What is Investment?

Investment is an important part in budgeting, a step to create a better future for you and your family. It refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns.

An investment involves the choice by an individual or an organization, after some analysis or thought, to place or lend money in instrument or asset, such as Cash Investments, Bonds, Stocks or Equities, Mutual Funds, Commodities, Real Estate and Financial Derivatives.

However, there is no profit making guaranteed in the process of investment. Investment comes with the risk of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owner's control.

Budget 2011 comments: Our Merdaka Our Stadium

Our Merdeka, our stadium

Praba Ganesan, TheMalaysiaInsider, October 21, 2010

OCT 21 — Freedom is in the heart, so tying it to a physical space may seem futile.
But the heart — the way we feel about things — is triggered by our senses, by what we see, touch, hear, taste and more.

Which is why the proposed desecration of the Merdeka Stadium zone in order to construct a 100-storey building is sheer madness. If Nero had a fiddle, well our PM has a hard hat and matching drill set.

First, the policy supporters might handily point out that the building will be adjacent, and therefore does not affect adversely the stadium — or the rapidly-decaying Stadium Negara.

I’ll contend on that affectation defence and its corollary purpose argument.

Walk up that hill, and see the space dynamics. It is a social zone.

No one wants to build a 100-storey commercial building encircled by not one, but two stadiums (three if you include Chinwoo stadium), the large compound of the oldest school in Kuala Lumpur (a heritage site), three mid-sized schools, a swimming pool, a basketball court building, a medium-sized police station with housing, churches and two Chinese temples — without fixing the surrounding to support it.

And in the extensions lie all types of complications, and yes other infrastructural investments.

The transport arteries, two monorails, one LRT station, a wide but congested Jalan Maharajalela, the idyllic Jalan Hang Jebat (Davidson) and nightmarish Jalan Hang Tuah (B.E. Shaw), which just got a flyover to ease the Edinburgh junction (well circle before), will be tested by the new traffic influx brought by the building and resultant commercial/residential constructs. And I’ll just not talk about Jalan Stadium. Should we tell the new MRT dudes that there has to be a heritage station, or are we just to consider that after the fact?

Unless you think your typical expat oil and gas would like to occupy a rent-controlled “rumah tumpangan” (motels) in Jalan Sultan, there is the housing issue. So where will the six-star heritage hotel and service apartments situate themselves?

There is the parking question. New large buildings will need parking and entry/exit points so they do inflict more misery to standing roads connected.

Already Stadium Merdeka’s parking lot acts as makeshift bus terminal for holiday periods, is that what it will be? A kinda old decrepit stadium with useful parking space.
And will the building have a shopping mall annex (Suria KLCC like) or are you going to ask the middle managers to have Hokkien mee at the Mirama Hotel?

The whole business of placing a gargantuan commercial property in a not-like type zone will produce a slew of uninvited infrastructure proposals. And the government will be hard-pressed to deny them, since it started the ball rolling.

And will my poor Stadium Merdeka seem like a commercial anachronism ready to be edged out in time for being out of topic with the new artificial zone? Just waiting for a PM to argue that a building to the sky is enough to remind us of our heritage?
And how about the spill-over effect to Kuala Lumpur? Is there a pressing shortage of office space, or one expected in the next five years?

Digging a hole to fill another hole will leave you another hole, elsewhere.
The 1998 diaspora from Dayabumi to Petronas (which is still after 12 years not with envious occupancy) left the latter with design without people and left that zone in a commercial time warp. Will there be a new migration to the new heritage building. Rent in such a building will be prohibitive unless you get your GLC tour truck to move there. What about the twin towers then?

Do they really believe if you build it they will come?

So then, to the why. Why we need a new skyscraper in KL?
Is it because there is no steady stream of visitors to Stadium Merdeka? The new high commercial-residential presence to prop up the forgotten site. I’ll instead ask for a stadium heritage board with funding to showcase the stadium. A restoration effort will show the world all that the stadium has gone through as the heartbeat of the city and country for almost 60 years.

Athens still keeps intact the first modern Olympics (1896) stadium, even if it cannot facilitate present-day sporting events.

Is it because no one knows where Stadium Merdeka is that a skyscraper will remind alien life-form its location?

I understand the economic innocence in our former living prime minister from Kedah that spending leads to economic growth. That is a truism. The real question is how much growth does any spending brings, and what long-term impact does it have?

Building a RM5 billion tower without investing in our people just means more of our working-class kids with no social mobility thanks to a stagnant education system end up as guards, cleaners and food servers in that skyscraper.

Is it because there is much dreariness all over the hill since the Commonwealth Games of 1998 when the area was earmarked for a “friend” to commercialise?

There are various modern pilgrimage sites — the Melbourne Cricket Ground, Flushing Meadows in New York, Brandenburg Gate in Berlin — which have low density and are sparse.

People go there because they are cultural zones. And culture is not measured by new construction. It is enhanced by modernity. They have activity zones, green lungs and places for introspection, not more of the concrete jungle.

I’ll donate a few chess sets if the police man the area with constables so the children can play — and the poets can have their quiet corners.

Spend money on public lavatories and water dispensers. The adjacent Taman Tunku Abdul Rahman, which has been boarded up for more than a decade, can be more than a junkie haven.

Melbourne’s Federation Square and access to East Melbourne with the Yarra providing the backdrop is an example of what we should aspire to. I understand a low new-construction renewal project emphasising restoration is not appetising for the construction cartel with so much say on how taxpayer money is spent.

You know who you are. You are not nameless to those who have memories and a resolve.
Never mind.

The area has to be living space for the soul. We have real thinkers who will have more than just a bunch of ideas to move on with the Merdeka air of the area.

Remember, Tunku Abdul Rahman went to the top of a hill where Chinwoo stadium sits now intent on picking a spot for the country’s first building in the mid-50s. Stadium Merdeka was to be Malaya’s first construction to represent its independence, to mark the occasion.

He looked around the old city and picked the plot of land next to Victoria Institution. Unfortunately, the construction of the stadium required part of the school’s parade ground and shooting range.

But it is there, today. How long we keep our stadium, well technically we decide.
It is the stadium of my father and many of yours. The greens around it are where the more modest Malaysian ate his “kacang putih” and waited for the turnstiles to open for a Merdeka Cup match.

The long walks from the various points in the city to and fro the stadium were a rite of passage for many. My school team thrashed the PM’s school in that stadium for the 1987 state football championship and we sang

“Are you sleeping Brother John?”

There are all these stories, and they are our stories.

The heritage building is the real Trojan horse leading to the annihilation of all that is old on that hill. It is not the celebration of our past, it will turn out to be the tomb for our past, and leave us with a series of developments that no one will remember fondly except those who build their immodest pension plans on the development contracts. Leave us with a poorer future.

That’s not Merdeka.

* The views expressed here are the personal opinion of the columnist.

Budget Talk and Economy Transformation Programme 2011

100 Free Tickets For BUDGET TALK 2011

100张入场券供索取

2011年预算案与新经济转型计划座谈会

Date:     23rd October 2010 (Saturday)

Time:     8.30am-1.00pm (English)

              1.00pm-6pm (Mandarin)

Venue:   Palace of Golden Horses

SMS registration by sending:

TimesAds invites <name>, <Co. Name>, <number of seats>,<H/P no.> to 012-7630039.

For more info, please go to 
http://www.moneycompass.com.my/?p=866

What Financial Planning can do on your Personal Budget? 理财规划的个人用途：如何做财务预算？

You won't be surprised that financial planning can help in making your personal budget. But how?

Especially for those who didn't really study econs or commerce in school, one's will keen to know the "abc" in financial planning that facilitate our budgeting.

无可否认，理财规划是个人财务预算的重要手段。
但是如何进行？特别是在没有咨询任何专家的情况下。

Financial planning is a process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals. 

必须认清四点：个人设定的财务目标，拥有的资产和资源，估计未来的财政需要，策划个人的经济预算。
Your financial priorities change as you age and during different phases of your life. Careful planning can help individuals and couples set priorities and work steadily towards long-term goals. It may also provide protection against the unexpected, by helping individuals prepare for things such as unexpected illness or loss of income. 

理财规划的范围：包含税务策划，投资策划，保险策划，退休策划，遗产策划，现金流管理，教育计划，房贷计划和债务重组等等。

理财规划的重要：分析目前家庭经济状况，实现家庭经济资源的最优化配置。

也就是目前家庭经济状况下，怎么尽早实现家庭的梦想（如解决经济拮据，买车，买房，孩子的教育，百万富翁的梦想，安享晚年或留下大笔遗产）。

Malaysia Budget 2011 Review

Total budget – RM212 billion, 2.8% higher than the 2010 Budget

Operating expenditure – RM162.8 billion

Development expenditure – RM49.2 billion

• 2010 growth revised to seven percent compared to six percent previously, fuelled by private investment growth (15.2%), private consumption (6.7%) and exports (11.6%)

• 2011 growth expected to hover between five to six percent supported by private investment (10.2%), private consumption (6.3%) and exports (6.7%)

• 2011 per capita income expected to go up 6.1% to RM28,000, while income in terms of purchasing power parity will hit US$16,000, tempered by moderate inflation (2-3%) and low unemployment (3.5%)

• Budget deficit is expected to go down to 5.4% of GDP, compared to 2010 figure of 5.6%

• Federal government revenue is estimated to increase 2.3 percent to RM165.8 billion in 2011, compared to RM161.1 billion in 2010

• Private investment to expand 12.5% to RM86 billion.

Highlight points in the Malaysia budget for 2011 :

Emphasis on Public-Private Partnership (PPP) projects

* RM12.5 billion worth of public private partnerships (PPP) will be implemented under budget 2011, with a RM1 billion facilitation fund from the government.

* The Mass Rapid Transit project is to be implemented beginning 2011 with a private investment of RM40 billion and is targetted to complete by 2020.

* The Academic Medical Centre, a joint-venture between Academic Medical Centre Sdn Bhd and John Hopkins Medical International as well as Royal College of Surgeons, Ireland, that will involve private investment of RM2 billion

* Development of an International Islamic University Teaching Hospital in Kuantan and a Women and Children’s Hospital

* The construction of a 300MW combined-cycle gas power plant in Kimanis, Sabah.

* The construction of highways such as the Ampang-Cheras-Pandan Elevated Highway.

RM5 Billion New Tower in KL

* A new landmark, the Warisan Merdeka, to be developed by Permodalan Nasional Berhad (PNB), is expected to be completed in 2020 and will include a 100-storey tower, the tallest in Malaysia, which is to be completed by 2015.

* It will stand on land adjacent to Stadium Merdeka and Stadium Negara. Both stadiums are to be retained as national heritage sites.

EPF to fund Sungai Buloh Development

* Development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres will be funded by EPF with RM10 billion over 15 years.

* EPF overseas investments will be increased from seven percent to 20 percent of total assets managed.

Investments

* GLICs (government-linked investment companies) will divest shares in major companies listed on Bursa Malaysia to increase liquidity and trading velocity.

* An International Board will be added onto Bursa Malaysia to increase foreign investment, especially to promote syariah-compliant products.

* The Bumiputera Property Trust Foundation will be launched to enhance bumiputera ownership of prime commercial properties in urban areas.

Corridor projects not forgotten

* Corridor and regional development will be accelerated with an injection of RM850 million.

* sarawak corridor of renewable energy score project 110208 data mapRM93 million will be allocated for Sarawak Corridor of Renewable Energy.

* RM133 million for Northern Corridor Economic Region.

* RM178 million for projects in East Coast Economic Region.

* RM339 million for Iskandar Malaysia in Johor.

New Private Pension Fund

* To revitalise capital market activities, the government will launch a Private Pension Fund in 2011.

* The existing income tax relief of up to RM6,000 for employees’ contributions to EPF will extend to Private Pension Fund contributions.

Funds to help businesses

* A RM146 million fund will be set up to support the oil, gas and energy industry.

* RM857 million will be allocated for local E&E (electrical and electronic) companies to compete at the international level.

* To help entrepreneurs that face financial problems, the Insolvency Act will be consolidated with the Bankruptcy Act 1967 and Part 10 of the Companies Act 1965, including the introduction of a provision relating to a relief mechanism for companies and individuals with financial problems. A review will also look to amend the current minimum bankruptcy limit of RM30,000.

Tourism

* RM100 million will be allocated to support the tourism industry.

* RM50 million to construct several shaded walkways in the Bukit Bintang-KLCC vicinity.

* A RM3 billion eco-nature resort Nexus Karambunai in Sabah will commence in 2011.

* RM85 million will facilitate construction of hotels and resorts in remote areas.

IT Development

* The Multimedia Development Corridor programme will be allocated RM119 million. Focus will be on creating an innovative digital economy.

* Import duty and sales tax exemption on broadband equipment will be extended for two years until 2012.

Minimum Wage

* A National Wage Consultation Council will be set up to determine the rate and mechanism of minimum wage for various sectors.

* The basic minimum wage for security guards is to go up to between RM500 and RM700 depending on location, compared to RM300 to RM400 previously.

* Fully-paid maternity leave for civil servants is to increase to 90 days compared to the previous 60 day.

* Levy on foreign workers is to increase in stages according to sector. Health insurance for foreign workers is now mandatory.

Training

* The Talent Corporation is to be set up under the Prime Minister Office in early 2011, that will formulate the National Talent Blueprint.

* A target to increase PhD-qualified academic staff to 75% in research units and 60% in other public institutions of higher learning.

* The 1Malaysia Training Programme will be launched in January 2011 with an allocation of RM500 million.

Sabah and Sarawak

* RM2.1 billion will be allocated to upgrade rural roads in Sabah and Sarawak, compared to RM696 million for Peninsula (Semenanjung) Malaysia.

* RM1.5 billion will be allocated to develop rural electricity and water supply in Sabah, with RM1.2 billion for Sarawak and RM556 million for Semenanjung Malaysia.

Allocation for Ministries

* RM15.86 billion will be allocated for the Prime Minister’s Department. The allocation was RM14 billion in 2009 and RM12 billion in 2010.

* RM29.3 billion for Education Ministry.

* RM10.2 billion for Higher Education Ministry.

* RM1.2 billion for Women, Family and Community Development Ministry.

* RM627 million for Human Resources Ministry.

* RM111 million for Permata (Pusat Anak Permata Negara).

Other salient points

* azlanThe scheduled hike in toll charges for four highways owned by Plus Expressways Bhd will be frozen for the next five years.

* A RM500 Special Financial Assistance for Civil servants Grade 54 and below, including contract officers and retirees. Payment will be made in December 2010.

* Maximum housing loan eligibility for civil servants will increase to RM450,000 from RM360,000.

* First-time homeowners will enjoy a 50 percent discount on stamp duties for homes below RM350,000.

* Young adults of household incomes under RM3,000 will be assisted through a first-home owner scheme where the government will guarantee a 10% down payment for homes below RM220,000. This means that house buyers will obtain a 100% loan without having to pay the 10% down payment.

* Malaysian permanent estate workers will get a maximum RM60,000 housing loan to buy low-cost houses at four percent interest rate, with a repayment period of 40 years extending into the second generation.

* Sales tax for mobile phones will be reduced by 10 percent.

* RM350 million will be allocated to boost efforts to cut down the crime index, and establish 25 special courts to expedite prosecution.

* Full import and excise duties exemption granted to franchise holders of hybrid cars will be extended to Dec 31, 2011. It extends also to electric cars and hybrid and electric motorcycles.

* Import duty on approximately 300 goods preferred by tourists and locals, currently at 5% to 30%, will be abolished.

* Service tax will be increased from 5% to 6%. The government proposes to impose service tax on paid television broadcast services.

* azlanThe excise duty exemption on national vehicles purchased by the disabled will go up to 100 percent from 50 percent previously.

* RM200 million will be allocated for the Distribution of Essential Goods programme, on top of the RM100 million allocation under budget 2010, to standardise prices nationwide for goods such as rice, cooking oil, sugar, flour, gas, petrol and diesel.

* 375 native English speakers is to be recruited from United Kingdom and Australia to improve the teaching of English.

*Monthly allowance of community leaders (JKKK, village heads, Tok Batin, etc.) is to be increased to RM800 from RM450. Meeting attendance allowance is also increased from RM30 to RM50.

*Imams’ allowance will be increased from RM450 to RM750, KAFA (religious school) teachers’ allowance also goes up to RM800 from RM500.

* RM1.9 billion will be allocated for environmental projects, including for the River of Life programme and the greening of Kuala Lumpur.

* A points system is to be introduced to facilitate permanent resident status applications, and applications can be made after five years of residence compared to 10 years previously.

Source: Malaysiakini.com

Budgeting: you save if you plan 财务预算: 计算过去，规划未来

Budget is a plan for saving and spending. A personal budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment.If you don’t know how much money you have coming in and where it goes, your road to financial success will be a difficult one.

财务预算是支出与收入的预先规划。参照之前的收支款额，预定将来的开销和花费，尽量在个人财务方面扣除基本消费，取得每月盈余，作为投资、还债或储蓄之用。

The following sample illustrates how income might be allocated.

 

你一定知道一个月赚多少；但是如果你不曾好好预算过这个月内你的花费是多少，你可能还是陷在财务困境里；如果你不曾分析过你的钱用在哪里，那么离开财务自主和迈向个人经济成功之路就远了。

Creating a budget is incredibly difficult, but where most people fail is trying to maintain the budget.财务预算虽然困难，最困难的却是如何真正去执行它。

5 steps to create a Personal budget（1） 个人预算加减法_5个步骤

CREATE A BUDGET PLAN

1. write down your fixed expenses (house payment/rent, utility bills, insurance premiums).

2. under your fixed expenses, write down all of your basic needs expenses (food, gas, clothing, toiletries, etc.)

3. add all of these amounts together and subtract from your total monthly paycheck. The amount that is left is what you actually have to work with in terms of budgeting.

4. list all of your remaining purchases for the month; every single thing you spent money on down to the smallest detail. Be honest. Every cup of coffee, every newspaper or magazine, every candy bar from the vending machine, every meal you ate at a restaurant, your pedicure, manicure, make-up, etc. Make sure you write down every single item.

5. add up the amount you spent on all of those items and subtract that amount from the amount you had left for budgeting. How much did you spend? If you are being completely honest about every single thing you purchased during a month’s time, the amount you come up with will probably be a big surprise.

制定预算计划

首先，记下你的固定支出（房款或房租，水电费，保险费）。

第二，在你的固定支出范围内，写下你所有的基本需要支出（食物，汽油，衣服，洗漱用品的花费等等）。

第三，将这些金额合计然后将得到的总额从你每月的薪水中扣除。从预算方面来说，你真正要精打细算的就是剩下的金额了。

第四，将你余下的每月需购买的东西列成清单；你花钱买的每一样东西，甚至具体到最微小的细节。要如实地记录。每一杯咖啡，每一份报纸或杂志，从自动售货机买的每一根棒棒糖，你在餐馆吃的每一顿饭，你修理脚趾甲，手指甲和化妆的花费等。确保你记下每一样东西。

第五，将买这些东西的金额相加然后从你的预算里剩下的余额中扣除。你花了多少钱？