1. An allocation of RM191.5 billion, consisting of RM138.3 billion or 72.2 per cent (operating expenditure) and RM53.2 billion or 27.8 per cent (development expenditure).

2. Special payment of RM500 in December 2009 to civil servants from Grade 41 to Grade 54 or its equivalent as well as those on mandatory retirement.

3. Enhancement of tax incentives for healthcare service providers who offer services to foreign health tourists. Income tax exemption of 50 per cent on the value of increased exports will be increased to 100 per cent.

4. Individual taxpayers will be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012.

5. Civil servants are eligible to apply for computer loans once in every three years as compared to once in every five years now.

6. Subsidies, incentives and assistance amounting to almost RM2 billion to safeguard the interest of farmers and fishermen.

7. An allocation of RM9 billion to finance infrastructure projects, including construction of roads and bridges, water supply, sewerage services, rail facilities, ports and sea services as well as airport projects.

8. An additional allocation of RM20 million for small-scale Malaysian-Indian entrepreneurs under the Tabung Kumpulan Usaha Niaga (Tekun), on top of the existing RM15-million allocation.

9. Establishing a RM200-million Creative Industry Fund to finance activities, such as film and drama productions, music, animation, advertisements and local content development. Establishing “Tabung Kebajikan Penggiat Seni” to ensure the welfare of artistes.

10. An allocation of RM20 million for 20 schools to be identified as High Performance Schools (SBT) in 2010.

11. Awarding national scholarships to 30 “creme de la creme” students strictly based on merit. These scholarship recipients will further their education in world-renowned universities.

12. Converting the National Higher Education Fund Corporation (PTPTN) loans to scholarships for students who graduate with first class honours degrees or equivalent beginning 2010.

13. Providing a 50 per cent discount on fares for long-distance services of Keretapi Tanah Melayu Berhad (KTMB) to students aged 13 and above beginning Jan 1, 2010.

14. Offering a netbook package, including free broadband service, to 100,000 local university students for a start for RM50 per month for two years, effective Jan 1, 2010.

15. An allocation of RM100 million for the PERMATA Programme to implement various programmes which emphasise early childcare and education in an integrated and organised manner.

16. Micro insurance and Takaful coverage for small-scale businessmen which will benefit from coverage ranging from RM10,000 to RM20,000 with premium as low as RM20 per month.

17. Establishment of 14 Special Corruption Sessions Courts and four Special Corruption Appeal High Courts.

18. Imposing RM50 service tax on each principal credit card and charge card, including those issued free of charge, and a service tax of RM25 a year on each supplementary card effective Jan 1, 2010.

19. All ministries and government departments are required to provide day care and education centres for children. For this, an allocation of RNM200,000 will be made available for every ministry and government department to establish day care centres.

20. Reduction of the maximum individual income tax rate from 27 percent to 26 percent, effective from the year of assessment 2010.

21. Personal relief for individual tax payers to increase from RM8,000 to RM9,000 effective from the year of assessment 2010. This means that each individual tax payer will enjoy an increase of RM1,000 in disposable income.

22. About 50,000 hardcore poor households registered with eKasih and 4,000 Orang Asli households will be given assistance to achieve the target of zero hardcore poverty in 2010. An allocation of RM41 million will be provided to improve the income and quality of life of the Orang Asli community.

23. An allocation of RM48 million to implement urban poverty eradication programmes, including welfare assistance and house rental payments. The Ministry of Federal Territories shall now be known as the Ministry of Federal Territories and Urban Wellbeing.

24. The National Housing Department to provide 74,000 low-cost houses to be rented in 2010.

25. EPF to launch a scheme that enables contributors to utilise current and future savings in Account 2 to enable them to obtain higher financing to buy higher value or additional houses.

26. An allocation of RM224 million to the disabled for the implementation of the Rehabilitation In The Community Programme and an allocation of RM174 million for senior citizens, including assistance as well as the construction and upgrading of two Rumah Seri Kenangan.

27. Increasing the allowance rate from RM50 to RM150 a month for every disabled child enrolled in NGO-organised special schools effective Jan 1, 2010.

28. Establishment of 1Malaysia Retirement Scheme for the self-employed, such as taxi drivers, hawkers, farmers and fishermen, to be administered by the EPF.

29. Effective immediately, employees’ EPF contribution will revert to 11 per cent on a voluntary basis.

30. Construction of 510 km of rural roads and 316 km of village roads with an allocation of RM857 million, including roads to be constructed in Kapit, Lawas and Simunjan in Sarawak as well as Kinabatangan, Kota Belud and Keningau in Sabah.

Ooh, isn’t it exciting and profitable times to be in?

First, the Terengganu state government offers couples on the verge of divorce an all-expenses paid trip worth RM1,500 for 3 days and 2 nights together with marriage counselling! (source)

Then, now, the UMNO Youth has proposed for the Government to give the following goodies (source):

• A one-off gift of RM200 for every firstborn as an initial deposit to the National Education Savings Scheme Fund.
• A special discount for the purchase of national cars to first-time parents who have yet to own a car.
• Housing loans with the lowest interest rates for the first few years upon marriage so that newlyweds could afford their own home.
• Vouchers to parents with infants for purchases such as milk and diapers.

It is interesting and certainly a way to garner further support from the people. While it is a far cry from the thousands offered by the Singapore Government for every child born, it is nevertheless a good start in the right direction if it is approved.

However, whether this is a hint of good things to come in the coming Budget or whether it is a political move to regain flagging support, remains to be seen.

The recent demands by the Indonesian government to increase maid’s salaries to RM800 a month hit a raw nerve in most parties especially those who are heavily dependent on foreign maids. It is a big jump, almost double, from what the maids are currently being paid and would certainly put a hefty dent in most families’ budgets. Read on below for the concerns raised and indirect impact this would have on the average man on the street.

Mothers To Quit Working?

Most city women work and unfortunately, there is a new generation of children who are being brought up by these foreign maids instead of their own mothers. At the current rates of RM500 or less, it still makes economic sense for the mother to work. However, at rates of RM800 a month coupled with agency fees, some parties are arguing that it might be more economical for mothers not to work. From a non-financial perspective, it is better for the children, however from a financial view, household incomes would likely drop and so would the overall workforce.

Higher Costs of Living?

Currently, lots of hawkers and restaurants employ these Indonesian maids as they are cheap, speak Malay and many have even picked up Mandarin and Cantonese! In fact, order from your favourite stall in a hawker centre or coffee shop and chances are, that char kuey teow you ordered was fried to perfection by an Indonesian worker! At RM800 per month, most stall owners and coffee shops would likely pass on the wage increase back to the customers by increasing the costs of their food and drinks. Ultimately, the pockets of the man on the street are hit once again!

Minimum Wage For Malaysians?

To date, there is no minimum wage for Malaysians despite many parties concerted efforts to fight for one. Some workers in Malaysia are paid only RM350 to RM400 a month which is way below what the minimum survival rate is at RM750 to RM800 per month. These are workers who need to pay for food, lodging and transportation compared to a maid who gets all that for free from her employer. The maid’s RM800 a month is almost net! If there is a move to increase salaries, shouldn’t the local workforce be considered first before bowing to the demands from Indonesia?

Ultimately, the reason why Indonesia can make these demands is because the country is dependent on their maids. Instead of relying on maids, all parties and employers should look into how they can assist their employees by providing more reliable child care and nurseries. After all, these are tax-deductible and most employees would certainly prefer leaving their children in their company’s child care as opposed to a maid. It will be interesting to watch how this wage demand unfolds and how the man on the street will ultimately be affected.

Today is the day that RON 95 petrol is made available to all motorists at a cheaper rate compared to RON 97. RON 97 previously used to retail at RM1.80 before RON95 was introduced.

I recall that when it was announced, the RON 95 was supposed to retail at RM1.75 per litre while the RON 97 price was going to be pushed up to RM2.00 per litre. However, when it was launched today, the price of RON95 has already been hiked up by a further 5 sen to now retail at RM1.80.

The newly introduced RON95 fuel is now selling at RM1.80 – five sen higher than its previous price. (source)

RON 97 is now considered premium fuel and will be sold at RM2.05 per litre from the previously agreed RM2.00 per litre. This price used to be for special fuel with additives such as V-Power which really does give your car that extra boost of power but now we’re paying the same for RON 95 instead which has no added chemicals to clean your engine and make your car faster.

So what are Malaysians ending up with now? We’re paying the same price we used to pay for petrol but for a lower grade petrol. Savings? I’m not sure…what do you think?

Credits

When the financial crisis first happened, many were aghast at how investment banks could pay huge fat bonuses and paychecks to their young bankers whom many blamed for causing the collapse of the investment banking industry with their creative packaging of financial instruments.

As bonuses and fat paychecks of bankers start coming to light, it is refreshing to see some are starting to take unprecedented cuts in their salaries in a bid to save their institutions and companies. Read on to see how much Yahoo’s out-going CEO, Jerry Yang, was paid.

Yahoo’s Jerry Yang Paid US$1

In his final year as CEO of Yahoo, outgoing Jerry Yang’s annual compensation was revealed at US$1! This was the same for Apple Inc. CEO Steve Jobs and Google Inc. co-founders Larry Page and Sergey Brin who also worked for US$1 in 2008.

Macquarie’s Group Chief’s Pay Slashed By 99%

In another move, the remuneration of Macquarie Group Ltd’s chief executive, Nicholas Moore, has been slashed by almost 99 per cent because of the slump in the investment bank’s profit and share price. This means he was paid a measly annual remuneration of A$290,756 compared to the whopping A$26.75 million he received in the previous year!

Should we sympathise for them?

Not quite! Jerry made huge money with Yahoo stocks and if the Macquarie Group Chief had been enjoying such payouts previously, he definitely can afford to take this cut.

However, we should at least commend them for taking this move instead of continuing to take huge bonuses from taxpayers’ money as in the case of the AIA US$165 billion bonus payout from the US$180 billion bailout.

Credits

The global financial crisis that sent the world economies into a downward spiral has almost been forgotten in the wake of the recent A(H1N1) flu virus sweeping across the world.

However, rich learnings have come out of that crisis and lest we forget, read below for the most important lessons from the financial crisis highlighted by billionaire Warren Buffet and Charlie Munger.

Important Lessons From The Financial Crisis By Warren Buffet

• Companies should borrow less.
• Banks should be performance driven by having severe disincentives for failures and proper incentives for success.
• Intense regulation may not always help as Fannie Mae and Freddie Mac were heavily regulated before their collapse.
• There should be reforms in the accounting profession to avoid the wrong message of high profits presented before a company collapses.
• People should leverage less and own less debt – that includes your credit card and loans.
• People should educate themselves to avoid buying financial instruments they do not understand.

Will these lessons help prevent another financial crisis in the future? Its hard to say, as long as human beings continue to be greedy in their pursuit of money.

Credits

The recent swine flu that started in Mexico City has put all nations on alert as the death toll and numbers of infected people continue to rise all over the world. So far, 113 cases of the swine flu has been confirmed in US, Canada, Spain, New Zealand, UK and even Israel from its original hotbed of Mexico. Now, health experts are predicting that it might be starting to emerge in Asia as the World Health Organisation recently raised its alert levels from three to four on its six-level scale.

As the world rushes to contain it from spreading into a pandemic, it is scary to note that not even the economy is spared from this health scare in our interlinked world. Read below to understand how badly the ailing world economy can be further affected if the swine flu spread into a pandemic.

Impact Of The Swine Flu On The Economy

• Travel alerts have been issued all over the world which will only hurt an already beaten airline industry and all related industries in the hotel, restaurant, transportation and shopping lines.
• Increased airport checks and security measures will deter more people from traveling and increases medical and monitoring costs for all countries.
• Stores, schools and businesses forced to close to avoid containment squeezes economic growth.
• Economies dependent on tourism, such as New York or New Zealand, will be badly hit as their main source of income starts to decline.
• Avoidance of crowded areas such as shopping malls or games causes a drop in consumer spending and shrinking of the local economies.
• Banning of pork products from affected countries will further affect their agricultural economy, especially if it is their primary industry.

How bad can it get if the swine flu worsens to a pandemic level? The World Bank has some figures below which are staggering especially for a world economy that is still valiantly fighting its way out of a recession.

If there’s a pandemic on the level of the 1918 “Spanish” flu, a 2008 World Bank analysis says, it would cost the world economy $3.1 trillion and drop the world’s gross domestic product by 4.8 percent in the first year of infection.A pandemic like the less severe 1957 “Asian” flu would reduce global GDP by 2 percent, The World Bank concluded, while a pandemic like the most recent 1968 “Hong Kong” flu would cut world economic output by just under 1 percent. (source)

Economically, there couldn’t have been a worst time for this health scare to hit the world. Hopefully, international health experts will be able to contain it to controllable levels. In the meantime, do try to stay healthy with these flu preventive tips.

New Malaysian Cabinet

Prime Minister Datuk Seri Najib Tun Razak’s new Cabinet will have 28 members. Two ministries have been abolished.

Prime Minister and Finance Minister 1 Datuk Seri Najib Tun Razak

Deputy PM and Education Minister Tan Sri Muhyiddin Yassin

Ministers in Prime Minister’s Department
Unity Dr Koh Tsu Koon
Law and Parliament Datuk Seri Mohamed Nazri Aziz
Religious Affairs Brig. Gen. (Rtd) Datuk Jamil Khir Baharum
Economic Planning Unit Tan Sri Nor Mohamed Yakcop

Finance
Datuk Seri Najib Tun Razak
Deputies: Datuk Chor Chee Heung, Datuk Dr Awang Adek Hussein

Education
Tan Sri Muhyiddin Yassin
Deputies: Datuk Wee Ka Seong, Datuk Puad Zarkashi

Transport
Datuk Seri Ong Tee Keat
Deputies: Datuk Abdul Rahim Bakri, Datuk Robert Lau

Home
Datuk Seri Hishammuddin Hussein
Deputy:: Datuk Wira Abu Seman Yusop

Information, Unity, Culture and Arts
Datuk Seri Dr Rais Yatim
Deputies: Datuk Joseph Salang Gandum, Heng Sai Kee

Energy, Green Tech & Water
Datuk Peter Chin Fah Kui
Deputy: Noriah Kasnon

Plantation Industries and Commodoties
Tan Sri Bernard Dompok
Deputy: Datuk Hamzah Zainuddin

Rural and Regional Development
Datuk Shafie Apdal
Deputies: Datuk Hassan Malek, Datuk Joseph Entulu

Higher Education
Datuk Seri Khaled Nordin
Deputies: Dr Hou Kok Chung, Saifuddin Abdullah

International Trade and Industry
Datuk Mustapa Mohamed
Deputies: Datuk Muhkriz Mahathir, Datuk Jacob Dungau

Science, Tech and Innovation
Datuk Dr Maximus Ongkili
Deputy: Fadillah Yusof

Natural Resources and Environment
Datuk Douglas Unggah Embas
Deputy: Tan Sri Joseph Kurup

Tourism
Datuk Seri Dr Ng Yen Yen
Deputy: Datuk Seri Sulaiman Abdul Rahman Abdul Taib

Agriculture and Agro-based industries
Datuk Noh Omar
Deputies: Johari Baharum, Rohani Abdul Karim

Defence
Datuk Ahmad Zahid Hamidi
Deputy: Datuk Dr Abdul Latif

Works
Datuk Shaziman Abu Mansor
Deputy: Datuk Yong Khoon Seng

Health
Datuk Seri Liow Tiong Lai
Deputy: Datuk Rosnah Rashid Shilin

Youth and Sport
Datuk Ahmad Shabery Cheek
Deputies: Datuk Razali Ibrahim, Wee Jeck Sing

Human Resource
Datuk Dr S. Subramaniam
Deputy: Datuk Maznah Mazlan

Domestic Trade and Consumer Affairs
Datuk Seri Ismail Sabri
Deputy: Datuk Tan Lian Hoe

Housing and Local Government
Datuk Kong Cho Ha
Deputy: Lajim Ukin

Women, Family and Community Development
Datuk Seri Shahrizat Abdul Jalil
Deputy: Datin Paduka Chew Mei Fun

Foreign Affairs
Datuk Anifah Aman
Deputies: Lee Chee Hong, A. Kohilan

Federal Territory
Datuk Raja Nong Chik Zainal Abidin
Deputy: M. Saravanan

Hopefully with this new Cabinet, we can look forward to an improved economy and better investor confidence.

Photo credits

Unemployment and job retrenchment is a real threat in today’s global recession. No one is spared from it, not even doctors.

“Many doctors, irrespective of whether they are in the government or private sector, are very keen to earn extra income these days.” (source)

It is important to hang on to your jobs but if the inevitable announcement comes, what can you do? Here are some tips to help you cope should you be retrenched or given a severance package by your company.

Talk To Your Family

Don’t hide it from your loved ones. Don’t cut them out. If you do, they will be equally powerless to help or support you. Although they may not be able to help financially, their solid support is equally important for your emotional strength which you will need to see you through this period.

Assess Your Financial Situation

Sit with your partner to discuss your existing financial situation. Discuss how best you can utilise your savings and investments to avoid defaulting on your mortgage. Plan how long your funds might be able to last you and where you have to start cutting back on. If your partner is working with a steady income, openly discuss how you can maximise that monthly stream of income to help tide this period over.

Don’t Be Afraid To Ask

Don’t let your ego cloud you from asking for help, if you need it. Ask. You may find your friends and family are ever ready to help and support you. Just sharing your frustrations and fear with someone would be better than bottling it up inside.

Be Prepared To Do Anything

If you have been retrenched, you can’t afford to be picky about future opportunities. Take advantage of whatever job options you have, even if it pays a lot less than your previous job. Every new job will give you added confidence and increased self-esteem to rebuild your career again.

Think Positive

This may not be easy when your whole world seems dark without any hope. However, only you can motivate yourself best so search for your inner strength and start each day with a positive thought. Read positive and motivational books to fill yourself with positive feelings and thoughts. It will do wonders for your self-confidence.

Upgrade Your Skills

Part of the Malaysia RM60 billion Stimulus Package included the establishment and upgrading of new job centres. Make use of these facilities to upgrade your skills and to look for job opportunities. Make use of the retraining programmes offered by the Government in the same Mini Budget to make yourself more marketable.

Retrenchment and unemployment is something everyone hopes they will never have to face. However, if the axe has fallen, be positive and strong. You will be able to come out of it again.

It is official. Malaysians have been told to brace themselves for tough times ahead. Despite previous reassurances that “we are not in a recession”, the underlying message from the RM60 billion stimulus package is that a recession might be just looming right outside our door.

Malaysia, like the rest of the world, has made changes to its own forecasts, expecting growth this year, even with the stimulus package, to be between -1% and +1%. The fall has become faster than what has been expected. If we avoid the recession this year, it will be only narrowly.

The RM60bil is to stop the slide but even with the money, many see the situation as touch and go. (source)

The launch of the mini budget yesterday seemed to hold more carrots for corporate Malaysia as opposed to the man on the street. However, there are still ways you, as an individual, can benefit from the Malaysian RM60 billion stimulus package. Read below for ways the budget might help the rakyat.

How Individuals Benefit From The Stimulus Package

• Issuance of RM5 billion savings bonds offering annual returns of 5% – With the fixed deposit rates hovering below 3%, this might provide an investment alternative for Malaysians to earn a slightly better interest rate on their money.
• Subsidies of RM674 million in prices of necessities – Hopefully with these subsidies in place, basic ingredients such as sugar, wheat and bread will not see a spike in prices.
• RM480 million to ensure toll rates do not increase - As Malaysia is a country where most of its non-jammed roads are only accessible by paying toll, this is indeed a good move although abolishment of toll would have been a better move.
• Opportunities for Post Graduate Study - RM20,000 and RM10,000 to be provided to students pursuing PhD and Master programmes locally.
• RM700 million to provide training and job placement opportunities – Local employees skills are to be enhanced with the intention of reducing dependencies on foreign labour.
• Recruitment of 63,000 Civil Staff – This will be a welcome move for those who might have been retrenched locally or abroad. Opting for a slightly lower pay with the Government will still be better than having no income source and job.
• Aid for the Poor – The poor have been given focus in this mini budget through subsidies, allocation of low-cost homes and upgrading of public infrastructure.
• RM1.95 billion for Improvement of Schools – Hopefully this sees better equipped Government schools and more conduicive learning environments for young Malaysians without the taint of politics.
• RM5,000 for cars over 10 years old - This applies only if one purchases a Proton or Perodua car.

Despite the mini budget and large amounts of money allocated to saving the economy, the budget does not seem to put much money in the pockets of the people to boost spending in the short term.

Some wishlist items many had such as tax breaks, increasing the tax-free income bracket, improving public transportation systems, flood mitigation and increasing the spending power of the people still remain as wishlist items for now.