Financial Management

Feed-in-tariff (FiT) mechanism under the Renewable Energy (RE) Act which is expected to be implemented middle of this year will enable individuals to earn income by selling electricity generated from renewable resources at home.

The FiT system has, proven to be an effective and efficient mechanism to encourage the development of sustainable markets for RE around the world and Malaysia is heading to the same direction.

Under the RE Act, the public will be able to sell electricity generated from RE to utility companies such as Tenaga Nasional Bhd (TNB) and Sarawak Energy Bhd at a fixed rate for a specific period.

Consumers can install solar panel or photovoltaic system at home and it would be a secondary income for them.

These are the summary about the program,

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money management

If you want to save money, do not just apply common practices in managing money, but instead, make your imagination work and think of new yet effective ways.

– Make it a habit to make a single withdrawal transaction from only one of your ATMs per week. This should include paying your credit card or utility bills ahead of due date in order for you to avoid penalties.

– Below are several ways to help you save money. These are simple ways and there’s no reason why you can’t apply it in your own finances.

– List down all your weekly expenses and reconcile them with your weekly budget. This will allow you to see if you overspent or if you have savings. It is important that you do not spend your entire allowance just in case an unforeseen event happens. This will, likewise, show you in what categories you should you lessen your expenses.

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save money in supermarket

Marketers have researched consumers and their buying habits. Being aware of their strategies can help you become a smart shopper. Here’s what you should know so that you can save money the next time you make a trip to the supermarket:

– You shouldn’t assume things that are displayed at the ends of the shelf are on sale. They’re prime real estate in a store. And even if they are displayed as a bargain, it is likely the prices are still too high. Look for things at the middle of the aisle.

– Things that are placed at the lower part of the shelf are usually cheaper. More expensive brands usually invest on better placement. However, in kids sections, the prime real estate is lower on the shelves where those little eyes may see them quickly.

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subsidies

Malaysia is one of the most subsidised nations in the world. Its total subsidy of RM74 billion in 2009 is equivalent to RM12,900 per household or 4.6 per cent of GDP even higher than Indonesia (2.7 per cent) & Philippines (0.2 per cent).

Due to high subsidies, Malaysia’s fiscal deficit stood at 7% of GDP or RM42 billion in 2009. Malaysia will be bankrupt by 2019 as total debt would soar to a RM1.16 trillion if we do not cut subsidies now.

Below are the breakdown of 2009 subsidies,

  • RM 30.8 billion – Primary, secondary, higher education and scholarships.
  • RM 22.9 billion – Medical services, petrol, toll, foodstuff (paddy, sugar, cooking oil)
  • RM 18.0 billion – Gas subsidy for power and non-power sector, prefential interest rate.
  • RM 2.3 billion – Welfare aid for poor, farmers, fisherman and disable.

Prime Minister’s Department’s Performance Management and Delivery Unit (Pemandu) was giving the task to come out with the plan to rationalise the country’s subsidy scheme.

A nationwide SMS survey conducted by Pemandu found 61% of respondents agreeing to the subsidy rationalisation initiative, with the majority preferring for it to be phased out over three to five years.

Below are some of the recommendations on subsidies that are to be removed.

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credit report

Credit Reporting Agencies Bill 2009 passed by the Dewan Rakyat recently. The Bill requires credit-reporting agencies to obtain consent from an individual prior revealing his financial information to anyone else.

Consumers have the right to inspect the data and give their consent for the data to be displayed or otherwise.

The Bill also clarifies the roles and responsibilities of such agencies, which previously have been criticised for wrongly blacklisting the names of borrowers seeking loans from financial institutions.

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