards with the highest rates first.

 

4. You Don’t Have a Plan

Without a definite, clearly defined plan, becoming rich will seem like an unbelievable dream.

 

This alone will solidify your excuses for overspending and not saving.

 

As the saying goes, “Those who fail to plan, plan to fail.”

 

Putting together a financial plan may seem tedious, but it doesn’t have to be, and you can get used to it.

 

 

5. You Don’t Have an Emergency Fund

Experts say you need at least six months of income saved in case of an emergency.

 

Life is tricky, and not having some type of safety net can turn a comfortable situation into a disaster.

 

6. You Started Late

Time is slipping by.

 

Just like starting an exercise routine, the most difficult part about saving is getting started.

 

Even if you have debt, a small income, or many expenses, you can save something, even if it’s only a small amount.

 

7. You Complain Rather Than Commit

“I don’t earn enough money”; “Life is too expensive”; “It’s hopeless, I’ll never get out of debt.”

 

Have you uttered any of these statements before, or perhaps all of them?

 

Old habits die hard; however, as long as you do nothing to change, nothing will change.

 

Stop complaining and making excuses.

 

Instead, take responsibility for your non-productive habits and concentrate on how to change them – and then do it!

 

8. You Live for Today, and Forget About Tomorrow

It’s no fun getting serious and thinking about retirement and all that stuff.

 

Nonetheless, eventually it has to be done.

 

The problem is that impulsive and unregulated spending leads to debt… period!

 

Do yourself a big favor: Get rid of the ‘buy now, worry later’ attitude, and switch to a ‘save now, get rich later’ way of thinking.

 

 

 

9. Putting All Your Eggs in One Basket

You might get lucky by wagering all your money on one type of investment.

 

Just like you might get lucky winning the lottery.

 

But that’s not a strategy to live by, or for getting rich.

 

Putting all your money in one place is not advised because it puts you at too much risk.

 

Your investment portfolio should include multiple investments with varied levels of risk and ROI potential and liquidity.

 

10. You Just Don’t Get It!

You may be one of those people who believe that somehow something will come along and save you, so why bother with saving or trying to get out of debt?

 

Maybe you will get lucky and land a fantastic job, receive a big pay raise, inherit money, hit the lottery, or whatever!

 

But ‘whatever’ won’t cut it if you really want to become rich.

 

Yes, life is uncertain.

 

No one knows what will, or will not, actually happen; therefore, why not focus on what you can control today?

 

Get it together now and save yourself, in case someone or something else won’t.

 

One thing you can be sure of: You are already rich.

 

Think about it.

 

If someone came to you and offered you a million dollars for your arm, would you give it up?

 

Why not, you have two; you can surely spare one of them!

 

Of course the answer would be no!

 

Being rich is more than physical ownership; it’s a state of happiness and well-being, while wishing the same for others.

 

So while you are working on getting rich materially, remember to be happy along the way!

Your guide to Malaysian taxes 2014

Your guide to Malaysian taxes 2014

March 26, 2014

Here’s how the tax system works.

 

By Diana Chai

Tax season is upon is and hiding under the covers won’t help. It’s the only other thing in life that is certain; as the saying goes. As much as filing can be a pain; the advent of e-filing is now making it so much easier. Instead of filling in lengthy forms, heading to the post office and praying it doesn’t get lost in the mail; you can simply turn on your computer and get it done there – without having to leave your home or put on pants.

If you are a working adult earning approximately RM3,058 per month and above, you will have to pay tax: And if this is your first time filing; you may have quite a few questions before you get started.

Before you get in a tizzy over all the information out there, let us walk you through taxes: the basics; the number crunching; and finally, getting some of your most asked questions out of the way.

Basic tax 101


Although you are still perfectly welcome to do your filing the old-fashioned way on printed forms and via the postal service; the online filing option is really convenient and you won’t have to worry about your cakar ayam (chicken clawing) writing may confuse the LHDN officers.

For first timers, you’ll need to register for e-filing. Head to LHDN’s website where you will see a myriad of buttons leading you into the wide world of taxes. Click on the e-daftar button to get started; fill the form and you will be instantaneously given a Pin and reference number. With this; you can login for the first time. If you’re already registered and have done this before; you’ll want to skip this section!

Once logging in; you’ll be taken straight to the appropriate form: Borang B(e) for salaried workers and B for those with their own businesses. Here’s how the tax system works:

1. Taxable income (income that is taxable and not exempted) – reliefs = chargeable income.
2. Chargeable income x applicable tax rate = calculated tax
3. Calculated tax – rebates (zakat, personal rebate, etc) = tax payable.

So for those who get in a tizzy over math formulas; fret not, the online form will calculate it for you but this is important to know how this works so you can make full use of the rebates and reliefs you are eligible to claim.

Filling in the online form
The online form may look intimidating at first glance but it is actually quite straightforward. Just follow the prompts and if you need to go back to change anything you can do it at any point before you submit the final form. Each section will be divided into pages so you don’t feel overwhelmed. The form automatically calculates for you but it’s important to know which areas to fill (namely reliefs and rebates!) to save money.

Save money on your taxes
You can save money on taxes by knowing the reliefs and rebates which you can claim. But do remember that you’ll need to keep your receipts handy.

Though it’s not something that happens to everyone, every year, tax officers are known to suddenly ‘pop by’ your home to check if you have the receipts for the items you’ve claimed reliefs on.

It’s advised that you save these receipts for at least 3 years to be safe.

It’s also important to know the difference between reliefs and rebates.

Reliefs are deducted from your chargeable income where else rebates are deducted from your tax payable. This makes a big difference.

Reliefs essentially only reduce the amount of income which tax is applied to but rebates actually reduce the amount of tax you are required to pay.

 As such, there aren’t that many rebates and much more reliefs. Although the two aren’t made equal; making the most of both will save you money.

These are just some of the common reliefs you can use to write-off the taxable amount:

Self and Dependent	9,000
Life insurance and EPF	6,000
Husband/Wife/Alimony Payments	3,000
Ordinary Child relief (per child)	1,000
Interest expended in 2013 to finance purchase of residential property dated 2010 (but interest payments starting in 2011 only)	10,000
Net saving in SSPN’s scheme	6,000
Education Fees (Individual)	5,000
Updated: PRS Voluntary Contribution	3,000
Purchase of personal computer (every 3 years)	3,000
Insurance premium for education or medical benefit	3,000
Special relief for tax payers earning an income of up to RM8,000 a month (RM96,000 anually). Only applicable for the 2013 year of assessment.	2,000
Purchase of books, journals, magazines and publications	1,000
Complete medical examination	500
Purchase of sport equipment for sport activities	300

*Example is for illustration purposes only and does not reflect an actual case study.

This isn’t the whole list – but some of the more common reliefs. The rebate list is shorter:

1. RM400 rebate if your chargeable income is below RM35,000;
2. Rebate for zakat and fitrah;
3. RM400 rebate for couples with a combined chargeable income of below RM35,000 (in addition to the first RM400).

Time to dig out those receipts and start tabulating!
 
Counting your taxes
Now that you know what reliefs you can claim and how much you’ve earned; it’s time to calculate your tax payable.

Following the formula above, this is how it might look like:

 Example: RM46,000 (taxable income) – RM15,500 (tax reliefs and exemptions) = RM30,500 (chargeable income)

Chargeable income tier	% of tax	amount
On the first RM20,000	2%	RM300
On the next RM10,500	6%	RM630
Total tax amount		RM930

RM930 (tax amount) – RM400 (tax rebate) = RM530 (tax payable)

But if calculating is not your thing; let us do it for you.

We at SaveMoney created an app to help you with the calculations.

All you have to do is key in the required fields and you’re done.

This way you’ll know how much tax you’re liable to pay.

Your questions answered
For first timers, the world of tax can seem like a vast unknown.

Many questions may be running through your mind: Do I have to pay tax with my level of income?

Why isn’t my employer handing this? We tackle some of your queries here but for more; you can always head over to our site.

Q1: What is the minimum income required to be taxable?
You are taxable if you earned an annual income of RM36,704 (or about RM3,058 per month) or more in 2013.

Q2: My new income has pushed me into the next tax tier. Does this mean I am worst off despite my raise?
Although a raise does mean you pay more tax – it will hardly ever leave you worst off than if you were without it! Malaysia uses a progressive tax system which means that only the portion of your salary exceeding the tier will be charged the new rate and not your whole salary. This can make a big difference. However, there are some downsides. A higher salary may mean you are no longer eligible for the additional rebate offered to those with a chargeable income of below RM35,000.

Q3: Why can’t my employer file for me since they are already doing monthly deductions?
Your employer may know how much you are earning from them and some reliefs which can be assumed from your marital status and number of children but they wouldn’t know of other incomes you receive nor all of the reliefs you could be eligible for which could reduce your tax payable. Why pay more tax than you need?

Q4: Will I be penalised if I do not file and pay my taxes on time?
Yes, you will be charged an additional 10% as a late penalty if you do not pay by 30th April 2014. If you continue to wait past 60 days; an additional 5% will be charged on top of the tax owed and the penalty!

Get filing!
Paying out more money for taxes is nobody’s idea of fun so best to get it out of the way!

But who knows; if you play your cards right, you could actually receive returns instead.

This guide is just a snippet. If you want more info on reliefs or just anything tax related; check out our ultimate guide to tax season 2014.

Let’s get cracking!

Diana Chai is 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.

Facebook takes $2 billion dive into virtual reality

Report from AFP dated 26 March 2014 :-

Facebook takes $2 billion dive into virtual reality

SAN FRANCISCO - Facebook on Tuesday announced a $2-billion deal to buy a startup behind virtual reality headgear that promises to let people truly dive into their friends' lives.

Facebook co-founder and chief Mark Zuckerberg said that the acquisition of Oculus was a long-term bet that making the social network’s offerings more immersive would pay off.

"People will build a model of a place far away and you will just go see it; it is just like teleporting," Zuckerberg said.

"I do think gaming is a start," he said in a conference call, referring to the Oculus headset’s original design focus.

Zuckerberg billed the acquisition as part of a drive to build the "next major computing platform that will come after mobile."

For now, Facebook will use its resources to make Oculus headgear affordable and ubiquitous, according to Zuckerberg.

The California-based social network does not intend to become a hardware company, but Zuckerberg said it is open to people using virtual reality devices for immersive shopping experiences at Facebook.

Facebook plans to build on Oculus technology for areas such as communications, education, and entertainment.

Oculus shareholders will receive $400 million in cash and 23.1 million Facebook shares in the deal.

Facebook called Oculus, launched in 2012, the leader in immersive virtual reality technology with a strong following among developers.

The company has already garnered more than 75,000 orders for the $350 Oculus Rift headset development kits.

Health and beauty retailer launches E-store in Malaysia

Report from The STAR (Malaysia) dated 25 March 2014 :-

Health and beauty retailer launches E-store in Malaysia


Buy online: (From left) Guardian Malaysia general manager of operations Ricky Soon, Loi, general manager of merchandising Soon Ai Lan, general manager of business in formation services Yang Kim Lan and E-commerce manager Tey Hong Leng at the launch o f Guardian’s E-Store at Paradigm Mall in Kelana Jaya recently.

A HEALTH and beauty retailer is making shopping more convenient for its customers through an online store.

The Guardian E-store is open 24 hours and offers 6,000 products comprising health supplements, beauty products, skincare, cosmetics, personal care and general merchandise for purchase online.

“The Guardian E-store is an important new channel for us,” said Guardian Malaysia chief operating officer Loi Liang Tok at the store’s launch in Paradigm Mall, Kelana Jaya, recently.

“This initiative reflects our commitment to offer greater convenience and shopping comfort to customers and serve them better,” she said.

Loi said the security of E-store transactions was assured.

“The secured payment gateway is provided by CIMB Gateway, one of the leaders in the e-commerce sector,” she said, adding that they might have more payment gateways in the future.

“We will add more products, new lines, new formulations and relevant seasonal needs on a regular basis,” said Loi, noting that online shopping was on the rise.

Guardian is targeting sales of RM50,000 per month through the E-store.

“For delivery, we are working with several providers in Peninsular Malaysia, Sabah and Sarawak with orders delivered within three to five days.

“Purchases of RM200 and above enjoy free delivery within the peninsula while delivery to Sabah and Sarawak costs RM10,” said Loi.

Customers enjoy the same prices online as they would in Guardian’s stores.

In conjunction with the E-Store launch, Guardian is offering the Gillette Mach 3 Razor and Gillette Fusion Proglide Base Razor, to online purchasers, two weeks before they become available at Guardian outlets.

For details, visit https://online.guardian.com.my.

Pressure on retail outlets, incoming space may affect tenancy and rates in Kuala Lumpur

Pressure on retail outlets, incoming space may affect tenancy and rates in Kuala Lumpur, Malaysia

PETALING JAYA: Incoming supply of retail space into the Malaysian property market this year is expected to create pressure on existing outlets looking to maintain their tenancy and rental rates.

According to property consultant CH Williams Talhar & Wong Sdn Bhd, retail space is expected to increase by 6.4 million sq ft this year.

“This is expected to mount significant pressure on existing shopping centres to keep tenants,” it said in its 2014 property market report.

It added that new supply this year would likely see vacancy rates rise compared with the previous year.
 

 
 
“Vacancy has historically hovered around 9% to 11% over the last five years and 2013 has been a stable year for retail centres in the Klang Valley.

Average vacancy dropped marginally to 10% from 11.4%,” the report said.

Malaysian Association for Shopping and High-rise Complex Management past president Richard Chan said that despite the incoming supply, there would always be demand for new malls, depending on the location.

“There is always demand, but there is oversupply too. This is because while rents have hit the roof in some places, others are really struggling.”

According to the report, average prime retail rents maintained a steady growth trend with a 10% increase year-on-year in 2013 to RM22 per sq ft compared with RM20 per sq ft in 2012.

“The prospect for retail rents accretion for secondary malls, however, is coming under increasing pressure from an increasing number of incoming retail centres over the coming years.”

It said an analysis of real estate investment trust-owned malls in the Klang Valley revealed that prime shopping malls’ net yields had continued to be compressed to the 4.4% to 6.2% range while gross rents yields ranged between 6.2% and 9.4%.

“The increasing affluence of the urban population and growing middle-income population in the Klang Valley will continue to support domestic spending.

“In contrast, the rising nominal inflation and a burgeoning household debt threatens to weigh down on domestic demand.

“Retail space, especially in lifestyle malls, will become increasingly competitive as numerous new mixed-use developments have incorporated retail centres as key components and many of them are expected to enter the market in the next three to five years,” the report said.
----- Report from The STAR (Malaysia) dated 25 March 2014
 
 

Buying laptops: How to get your money’s worth

March 24, 2014

Are you thinking of getting your next laptop computer but not sure how to go about it?

 

By Diana Chai

Just last week, I had the interesting task of replacing my now ancient laptop. As the only one of my friends still struggling to make Windows Vista work; I knew it was time although letting go of my trusty ‘friend’ was not easy. After all, it still worked and despite near-death scrapes and the fact that it takes 3 minutes just to load a basic webpage, it did what I needed it to do.

You see laptop hunting and buying can be daunting: All these specifications regular Joes and Janes don’t quite understand in full; dealers telling you you’re getting a good deal when you know you aren’t really. After my experience, I decided if there were more like me out there – they’d find a laptop buying guide useful. With the help of the RinggitPlus tech team and our money-saving gurus; we compiled this guide.

Are you thinking of getting your next laptop computer but not sure how to go about it? Why not have a read of our top tips below and learn how to stretch your ringgit further and get the best laptop for your budget.

Tip 1. Laptop vs Desktop or Tablet?
Most people plonk down for a laptop as it gives you a mix of portability with computing power, even if you have to pay a little more for it .With so many options now in the market, it can be quite a difficult decision to make when deciding between a less-portable desktop computer, a traditional 1.5-3kg lug-around laptop/notebook computer, or a flashy new 7-inch or 10-inch tablet.

This quick table should help you decide:
“Average” here means what we expect 90% of Malaysian consumers to purchase.



Tip 2. Are you buying ‘too much’ laptop



In Malaysia, if you think back to several years ago, RM2,500 was considered a good price for a budget laptop which can do basic stuff like surf the web, edit documents, check emails etc. Today, paying that much will get you a seriously powerful machine; and Apple with their “premium” positioning gets away with charging much more than that.

But if you’re not playing hours of 3D games that put World of Warcraft to shame; you really won’t need such a powerful machine.

And it’s not just underpowered plastic boxes in the RM1,800 – RM2,000 price range, either. Intel Core i5 CPUs and touch screens in slim, reasonably attractive bodies, with 128GB SSD hard drives are available in that price range – which is more than adequate for most users, unless you’re planning on editing a lot of HD video.

Tip 3. Know what you’re paying for
Always be sure to ask what’s in your machine and package for the price you are paying. A lot of these high-powered, slightly higher end machines sometimes cost more because of touch screens and flexi- monitors but then leave out certain other hardware such as DVD drives. With everything being downloadable these days (and we mean legitimate, legal downloading you); there is rarely a need for the drive. But if you still like buying a music CD and sticking it into your laptop as you work; or if you want to play your old CDs and DVDs from some years back – make sure you ask about whether or not your laptop comes with a drive.

Other things to note when buying a laptop is what kind of operating system you want on it (ignore this question if you’re buying a Mac). If you’re used to using Windows; be sure to ask whether your new laptop will come with this. To make a laptop cheaper, some shops sell the very same laptop for RM200-300 cheaper without Windows. If you’re thinking of switching to Linux or something like that; go for a cheaper laptop. No sense paying for Windows if you’re only going to delete it later.

There will also be shops that promise many ‘freebies’ like a mouse, cooling pad, cleaners and covers but these aren’t actually free. More often than not; they are worked into the price. You’ll notice there are some shops that sell the ‘bare’ package; just the laptop and backpack; for approximately RM100 less. It’s not to say the extra stuff isn’t worth the money; but if you already have all these accessories at home, no sense paying for it again.

Tip 4. Think about your laptop portability



Now that you’ve decided on the laptop, the next question is usually “What kind of laptop should I buy? Light and basic or bulky powerful ones?”. The best way to answer that question is usually with how frequent you expect to carry around your laptop. Every day? Once a week? Once in a while?

The answer to that should determine what screen size your laptop should have, which largely defines the system size and weight. Everyday and multiple times per day commutes suggest a lightweight 13-inch ultrabook (similar to the Dell XPS 13 or MacBook Air). Making a surprising comeback are ultraportable laptops with 11.6-inch screens, including several recent 11-inch hybrids and Windows tablets, where you may only have to take the screen with you and leave the keyboard base at home or the office.

More common midsize laptops, such as the 14-inch or 15.6-inch model probably sitting on your office desk right now, are OK but not much fun to carry around more than once a day.

Lastly, if you’re convinced you’re never going to need to take your laptop along with you, except something like once a month, then a big 17-inch or larger desktop replacement is a viable option.

Keep in mind that most of these big laptops can’t run for very long away from a power outlet though!

If you know what you want (just a laptop to type up work and surf Facebook?), buying a laptop can be fun. Unlike days of olde; laptops now even come in funky colours like powder blue, white, red and even shades of pink! There are many ways to customise and make it your own; all much cheaper now than before.

Happy shopping!
This was brought to you by DIANA CHAI from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.