Lowyat.NET: Latest topics by Weldon29

Raising debt in Malaysian household

Weldon29 — Tue, 02 Apr 2013 11:58:11 +0800

For Malaysians, a monthly juggle to escape credit card debt trap

KUALA LUMPUR, April 2 — Despite several optimistic views of the economy for 2013 and beyond, Malaysians are struggling to save while attempting to clear off mounting debts as the country flirts below the 55 per cent debt-to-Gross Domestic Product (GDP) ratio ceiling.

The rosy economic view comes ahead of Election 2013 but economists have expressed concern with Malaysia’s ballooning ratio of household debt to its GDP that hit 80.5 per cent last year, pushed mainly by credit card and personal debts.

“It’s because Malaysian households now are very keen on borrowing money,” said Malaysian Institute of Economic Research (MIER) executive director Dr Zakariah Abdul Rashid, explaining the main cause for the nation’s rising household debt.

He said that Malaysia’s household debt-to-GDP ratio was one of the highest in the region, although some other countries have racked over 100 per cent.

Malaysia’s household indebtness has steadily increased from 75.8 per cent in 2010 to 76.6 per cent in 2011, and to 80.5 per cent last year, prompting calls for vigilance from financial analysts in the region.

“One of the reasons is lifestyle ... they fall into the trap because of poor financial planning,” said Mohamed Khalil Jamaldin, head of corporate communications from the Credit Counselling And Debt Management Agency (AKPK).

Khalil explained that 25 per cent of the around 84,000 people who enrolled for AKPK’s debt management programme fell into that category, which includes overspending and failure to pay the minimum monthly amount.

Credit card debts

Advertising and design entrepreneur Samantha Fong (not her real name), 36, was one such debtor, after she and her husband incurred debts of about RM10,000 and RM20,000 each two years ago from an unfortunate business loss.

Earning a household income of between RM5,000 and RM6,000 per month, Fong could only afford to pay around RM600 monthly for her two cards, while her husband could pay between RM300 and RM800 monthly depending on his income for that month.

Intan Jacquelina (not her real name), 34, is a single mother who got saddled with around RM10,000 of credit card debt from spending close to RM8,000 when she moved to a rented 1,000-square feet condominium unit in Kinrara, Petaling Jaya from Johor.

“You have to pay the deposit, plus all the furniture inside ... I used credit card because I didn’t have cash. I never managed to reduce it,” Intan told The Malaysian Insider.

The civil service executive confessed that she could only pay the monthly minimum of RM500 with her take-home pay of RM5,500 monthly, despite knowing that it will only pay her seven per cent interest while the principal sum stays unaffected.

Khalil explained that using credit cards to pay the downpayment on a house or car is a misuse of the credit card, which amounts to 13 per cent of the agency’s cases.

Easy credit

Meanwhile, Zakariah blamed the ease of lending money for the huge number of indebted Malaysians, contributed by high liquidity in the banking sector.

“If they don’t give out loans, they will not make any revenue. Their performance, their key performance index (KPI) are based on their revenue,” he said.

Just two Fridays ago, five people were charged in a Session Court with cheating Agro Bank of RM275,000 by fraudulently applying for personal loans, demonstrating such ease.

Bank Negara Malaysia (BNM) has tried to curb rising credit card debt by raising the minimum income requirement for credit card eligibility from RM18,000 to RM24,000 per annum.

The central bank has also capped the maximum credit limit to double the monthly income of the cardholder per issuer for those earning less than RM36,000 per annum.

However, RAM Holdings chief economist Dr Yeah Kim Leng noted that it was becoming easier to ask for loans as more people are turning to non-bank financial institutions (NBFIs) such as building societies and co-operatives.

“These measures do not govern NBFIs. NBFIs are not supervised by the central bank,” he said, referring to the tight regulations that conventional banks have to follow.

Despite accounting for only 12 per cent of total household credit, NBFIs and development financial institutions (DFIs) account for 57 per cent of personal financing credit.

This has caused an increase in the percentage of personal financing over household debt from 16 per cent in 2011 to 17 per cent last year.

Credit bubble

Several analysts said Malaysia risked being mired in a credit bubble which is looming in Asia’s emerging economies, which also include Singapore, Thailand, China, and Taiwan.

If the bubble bursts, Zakariah warned of havoc when households default on their debts, causing a mini version of the 2008 subprime crisis in the United States which forced foreclosures and the collapse of several financial institutions.

Yeah also anticipated that there would be a “mild shock” to the banking system, with a rise of about two to three per cent in non-performing loans.

Low-income groups who cannot keep up with the urban high standard of living form the bulk of the increase in lending, thus carries the biggest risk if the credit bubble bursts.

According to BNM, most of borrowers from NBFIs earn less than RM3,000 monthly, with 80 per cent of personal loans granted to civil servants.

Zakariah, however, denied that a credit bubble is imminent in the near future, and explained that BNM has been preparing for the scenario since two years back.

“The Financial Services Act (FSA) is likely to come into force this year,” said Yeah, referring to regulations which will rein in the NBFIs.

BNM governor Tan Sri Dr Zeti Akhtar Aziz said last month that the central bank was supervising the country’s household debt, and lending measures have been tightened after the household debt-to-GDP ratio hit 80.5 per cent last year.

Zeti gave an assurance that non-performing loans in the household sector remained at only 1.5 per cent, and repayments stayed strong.
sos

do you think we will ever see MRT/LRT in other

Weldon29 — Mon, 01 Apr 2013 23:19:30 +0800

do you think it will ever happen in your lifetime?

Israel begins pumping natural gas

Weldon29 — Mon, 01 Apr 2013 15:26:32 +0800

[YOUTUBE]xtk7X64c0jE[/YOUTUBE]
Hidup Israel!

can anyone explain this gif?

Weldon29 — Sun, 31 Mar 2013 23:27:47 +0800

do you think malaysians/singaporeans are really

Weldon29 — Sun, 31 Mar 2013 19:09:49 +0800

when you watch those shows that introduce foods and cultures of other countries, and when they show Malaysia, the guy that is guiding the presenter will always say that Malaysians/Singaporeans are crazy about food and are passionate about them. But do you really think this is true? I mean I'm sure that we care about our food, but from what I see, we aren't more passionate about food than any other cultures or countries.

By what age should you own at least one property

Weldon29 — Sat, 30 Mar 2013 23:46:07 +0800

My parents didn't have any property until they were in their 50s(bought few years ago) so /k, by what age should a man have at least one property, and if he doesn't have one by that age, what does it mean?

How long is your commute to work?

Weldon29 — Sat, 30 Mar 2013 18:35:53 +0800

Usually how long does it take for you to reach your workplace, and how long does it take for you to reach home from work. And are you satisfied with your commute time? What kind of transport do you use?

why youtube vids can load fast but others cannot?

Weldon29 — Sat, 30 Mar 2013 14:47:27 +0800

so I just changed from streamyx 1mbps to 4 mbps and I'm able to load HD vids on youtube almost instantly, but why is it that for other video streaming sites besides youtube, the streaming speed seems alot slower.

Does it have to do with youtube having servers here?

how many % of /ktards here with "female" tag

Weldon29 — Fri, 29 Mar 2013 21:30:05 +0800

I think some aren't actually girls.

pilaks leaving sabah liao

Weldon29 — Fri, 29 Mar 2013 17:37:18 +0800

Over 4,000 Filipinos quit Sabah since Sulu crackdown, says Manila
KUALA LUMPUR, March 29 ― A total of 4,771 Filipinos have fled Sabah since the Malaysian authorities began ferreting out Sulu militants and their sympathisers early this month, the Philippine disaster risk council said today.

The Philippine National Disaster Risk Reduction and Management Council (NDRRMC) was quoted by Philippine news portal InterAksyon today as saying that 944 families have left Sabah for the Basulta (Basilan, Sulu and Tawi-Tawi) region in southern Philippines as of yesterday, comprising 2,861 adults and 1,860 children.

“The number of Filipinos fleeing Sabah is expected to continue increasing as the crisis remains unresolved and amid a crackdown by Malaysian authorities on both undocumented aliens and those suspected of supporting the sultanate,” InterAksyon reported today.

Philippine media have reported allegations of human rights abuses against Filipinos in Sabah, including claims of extrajudicial killings by Malaysian security forces as they continue to hunt down the remnants of Sulu “crown prince” Agbimuddin Kiram’s armed followers.

But no evidence of the violations has been produced and Putrajaya has called the claims a “fabrication”.

InterAksyon reported today that 10.39 million pesos (RM787,205) worth of food and non-food items have been provided to the Filipino evacuees, as well as an allocation of 13.403 million pesos for other humanitarian operations.

The Philippine Department of Social Welfare and Development also reportedly plans to set up a 24/7 one-stop processing centre in Tawi-Tawi to provide the Filipino evacuees with psychosocial intervention, legal documents, skills training and livelihood assistance.

The Philippine senate has demanded its government hold Malaysia accountable for possible human rights violations against the 800,000-strong Filipino migrant community in Sabah, at the hands of local authorities searching for a ragtag band of Sulu militants claiming ownership of the north Borneo state.

Philippine Defence Secretary Voltaire Gazmin said last Tuesday that the crackdown against Sulu militants who invaded Sabah last month has turned into a protracted, low-intensity conflict akin to hunting for fish in water.

Gazmin was reported by Manila Standard Today as saying that 12 battalions of soldiers and policemen, or more than 7,000 men, were searching for Agbimuddin, who is a brother of self-proclaimed Sulu “sultan” Jamalul Kiram III.

Malaysian authorities believe that Agbimuddin has fled Sabah, but their Philippine counterparts have said that he has yet to be found in the republic.

Agbimuddin led a group of 235 armed militants to Lahad Datu, Sabah, on February 9 to stake the sultanate’s claim over the north Borneo state.

As of last Friday, the incursion has resulted in the deaths of 63 Sulu militants, according to figures from Malaysian security forces, as well as 10 Malaysians, including eight policemen and two soldiers.

Malaysia launched “Ops Daulat” on March 5 to flush out the armed southern Filipinos after weeks of negotiation failed to result in a peaceful resolution.

Manila has said it will not abandon the sultanate’s claim over Sabah, even as Malaysian authorities insist the claim is no longer valid due to the inclusion of the state in the 1963 Malaysia agreement.
http://www.themalaysianinsider.com/malaysi...wn-says-manila/

If you are a richfag

Weldon29 — Thu, 28 Mar 2013 15:15:28 +0800

I'll send to international school

lurkers come in

Weldon29 — Wed, 27 Mar 2013 15:02:54 +0800

show yourselves

sandakan fags come in plz

Weldon29 — Wed, 27 Mar 2013 13:37:59 +0800

are there any dentist here that does dental braces?

so I just got job offer...

Weldon29 — Wed, 27 Mar 2013 11:33:51 +0800

So I just got a job offer. 1k only, but only need work sunday-friday, 2-3 hours per day, 2 year contract. if take this means i stay with parents, no need pay rent, maybe I give 100 for bills, don't need spend on food if I don't want to, live in semi-d house, 10 minutes commute time to work. job won't have any pressure. Don't need to spend money on laptop and phone, since I already have a great desktop

I also going to SG interview next month, salary about 1.5k.1.7k, have to rent room, use MRT/Bus to go to work, and pay for own food. 2 year contract, work hour is 40++hours per week, sunday and saturday need work 10 hours a day.

I'm also preparing for diploma, so I probably won't have much time in SG.

which option better /k?

Manila tells Filipinos to drop Malaysia

Weldon29 — Tue, 26 Mar 2013 20:01:39 +0800

KUALA LUMPUR, March 26 – Manila has given directives to all its agencies and Filipinos to call Sabah as a state that is not a part of Malaysian territory in a move that will spark concerns here of a possible push to revive the country’s claim over the eastern Malaysian state.

According to InterAksyon, a subsidiary of Philippines TV5, officials from the country’s Department of Foreign Affairs (DFA) had brought this matter up today, citing Memorandum Circular No. 162 issued by Malacanang Palace back in 2008.

The news report, citing lawyer Roy Ecraela of the DFA Office of the Undersecretary of Special and Ocean Concerns, added that the document directed government agencies to refer to Sabah as just Sabah and not Sabah, Malaysia.

“Kota Kinabalu, Sabah, na lang. Tanggalin na ‘yung Malaysia (Let’s just call it Kota Kinabalu, Sabah. Leave out the Malaysia),” Ecraela was quoted as saying.

Ecraela was reported to have issued the statement today after several agencies met with the National Disaster Risk Reduction and Management Council (NDRRMC) on Monday to discuss humanitarian aid to Filipinos displaced by the conflict in Sabah.

“During the meeting, a representative of the Department of Social Welfare and Development (DSWD) referred to those displaced as the people who left ‘Sabah, Malaysia.’

“This prompted an official from the Philippine Coast Guard to ask if government policy has already changed regarding Sabah, which the Philippines still has a claim on,” the report said further.

Ecraela further pointed out that the country’s Supreme Court ruled in July 16, 2011 that the Philippines could still pursue its claim to Sabah.

InterAksyon further reported that in the same meeting, Philippines agencies tasked to handle the refugee issue had agreed to call those coming back from Sabah as “displaced persons” and not evacuees or returnees.

On March 19, it was reported that Manila had engaged a team of lawyers to study the country’s claim on Sabah amid clashes between Filipino gunmen and Malaysian security forces there.

The Philippine Star reported a senior member of the Philippine government as saying that the country had not given up its claim on the territory that has been part of Malaysia for decades.

“Are they kidding when they say we have given up our claim? We’re paying so much for the lawyers to study the claim,” Cabinet Secretary Jose Rene Almendras was quoted as saying.

But, he said, that any action by the country will be carried out according to international laws, and not through force, appearing to echo President Benigno Aquino III’s views.

The daily also reported Aquino as saying that his administration was drawing up a roadmap to end the dispute over Sabah peacefully.

Debates about the Philippine government and the Sultanate of Sulu’s claim on Sabah had resurfaced following an incursion into Sabah’s east coast by a group of over 200 armed followers of the self-styled Sultan of Sulu Jamalul Kiram III over a month ago.

The Sultanate of Sulu has laid claim to Sabah, saying it had merely leased North Borneo in 1878 to the British North Borneo Company for an annual payment of 5,000 Malayan dollars then, which was increased to 5,300 Malayan dollars in 1903.

Sabah, however, joined Malaya, Sarawak and Singapore to form Malaysia in 1963, after which Malaysia continued paying an annual stipend of RM5,300 to the Sulu sultanate on the basis of the sultanate ceding the Borneo state.

Prime Minister Datuk Seri Najib Razak had previously highlighted the Cobbold Commission’s 1962 referendum in Sabah and Sarawak, where about two-thirds of the people voted to be part of Malaysia.

Early this month, Malaysia’s Bar Council said the Sulu sultanate no longer holds any legal claim over Sabah, pointing out that the ICJ had recognised Malaysia’s rights and sovereignty over Sabah and the islands surrounding it during a territorial dispute in 2002.

The ICJ recognised Malaysia’s claim in its decision on the dispute between Malaysia and Indonesia over the islands of Ligitan and Sipadan, off the coast of Sabah, in December 2002. The Philippines had at the time applied to intervene in the case, but its application was rejected.

Both Malaysia and the Philippines are members of ASEAN, and the former was instrumental in brokering a peace deal in the southern Philippines.

sos

should we go to the international court?

which town will be the next city in Malaysia?

Weldon29 — Tue, 26 Mar 2013 18:31:19 +0800

which town, and when do you think they will be granted city status.

Anyone think Taiping or Seremban got a chance?

what's the minimum amount of things that a place

Weldon29 — Tue, 26 Mar 2013 17:53:21 +0800

for you to consider moving there?

hospitals? universities? airports? strip clubs? malls? churches? MRTs?

Live in big city(KL, PJ, SJ, Georgetown) or live

Weldon29 — Tue, 26 Mar 2013 15:17:30 +0800

for the same salary, would you rather live and work in a city or in a small town?

South Korea trying to beat China

Weldon29 — Tue, 26 Mar 2013 07:32:45 +0800

http://www.koreabang.com/2013/stories/mang...ubway-seat.html

Hong Kongers don't like Pinos!

Weldon29 — Mon, 25 Mar 2013 19:21:08 +0800

[YOUTUBE]wTz3w3Istb0[/YOUTUBE]