Newspaper articles

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2 Newspaper articles

3 Newspaper articles

4 Newspaper articles

5 Newspaper articles

6 Newspaper articles

7 Newspaper articles

8 Newspaper articles

9 Newspaper articles

10 Establishment of AKPK

11 Financially Challenging Times Expenses Income/Real Return Susah cari wang!!! Gaji tak naik!!!

12 Purchasing Power of RM

13 Credit Cards

14 Who? > 21 years >RM1,500 income No adverse credit record

15 Sample of credit card statement

16 Benefits? Convenient Preferred Easy access for emergency Universally acceptable Earn Loyalty points

17 Tips? Max of 2 cards purchase and emergency Pay promptly don t pay just the minimum Stop charging if lost control cannot afford minimum payment Do not take Cash Advance Fraud - check all transactions

18 Tips? Avoid holiday hangover Use cash Look out for best deals annual Fees, late payment charges Don t Use Home Equity to Pay Off Credit Cards

19 Interest Free Period Billing Date 10/10 Payment Date 30/10 Next Billing Date 10/11 Next Payment Date 30/09 20 days Purchase Big Ticket Items. 20 days 10 days 20 days about 50 days

20 Losing control Pitfalls of Credit Cards Expensive credit if not paid in full promptly 1.5% charge on cash withdrawals per month on daily rest Cash advance fee - 1% or RM 50 (whichever higher)

21 Credit Period of 20 Days WEF 1 July 2008, credit cardholders who pay the minimum 5% or partial repayment will no longer enjoy the 20 day interest free period for new retail transactions

22 Category of Cardholders Pre 31/03/09 Post 31/03/09 Tier Definition ROI ROI 1 Pay min 5% > 12 mths 15.0% 13.5% 2 Pay min 5% > 10 <12 mths 17.0% 16.0% 3 Outside of 1 & 2 above 18.0% 17.5%

23 Late Payment Fee PRE 31/03/09 WEF 31/03/09 WEF 01/07/09 Min RM10/- or 1% of O/S balance, whichever is higher subject to max of RM100/- Min RM5/- or 1% of O/S balance, whichever is higher subject to max of RM75/- Min RM5/- or 1% of O/S balance, whichever is higher subject to max of RM50/-

24 5% Min Payment Per Month RM1,000 RM2,000 RM4,000 RM500 RM10K RM20K RM40K RM80K DEBT 95% RM9,500 RM19,000 RM38,000 RM76,000

25 8 million cards Some Statistics Av 3.17 cards per pax 16% have > 3 cards 60% pay promptly NPL < 5% 57% of applications to AKPK are card related

26 Some Statistics 6% 15% 26% 2% 12% 25% 2% 12% % Description 26 High medical expenses 25 Poor financial planning 15 Lost control on credit cards usage 12 Failure/ slowdown in business 12 Lost job/ retrench 6 Others 2 Failed investment 2 Death and/ or loss of Breadwinner 100

27 SOLUTIONS

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29 Nobody plans to fail, many, however, fail to plan. William A. Ward

30 Live Within Our Means?

31 What & How? Steps Action Do s Don'ts 1 Be Aware of Our Means Start from our net take home pay Include available credit in our CC

32 Savings for Most People Net income less Expenditure = SAVINGS Choose to be different from most people TODAY!!!!.

33 RM Gross Income 2,500 Less: EPF % SOCSO 15 Net Salary 2,210 SAVINGS % Expenditure 1,990 Salary Slip 1

34 RM Gross Income 2,500 Less: EPF % SOCSO 15 Housing Loan 600 Vehicle Loan %* Co-operative Loan 100 1,060 SAVINGS % Expenditure 840 Salary Slip 2 * > 33% gross income 2nd job, wife work, rent out room, or cut down expenditure or combination

35 FIXED EXPENSES Emergency Buffer Fund [EBF] 1. Rental/ Housing Loan Vehicle Loan Maid s pay Groceries Bas sekolah/ Transport Tuition fees etc 200 Sub-total 2,800 VARIABLE EXPENSES 1. Electricity, Water & Gas Clothing Entertainment etc 100 Sub-total 500 TOTAL 3,300 EBF:RM3,300 x 6 months = RM 19,800 RM

36 FACTS Malaysians do not save enough and are not financially prepared in event of loss of income/job 2/5 individuals (39%) save regularly <1/3 individuals (28%) prepare & follow budget 21% have their savings last for only 4 weeks

37 Budgeting helps you to plan better financially Write down your monthly income Determine total monthly expenses Set-aside for emergency and seasonal expenditures If no surplus for savings, Review spending habit Reduce unnecessary expenses

38 Budget and Cash Flow Statement INCOME Salary/Allowances/Commission/Rental Less EBF ( 6 months exp) Less Saving (min 10% of NI) Total Income EXPENSES Budget ACTUAL EXPENSES MONEY IN A MONEY OUT Savings HL/Mortgage Hire Purchase Loan - Car Food & Beverages Clothes Personal Expenses Utility Bills Entertainment Credit card payment Others SURPLUS/ DEFICIT Total Expenses B 38

39 Financial Planning Rule of Thumb Percentage of Net Income 10% - savings 20% -30% - credit payment 60% - 70% - living expenses Example: If gross income is RM3,000, allocation for credit repayment (mortgage, hire purchase, credit card) should not exceed RM1,000 39

40 Money Saving Moves Eating more at home; Packaging breakfast/lunch from home; Optimizing facilities provided by one s employer e.g. consuming beverages and snacks provided by employer rather that spending at the mamak stall ; Cooperate with relatives/friends to buy things cheaper in bulk;

41 Money Saving Moves Using public transport; Car pooling; Explore option of working from home save transport; Plan Journeys optimize travel complete all errands in one trip limit trip to market/ supermarket;

42 Money Saving Moves Reading news via internet instead of papers; Reducing if not eliminating cable TV channels; Reduce excesses on electricity, water & phone charges; Store rain water to water plants; Get family to watch DVD instead of going to the cinema; Do banking via the internet;

43 Money Saving Moves Local instead of foreign holidays; Cut back/eliminate smoking, clubbing etc; Cancel health club subscriptions & exercise outdoors.

44 Needs vs Wants X 8 RM3 RM 24

45 LIVING WITHIN YOUR MEANS

46 Monthly Cost of Maintaining a Viva # Fixed Cost RM Remarks 1 Installment 330 RM 3.7% for 7 years 2 Insurance 67 RM 800/12 3 Road Tax 2 RM20/12 Sub - total 399 Variable Cost 1 Petrol Service etc 50 RM 600/12 3 Parking/Toll etc 30 Sub - total 280 TOTAL 679

47 What & How? Steps Action Do s Don'ts 5 Managing Debt Wisely Stay away - if possible Pay back soonest Treat available credit as your income

48 DEBIT CARD Prepaid Card Used like a credit card Money comes from own saving (No debts or credit) No Interest charged Minimal processing fee or Non 48

49 Getting Out of Financial Challenges

50 Getting Out of Financial Challenges Signs of financial challenges Solutions Prayer helps, but one must first decide to help onerself.

51 Signs That We Are Financially Challenged Living on paycheck to paycheck Servicing 5% on credit card Cash advances financing expenses No savings to meet emergencies Debt collectors calling Legal notice of demand

52 Failure in Managing Debts 1. Legal Notices 2. Summons and Statement of Claim 3. Mention 4. Judgement 5. Execution of Judgement Writ of Seizure & Sale (WSS) Judgement Debtor Summons (JDS) Bankruptcy action Foreclosure

53 BNM CCRIS Report

54 Solutions 1. Be positive 2. Act 3. Get - AKPK 4. Bankruptcy IS AN OPTION 5. Is being a bankrupt the END? To get out of the well, we must first stop digging.

55 Restrictions on a Bankrupt Public Office AJK Conduct Business Travel Overseas Legal Action Magistrate * Director* * Only against personal injury Session Court Judge Town Councilor Local Councilor MP/ADUN* Management* Employee** Borrow <RM1,000 Own Assets <RM5,000 * Without the approval of the DGI or Court ** Company owned by spouse or relatives.

56 Keratan Akhbar

57 Keratan Akhbar

58 Who & Where are We? 2003 Survey by United Nations

59 Ibu Pejabat Kuala Lumpur Aras 8, Maju Junction Mall 1001, Jalan Sultan Ismail Kuala Lumpur Toll free : Ipoh Unit B2-1, Greentown Square Jalan Dato Seri Ahmad Said Ipoh Perak Tel: Johor Bahru Bangunan Bank Negara Malaysia Jalan Bukit Timbalan Johor Bahru Tel: Kota Kinabalu Bangunan Bank Negara Malaysia Jalan Dato' Chong Thain Voon Kota Kinabalu Tel: Kuala Terengganu Bangunan Bank Negara Malaysia Jalan Sultan Mohamad Kuala Terengganu Tel: Alor Setar & Kota Bharu Kuantan G-02 Mahkota Square Jalan Mahkota Kuantan Tel: Kuching Bangunan Bank Negara Malaysia Jalan Satok Kuching Tel: Malacca No 179 Bangunan Munshi Abdullah Jalan Munshi Abdullah Melaka Tel: Pulau Pinang Bangunan Bank Negara Malaysia 27 Corner Light/Pitt Street Pulau Pinang Tel:

60 THANK YOU Make Prudent Financial Management A Way of Life Toll Free No: