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  • A must-visit this Merdeka – MR D.I.Y.’s first Merdeka Bazaar

    A must-visit this Merdeka – MR D.I.Y.’s first Merdeka Bazaar

    KUALA LUMPUR, 23 August 2024 — Merdeka celebrations are just a few days away, and Malaysians have something exciting to look forward to, thanks to homegrown Malaysian retailer MR D.I.Y. Group [M] Berhad [MR D.I.Y.].

    MR D.I.Y is inviting Malaysians to its first-ever Merdeka bazaar – ‘Besama Satu Bazaar’ – at the PIAZZA, Pavilion Bukit Jalil from 30 August to 1 September 2024. to celebrate the country’s 67th Merdeka Day.

    The Bazaar includes more than 100 booths, featuring some of Malaysia’s most popular food and product stalls, as well as booths featuring MR D.I.Y’s own range of products from its stable of brands –  MR D.I.Y., MR. TOY, EMTOP, and MR. DOLLAR.  There will be nasi lemak, laksa, burgers, noodles, snacks, desserts, and refreshing drinks, as well as handmade accessories, stationery, cosmetics, and crafts.

    The three-day event will also feature fun and thrilling games, creative workshops, the works of local arts and artists, as well as cultural and contemporary performances, with the highlight being having celebrities Alif Satar & The Locos, Jaclyn Victor, and Priscilla Abby perform the patriotic anthem ‘Bersama Satu Suara’ live for the first time.  This will take place on 31 August 2024 from 8:30 pm onwards.

    Commenting on the initiative, MR D.I.Y. Group’s Head of Marketing Alex Goh said, “This is MR D.I.Y’s first-ever Merdeka bazaar, and we’re thrilled to invite everyone to join us. This three-day event is all about celebrating our pride, unity, and joy as Malaysians. By bringing together Malaysian businesses, entrepreneurs, cultural and contemporary performers, as well as artists, we are celebrating the depth and breadth of Malaysia’s diversity and rich cultural heritage.  We are a proudly homegrown Malaysian brand and one of the country’s largest retailers; this is one way we can celebrate being true Malaysians.”

    “The bazaar will be a place where Malaysians from all walks of life can come together to eat, shop, play games, and enjoy Malaysian entertainment while supporting local businesses, entrepreneurs, and talents. We look forward to celebrating this event with our customers, and I invite all Malaysians to join us in this memorable and historic celebration that unites us as one nation,” said Alex.

    To celebrate the occasion, MR D.I.Y is giving away complimentary tote bags to the first 1,000 visitors daily when they complete the Bazaar passport challenge, an engaging and innovative initiative to help visitors enjoy everything the bazaar has to offer. Additionally, visitors stand a chance to win lucky draw prizes worth up to RM12,000.

    To find out more about MR D.I.Y’s ‘Besama Satu Bazaar’ happening from 30 August to 1 September, 2024, visit https://www.mrdiy.com/promotion/mrdiy-bersama-satu-bazaar-2024.

    To know more about MR D.I,Y, visit mrdiy.com, mrdiy.com.my, and follow the brand on Facebook, Instagram, and TikTok.

                       Visit more than 100 booths showcasing Malaysia’s favourite food and products at the ‘Bersama Satu Bazaar’

                         Catch Alif Satar and The Locos, Jaclyn Victor, and Priscilla Abby on 31 August 2024, 8:30pm-9:30pm at MR D.I.Y.’s ‘Bersama Satu Bazaar’

    About MR D.I.Y. Group (M) Berhad

    MR D.I.Y. Group (M) Berhad is a home-grown enterprise with more than 1,300 stores nationwide across three brands (MR. D.I.Y., MR. DOLLAR & MR. TOY) and in Brunei.  The retailer is also a master franchisee of the EMTOP brand in Malaysia. It has been dedicated to making a positive difference in the lives of its valued customers by offering convenience at all of its stores nationwide and online at mrdiy.com.my.

    All MR D.I.Y. stores are managed directly, and the company often works in collaboration with other mass merchandise retailers or owners of malls or shopfront properties. MR D.I.Y. stores offer a wide selection of — approximately 17,000 SKUs — across 5 major categories, namely hardware; household and furnishing; electrical; stationery and sports equipment products; and others (comprising amongst others toys, car accessories, jewellery, cosmetics, food and beverage items, and health and personal care).

    The company strives to always put customers first by operating an innovative business that is flexible when it comes to providing a wide variety of products, good quality, and value-for-money, holding true to its company motto: “ALWAYS LOW PRICES”.

     

  • Smart Tax Planning for Financial Success

    Smart Tax Planning for Financial Success

    By Annie Wong

     

    Starting 2 January 2022, even zero-income full-time students in Malaysia are required to file their tax returns with the Inland Revenue Board of Malaysia (IRBM). The question arises: How many of us are still unaware of these changes?

     

    In the ever-evolving economic landscape, staying informed about recent changes that impact our financial lives is crucial. Within this dynamic field of taxation, subject to constant change, it is essential to equip ourselves with effective tax planning strategies.

     

    Despite being Malaysian citizens, not everyone is aware of their tax obligations. For instance, according to Act 8331, Finance Act 2021, a new section 66A (1)(c) mandates that any citizen aged eighteen and above must have a Tax Identification Number (TIN).

     

    As of 1 January 2022, even if Malaysians are 18 years old with no income, they are required to report ‘0’ in their BE form. While 7.8 million TINs were automatically generated for eligible citizens, many still believe that being a full-time student with no income exempts them from filing tax returns.

     

    During the Tax Forum 2023, Abang Ehsan Abang Abu Bakar from the Tax Compliance Department of LHDN suggested that eligible citizens, especially new taxpayers, should complete their tax return filing before 31 May 2024. The IRBM has introduced a Special Voluntary Disclosure Programme 2.0 from 6 June 2023 to 3 May 2024, allowing new taxpayers to file tax returns for YA 2022 and earlier without penalties.

     

    Consider a working adult earning less than RM30,000. Should they fill out a tax filing? Yes, they should. While it wasn’t necessary previously due to their chargeable income being non-taxable, the amendment, effective 1 January 2022 mandates all citizens aged 18 and older to report and submit their tax filings.

     

    Why does a full-time student with no income need to report now? IRBM cannot distinguish between zero earnings and substantial income unless it is reported. According to an EY report in November 20222, Malaysia’s shadow economy accounted for 18% of GDP in 2019, approximately RM250 billion. The shadow economy comprises underreported business income, non-registered businesses and illicit activities. Deputy Finance Minister Ahmad Maslan mentioned in an interview on 17 October 2023, that TIN and e-invoicing are expected to shrink Malaysia’s shadow economy. Now we understand; it is part of the government’s strategy to tackle the shadow economy!

     

    Strategic Tax-Saving Tips

    To legally save on taxes, engaging in proper tax planning at the beginning of the year is essential. One key strategy involves maximising deductions through available tax relief, charitable contributions and tax-exempt investments. Here are some tips categorised into four groups:

     

    General Tax Relief: According to the Budget 2024 proposal, several beneficial tax reliefs have been added. For instance, expenses incurred for dental and medical check-ups for yourself, your spouse, parents and children are claimable up to RM1,000. Participating in up-skilling courses and retaining the receipt from the organiser can result in a claim of up to RM2,500. Contributions to the Private Retirement Scheme (PRS) offer tax relief up to RM3,000 until YA 2025.

     

    Additionally, optimising the use of tax-advantaged accounts, such as the Employees Provident Fund (EPF), is crucial. The voluntary contribution initiative of EPF, i-Saraan3, allows self-employed members and gig economy employees to contribute up to RM100,000 per annum, with a special incentive of 15% for the total contribution, up to a maximum of RM500 for the current year. Combining approved scheme contribution relief and voluntary contribution/life insurance relief can result in a maximum tax relief of RM7,000.

     

    Employee Perquisites: Employees working for a business entity can negotiate a better remuneration package with allowances, benefits-in-kind and perquisites. For example, Joshua, a general manager with over 15 years of experience in a pharmaceutical company, proposed to his boss a daily meal allowance and a travel allowance of RM6,000 per annum, respectively. All these allowances are tax-exempted perquisites, and Joshua doesn’t need to pay a single cent in tax for these benefits. Additionally, Joshua requested a company car.

     

    Let’s assume the company provides him with a car valued at RM180,0004; his additional taxable income is only RM8,800. After deducting all personal tax reliefs, if Joshua’s tax bracket is 25%, he only needs to pay RM2,200 (RM 8,800 x 25%) per year to enjoy a luxury car with a driver every day. A long-service award is given by the company, and the first RM2,000 is tax-exempted as well. So, if you are a long-service employee, why not consider requesting a substantial award from the company?

     

    Benefits for Married Employees: Employees who are married with children can explore opportunities for additional benefits. Children’s allowance perquisites were raised from RM2,400 to RM3,000 during the Budget 2024 proposal. Parents with children under 6 years old can claim up to RM3,000 per household by sending them to a JKM-registered kindergarten. Saving RM8,000 into Skim Simpanan Pendidikan Nasional (SSPN) is eligible for each parent until YA 2024.

     

    Business Owners (LLP or Sdn Bhd): Business owners, particularly those in the Small and Medium Enterprise category, can strategically repackage remuneration to maximise tax savings. Declaring dividends instead of drawing a high salary package or director fees can be a tax-efficient move, especially to keep the total annual chargeable income below RM 100,000 and benefit from lower tax brackets ranging from 15% to 24%.

     

    These are some practical tips for optimising individual tax returns in 2024. Additionally, starting on 1 August 2024, the government will implement e-invoicing for companies with revenue exceeding RM100 million. This change is set to be a game-changer in the tax landscape. Moreover, it will become mandatory for all taxpayers, including SMEs, from 1 July 2025.

     

    To learn more strategies for optimising tax returns, minimising liabilities and strategically timing financial transactions, proper tax planning is required. By understanding the taxation framework, one can take control of their financial destiny by making informed choices that align with their long-term goals. May this year be a great and prosperous one for most of us!

     

    About the Writer

     

    Annie Wong is a dedicated and accomplished trainer with over a decade of experience in training and SME business consulting. She holds a Bachelor of Science degree from Campbell University, graduating with Summa cum laude honours. Presently, Annie is globally recognised as a Certified Financial Planner (CFP CERT TM Professional) and a Certified Professional Trainer (CPT, IPMA, UK). She is licenced as a CMSRL Financial Planner by the Securities Commission Malaysia, and her expertise has positively impacted numerous individuals and businesses.

     

    Sources

    (1) Act 833, Financial Act 2021.

    (2) Shadow Economy: www.freemalaysiatoday.com/category/highlight/2023/10/17/governments-grand-plan-to-tackle-shadow-economyClick here to enter text.

    (3) i-saraan: www.kwsp.gov.my/en/member/contribution/i-saraan

    (4) Benefits-in-kind: http://lampiran1.hasil.gov.my/pdf/pdfam/PR_11_2019.pdf

  • Valuation Creation in ESG Investing

    Valuation Creation in ESG Investing

    ESG investing involves integrating environmental, social and governance factors into investment decisions, with the possibility of aligning financial returns with sustainability considerations.  These factors may cover a broad range of issues as well, and some may even overlap with one another.  As most businesses are intertwined with ESG concerns in one way or another, it is opportune to explore how ESG investing creates value and impacts value creation.

     

    Let us take a closer look at some of the factors and its impacts:

     

    Risk Management

    ESG factors may help identify and mitigate risks that conventional financial analysis may overlook.  Factors such as climate change, labour practices, corporate ethics, and more, may have implications in the long run, and adds a different dimension to traditional analysis.  As an example, companies with strong environmental practices may be less likely to face environmental disasters, while those with robust governance structures may be less prone to mismanagement.

     

    Enhanced Performance

    ESG initiatives may lead to increased operational efficiencies.  For example, switching to energy-efficient technologies or even turning off electricity when not in use, can reduce cost.  Efficient resource management such as reduction in printing can lead to savings and improved productivity.  In addition, companies which place an emphasis on ESG considerations can harness market opportunities such as the growing demand for renewable energy, sustainable products and ethical business practices.

     

    Reputation

    Companies with strong ESG profiles may be perceived as being more responsible, and this facilitates in enhancing their reputation among clients, peers and other stakeholders.  Ethical and sustainable practices can also nurture greater customer loyalty, as consumers may prefer to engage with companies that align with their values.

     

    Capital Attraction

    With ESG investing gaining traction, companies with a stable ESG presence may attract more interest from investors seeking to align their portfolios with responsible investment practices.  This may lead to higher visibility and an increase in capital inflows.  Furthermore, it may be less challenging for companies to command a premium, as they are recognised for their potential for long-term value creation.

     

    Innovation

    As companies strive to incorporate ESG factors in their businesses and operations, they might be driven to innovate as well, given that they might need to develop new processes, products and services to address ESG challenges.  This may result in new and alternative revenue streams.  At the same time, sound ESG practices can differentiate a company from its competitors and thus, positioning itself to stand out as being more attractive and credible to clients, investors, suppliers, industry peers, etc.

     

    Compliance

    Companies that prioritise ESG factors might be better prepared and positioned to comply with regulations.  This will likely reduce the risk of legal issues and its associated costs.  In addition, consistent adherence to high standards of governance may lead to avoidance of fines, penalties and lawsuits, which can negatively impact their financial performance.

     

    Stakeholder Engagement

    Having robust ESG practices in place often allows for stronger relationships with key stakeholders, such as clients, industry players, regulators etc.  This can lead to improved cooperation, trust, visibility and support.  Frequent stakeholder engagement and consideration of their perspectives can lead to more optimal decision-making and more sustainable business practices.

     

    Positive Impact

    As companies delve into ESG investing, they are indirectly supporting companies that contribute positively to society, environment, sustainable development practices and those which address global challenges.  By extension, in promoting sustainable and ethical business practices, ESG investing can contribute to the stability and resilience of the wider economic system.

     

    Challenges and Emphasis

    Despite the numerous advantages of ESG investing, it does not come without challenges that need to be addressed.  One of the primary challenges in ESG investing is the lack of a standardised metrics and framework.  A lack of uniform standards makes it challenging to compare ESG performances across companies.

     

    Another challenge comes in the form of obtaining reliable and comprehensive ESG data for informed decision-making, as it often relies on self-reported information from companies which would have likely generated its own data.  Investors also need to balance financial returns with ESG goals.  This is because some are of the opinion that ESG investing is concerned with social outcomes only, which could be disconnected from financial returns and as such, are willing to sacrifice profit to achieve the intended social outcomes.  In addition, navigating the evolving regulatory ESG landscape is complex and daunting.

     

    The increasing emphasis placed on ESG investing reflects a growing importance that financial success and societal impact are connected.  It may or may not be a moral obligation yet, but the commitment towards sustainability and governance – no matter how small – can and will pave the way for resilient businesses to thrive.  By incorporating ESG factors into asset allocation and risk decisions, it is hoped that companies can enhance their competitive edge, achieve long-term financial returns and contribute to a more sustainable world.  Success is not defined merely by financial metrics alone, but by the positive impact that is created.  It is never too late to embark on the journey towards a sustainable future; this ought to be a purposeful one, as ESG investing is set to play a pivotal role in shaping the things to come. – (TSI)

     

    About the Writer

     

    Ng Phaik May is currently a Senior Relationship Manager at Opus Asset Management Sdn Bhd. She serves as a primary point of contact for clients, ensuring their needs and objectives are effectively met through a client-focused approach and tailored investment solutions.

     

    The Company is a fund management company specialising on fixed income investments for more than 19 years, with its vision to help people in achieving their financial goals and life aspirations. The Company offers an online platform that ensures a smooth investing experience for investors interested in fixed income unit trust funds.

  • Evaluating Corporate Insurance in Today’s Market

    Evaluating Corporate Insurance in Today’s Market

    By CH Goh

    Every business, irrespective of size, must safeguard itself against potential risks to ensure long-term viability.

    Amidst the rapid changes in the business landscape, entrepreneurs and business owners grapple with a multitude of challenges and uncertainties. In this dynamic environment, corporate insurance emerges as a crucial tool for mitigating risks and safeguarding businesses.

    Corporate insurance has become indispensable for ensuring the safety and continuity of businesses amidst the ever-changing landscape. It serves as a critical shield against uncertainties and unforeseen events that could jeopardise a business’s survival and competitiveness. With the risks inherent in daily operations, mitigating these uncertainties becomes paramount for sustained growth and success.

    The escalating demand for corporate insurance reflects the escalating risks and uncertainties pervasive in today’s business environment. By implementing tailored policies, businesses can effectively mitigate financial losses stemming from unexpected occurrences. Often referred to as commercial insurance, corporate insurance offers vital financial protection against potential catastrophes, thereby fortifying businesses against substantial losses.

    Importance of Regular Assessment

    Every business, irrespective of size, must safeguard itself against potential risks to ensure long-term viability. Merely purchasing insurance coverage may not suffice; instead, consistent and comprehensive evaluation of insurance policies is increasingly vital for the business’s welfare. Furthermore, this helps the business adjust to changes in the business environment.

    Regular assessment of insurance coverage is essential for effective risk mitigation and ensuring the long-term resilience of businesses. In a rapidly changing business environment filled with uncertainties and risks, it is crucial for companies to remain vigilant and adaptable in order to safeguard their interests and ensure their long-term viability.

    The changing nature of the business environment necessitates the continuous evaluation and adjustment of insurance strategies. Factors such as regulatory changes, technological advancements and emerging risks constantly reshape the risk landscape, making it imperative for businesses to regularly reassess their insurance coverage.

    By conducting thorough assessments, businesses can identify potential gaps in coverage, anticipate evolving risks and align their insurance strategies with their overarching business objectives and industry trends.

    One of the key reasons for ongoing assessment is the rapidly changing business landscape. Regulatory updates, technological innovations and shifts in consumer preferences can significantly impact the risks faced by businesses.

    For example, the increasing reliance on digital technologies has led to new risks such as cyber threats and data breaches, which can have severe financial and reputational consequences. By regularly evaluating their insurance coverage, businesses can ensure that they are adequately protected against these emerging threats and adapt their strategies accordingly.

    Moreover, ongoing assessment enables businesses to stay ahead of evolving risks. As industries evolve and new challenges emerge, businesses must be proactive in identifying and mitigating potential risks.

    For instance, climate change-related events, such as extreme weather events and natural disasters, are becoming more frequent and severe, posing a growing threat to businesses across various sectors. By regularly reassessing their insurance coverage, businesses can identify emerging risks associated with climate change and take proactive measures to mitigate their impact.

    In addition to addressing evolving risks, regular assessment also helps businesses navigate compliance requirements effectively. Regulatory frameworks are constantly evolving, with new laws and regulations being introduced to address emerging risks and protect consumer interests.

    Failure to comply with these regulations can result in significant penalties and legal liabilities, potentially jeopardising the financial stability and reputation of businesses. By regularly evaluating their insurance coverage in light of evolving regulatory standards, businesses can ensure compliance and mitigate the risk of costly penalties.

    Regular assessment of insurance coverage is paramount in today’s rapidly changing business environment. By staying vigilant, proactive, and adaptable, businesses can effectively mitigate risks, protect their interests, and ensure their long-term success and sustainability in an increasingly uncertain world.

    Aligning Coverage with Business Objectives

    As businesses navigate the dynamic market landscape, it is crucial to ensure that their insurance coverage aligns with their overarching strategic goals and priorities. This alignment is essential for maximising the value and effectiveness of insurance policies.

    By carefully evaluating how insurance coverage supports the achievement of key business objectives, such as revenue growth, operational efficiency or risk mitigation, companies can make informed decisions about their insurance portfolio.

    This process may involve reassessing coverage limits, adjusting deductibles or exploring alternative insurance products that better address emerging risks and complement the organisation’s long-term vision. Maintaining this strategic alignment allows businesses to leverage their insurance strategies as a strategic tool for enhancing resilience, driving innovation and securing a competitive edge in the marketplace.

    Staying Ahead of the Curve with Comprehensive Corporate Insurance

    As the business world continues to transform at a breakneck pace, the importance of maintaining a robust and adaptable corporate insurance strategy cannot be overstated. By regularly evaluating their coverage and aligning it with their strategic priorities, companies can position themselves to weather the storms of an unpredictable future. Through proactive risk assessment, targeted policy selection and diligent monitoring, organisations can fortify their operations, safeguard their assets and enhance their long-term resilience. In an era marked by escalating uncertainties, comprehensive corporate insurance serves as a vital safeguard, empowering businesses to navigate the evolving landscape with confidence and agility.

     

    Before settling on a specific insurance coverage, it is crucial for businesses to conduct a thorough risk assessment, as the need for comprehensive risk management has never been more critical.

    Effective insurance planning is a cornerstone of this risk management strategy, allowing organisations to protect their assets, operations and financial stability in the face of unforeseen challenges. Here are some key factors for businesses to consider when buying corporate insurance coverage:

    Identify Potential Risks

    • Thoroughly examine your operations, assets, and industry to determine the specific risks you may face, such as natural disasters, cyberattacks, liability claims, equipment breakdowns, etc.
    • Assess the likelihood and potential impact of each risk to prioritize your coverage needs.

    Evaluate Coverage Options

    • Research the various types of corporate insurance policies available, such as general liability, property, workers’ compensation, directors and officers (D&O), cyber, and business interruption.
    • Understand the coverage, exclusions and limits provided by each policy type.

    Determine Appropriate Coverage Limits

    • Evaluate the full replacement value of your assets, potential liability costs, and anticipated business interruption expenses.
    • Set coverage limits high enough to fully protect your operations in a worst-case scenario.

    Consider Specialised Policies

    • Evaluate the need for specialised insurance like cyber liability, professional indemnity or supply chain disruption coverage.
    • These can provide critical protection beyond a standard commercial policy.

    Review Policy Terms and Exclusions

    • Carefully read and understand the fine print of any insurance policy, including coverage limitations, exclusions, and any conditions or requirements.
    • Ensure the policy aligns with your specific business needs and risk profile.

    Consider the Insurance Provider

    • Research the financial stability, reputation and claims-handling track record of potential insurance providers.
    • Choose a reputable and reliable insurer to ensure prompt and fair settlement of claims.

    Review and Update Regularly

    • Reevaluate your insurance needs annually as your business evolves.
    • Make adjustments to coverage as new risks emerge or your operations change.

    Carefully evaluating these factors can help businesses select the right corporate insurance coverage to protect their assets, operations, and financial stability.

     

    Key Types of Corporate Insurance

    Businesses face a wide array of risks, from natural disasters and cyberattacks to liability issues and operational disruptions. To protect against these diverse threats, companies can consider the following key types of corporate insurance coverage:

    Property Insurance: Covers physical assets like buildings, equipment and inventory against damages from perils like fires, storms and theft.

    Liability Insurance: Protects the organisation from third-party claims of bodily injury, property damage or negligence. This includes general liability, product liability and professional liability.

    Business Interruption Insurance: Provides financial compensation for lost income and increased expenses if operations are disrupted by a covered event like a natural disaster or equipment breakdown.

    Cyber Liability Insurance: Covers the costs associated with data breaches, ransomware attacks and other cyber incidents, including legal fees, regulatory fines and customer notification.

    Directors and Officers (D&O) Insurance: Protects executives and board members from personal liability related to their management decisions and actions on behalf of the company.

    Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees who are injured or become ill on the job.

    By implementing a comprehensive corporate insurance portfolio tailored to their unique risk profile, businesses can safeguard their operations, finances and reputation in the face of an unpredictable business landscape.

  • Understanding Your Relationship with Money for Better Financial Health

    Understanding Your Relationship with Money for Better Financial Health

    By Kevin Neoh

    Have you ever wondered if money were a person? What kind of relationship would you have with this ‘person’? Will this be a person who gives you a lot of stress each time you think about them or one with whom you enjoy having a quality and mutually beneficial relationship?

    Why Your Relationship with Money Matters

    Like many other things, such as our car, house or devices, money is also a tool that we use to help us accomplish specific goals or meet various needs. Other than being a tool we use to buy things, it is also a reflection of your values, beliefs and emotions. How you think and feel about money can affect your financial health, your happiness, and your wellbeing. That is why it is important to have a good relationship with money, one that is based on awareness, understanding and empowerment.

    How Your Beliefs Shape Your Behaviour

    “We begin learning about money indirectly from a young age, observing how adults handle or act around money, starting as young as three years old.”

    Our relationship with money is influenced by our beliefs, which are formed through our past experiences, culture, family and personality. We begin learning about money indirectly from a young age, observing how adults handle or act around money, starting as young as three years old.

    Our beliefs can be supportive or non-supportive, conscious or unconscious, rational or irrational. The truth is that they can either help us or hinder us from achieving our goals.

    For example, if you grow up in a family where money is often a scarce resource, you might develop a focus on saving money and have difficulty spending, even though, as an adult, your situation allows you to live comfortably. Likewise, another person who had a similar childhood might grow up believing that there will always be insufficient money and one should spend while it’s there, or that because one is deprived of many things growing up, one should enjoy them whenever they can. Similar experiences may have produced an opposite belief and thus, different behaviours around money.

    This is why our beliefs about money can shape our financial health. For instance, if a person grew up constantly believing that money is bad, that it causes pain, and that it leads to arguments in the family rooted in money issues, this person may feel uneasy having money and thus will find ways to spend it without consciously wanting to. As a result, this person will hardly have savings, may have debts and may be unable to plan their future with confidence.

    As another example, a person who witnessed their loved ones lose most of their wealth due to a stock market crisis might grow up thinking that investing in the stock market is too risky, to the point that one might lose everything. Hence, this person might stay away from investing in the stock market without consciously realising why.

    It is worth noting that there are no right or wrong beliefs; they are all part of us. Our beliefs are what help keep us comfortable and safe. However, as our circumstances, economy and way of life change, certain things that used to be true or worked in the past may no longer be the same. Therefore, it is sometimes worthwhile for us to examine our beliefs and discuss them with someone who can be impartial.

    How to Examine and Change Your Beliefs

    The first step in improving our relationship with money is becoming aware of our beliefs and understanding how they influence our behaviours. This awareness can be achieved by paying attention to our thoughts, feelings and actions when dealing with money.

    You can also ask yourself questions, such as:
    • What did I learn about money from my parents, friends or society?
    • What are the benefits and drawbacks of my beliefs?
    • How do they align with my values and goals? In what ways may they limit me?

    The second step is to challenge and change your beliefs if they are limiting or harmful. This can be done by seeking evidence that contradicts your beliefs, finding alternative explanations or adopting new perspectives. Additionally, you can use affirmations, visualisation or meditation to reinforce positive beliefs.

    Relationship with Money & Financial Health

    When we have a better relationship with money, we can make more informed financial decisions, placing us in a position to thrive and flourish. This involves being able to cope with financial stress and work towards achieving our financial goals.

    As we strive to improve our financial health, it’s essential to be mindful that what society or conventional thought considers financially healthy may not be an ideal benchmark.

    Having a substantial amount of money in the bank or earning a high income does not necessarily equate to good financial health. For instance, a person with a high income, lacking an understanding of their money beliefs, and harbouring a non-supportive relationship with money may struggle to retain their income, ending up with significant debts.

    Similarly, someone with a high net worth due to reluctance to spend may miss opportunities to leverage their wealth for an ideal and fulfilling life.

    TL; DR

    If you feel that this article is not something you expected, that’s because it isn’t. In fact, the message I am trying to convey to the reader here is that instead of focusing on growing our wealth, finding the next-best-investment or buying the latest financial product, our focus should shift from a product-oriented to a human-oriented approach. We should give considerable thought to nurturing good financial health.

    Traditional financial advice or practices like budgeting, paying yourself first, investing regularly and spending within your means can help nurture our financial health. We may also benefit from seeking financial education and advice whenever needed. However, if we have not spent some time understanding the relationship we have with money and the beliefs that drive this relationship, all the hard work and efforts we put in might not matter much for our wellbeing in the long run.

    Remember, money is not an end but a means to an end. Money is a tool to serve your needs, not the other way around. Therefore, this is why it makes sense for us to begin by asking, “What kind of relationship do we have here?”

    ABOUT THE WRITER

    Kevin is the Head of Financial Planning at VKA Wealth Planners. As a Certified Financial Planner (CFP) and Certified Financial Coach (CeFC), Kevin works with clients to transform their relationship with money, empowering them to take charge of their lives and live the best life they desire. Kevin can be reached at kevinneoh@vka.com.my.

  • Steady Returns, Lasting Impact

    Steady Returns, Lasting Impact

    By Heng Jeng Chyan

    Fixed income investments, commonly referred to as bonds, provide a stable and dependable avenue for investors seeking consistent returns and portfolio diversification. While equities often take centre stage in investment discussions, fixed income assets are essential components of many purpose-driven investment strategies.

    Fixed income investments entail investors purchasing debt from governments or corporations, effectively becoming lenders to the issuer. In exchange, investors receive regular interest payments, termed as coupon payments. Conversely, sukuk adheres to Islamic principles and operates akin to bonds, disbursing periodic payments known as dividends.

    This article explores the advantages of purposeful fixed income investing and its potential to yield positive and enduring financial impacts within an individual’s investment portfolio.

    Aligning Financial Decisions with Life Goals

    “Preserving capital is the cornerstone of investing with purpose, ensuring that invested funds retain their value and provide financial security over time, regardless of investors’ varying life goals and stages.”

    Investing with purpose entails extending goals beyond mere wealth accumulation; rather, it involves aligning financial decisions with specific life goals or values.

    Above all, preserving capital is the cornerstone of investing with purpose, ensuring that invested funds retain their value and provide financial security over time, regardless of investors’ varying life goals and stages.

    For investors focusing on short-term financial goals such as purchasing a car or planning a vacation, preserving capital ensures that allocated funds remain intact and readily available, safeguarding against unforeseen expenses or emergencies during periods characterised by career-building and family-starting.

    Likewise, investors with longer investment horizons and higher risk tolerance also require capital-preservation investments. For example, those aiming to finance their children’s education, buy a house or secure retirement need capital preservation to maintain financial stability and security throughout their golden years.

    Ultimately, investors seek to ensure that their life savings aren’t depleted by market volatility or unexpected expenses. By safeguarding invested capital, individuals can create a safety net that shields against unforeseen circumstances, providing peace as they navigate their financial journey to achieve their goals and aspirations.

    Democratising Fixed Income Access Through Unit Trusts

    “Unit trust bond funds provide a convenient and accessible means to diversify portfolios with fixed income securities.”

    Typically, the public is more acquainted with stocks, fixed deposits, equity unit trust funds and real estate investments compared to fixed income options. Consequently, fixed income investments often remain overshadowed by other investment avenues.

    Traditionally, fixed income investments demand substantial minimum investment amounts, such as RM5 million for one standard lot of corporate bonds and RM10 million for one standard lot of government bonds. This restricts access primarily to institutional and ultra-high net worth investors.

    However, alternative avenues exist for individual investors to enter the fixed income market. Unit trust bond funds, for instance, provide a convenient and accessible means to diversify portfolios with fixed income securities. By pooling funds from multiple investors, unit trusts enable individuals to invest in various fixed income assets at lower minimum thresholds (as low as RM100) with greater flexibility compared to direct bond purchases.

    Furthermore, unit trust funds are overseen by professional fund managers who make investment decisions on behalf of investors, leveraging their expertise and research capabilities. These funds also implement risk management strategies, including investment guidelines, diversification requirements and ongoing portfolio monitoring to mitigate risks.

    Investing in unit trusts is straightforward, with many financial institutions, fund management companies, and investment platforms offering user-friendly interfaces and online platforms. These platforms provide educational resources, investment guides, and customer support to assist novice investors in navigating the investment process.

    By simply opening an investment account, individuals can commence investing in fixed income unit trust funds, benefiting from professional management and diversification these investment vehicles offer.

    Providing Steady Returns

    “Fixed income investments offer regular fixed and predictable payments, ensuring investors a steady income stream regardless of market fluctuations.”

    The table below broadly outlines some of the distinctions between fixed income investments and other types, such as fixed deposits and equity securities:

    Fixed Deposit Direct Fixed Income Investments Fixed Income Unit Trust Funds Equities
    Returns Fixed interest rate Regular coupon payments/dividends Regular income distribution Capital appreciation/ share dividends
    Capital preservation Yes Yes Yes No
    Liquidity High * Low High High
    Risk Low Low Low High

    * Fixed deposits typically offer high liquidity, yet investors needing early withdrawal before the maturity date may forfeit some or all of the accrued interest income.

    Fixed income investments offer regular fixed and predictable payments, ensuring investors a steady income stream regardless of market fluctuations. Unlike shares, which may offer dividends subject to market conditions and company performance, fixed income payments are reliable.

    Individual fixed income securities require careful selection for building a diversified portfolio, while fixed income funds provide instant diversification by exposing investors to a broad range of bonds.

    Furthermore, investors in fixed income funds enjoy higher liquidity, enabling them to manage investments according to their financial needs. Conversely, fixed deposits usually entail a minimum lock-in period with penalties or restrictions on early withdrawals, potentially limiting access to funds.

    During periods of market volatility or economic uncertainty, fixed income securities tend to exhibit more stable price movements than equities, offering a buffer against market downturns and stability to the overall portfolio.

    This stability is particularly advantageous for risk-averse investors or those aiming to balance their portfolios with conservative assets. Allocating a portion of the investment portfolio to fixed income securities can mitigate the impact of market downturns and protect capital during turbulent times.

    The Lasting Impact of Fixed Income on Portfolio Returns

    Investors aiming for enduring impact on their portfolio returns should recognise the significance of fixed income investments in their overall strategy. While equities may promise higher potential returns, fixed income securities offer stability and consistency crucial for long-term financial success.

    The provision of a steady stream of income over time can help investors manage liquidity, meet financial needs and fulfil obligations, whether for retirement expenses, daily living costs or other life goals.

    Furthermore, fixed income investments contribute to portfolio diversification, boasting low correlations to equities, thus reducing overall portfolio risk and enhancing risk-adjusted returns. Building a well-balanced portfolio resilient to market fluctuations is key to achieving long-term financial goals.

    In conclusion, purposeful investing through fixed income involves recognising their unique benefits and integrating them into a comprehensive investment strategy. They are critical in constructing resilient portfolios and attaining long-term financial objectives.

    By furnishing steady returns, stability and diversification, fixed income investments significantly impact portfolio returns, enabling investors to reach their financial goals over time.

    Ultimately, the consistent income stream empowers investors with financial flexibility to identify and pursue growth opportunities. Whether expanding portfolios, funding new ventures or seizing market opportunities, the dependable cash flow allows for capitalising on growth prospects without compromising financial stability.

    ABOUT THE WRITER

    Heng Jeng Chyan is currently the Senior Client Investment Services Manager at Opus Asset Management Sdn Bhd. He is responsible for overseeing a team that provides investment solutions and support to clients.

  • Leveraging the AI Advantage

    Leveraging the AI Advantage

    By Jeannie Cotter

    “The global AI market is projected to reach a staggering US$15.7 trillion by 2030.” – PwC (Global Artificial Intelligence Study: Exploiting the AI Revolution)

    The boundaries between humans and artificial intelligence (AI) continue to blur, rendering the concept of soulless, impersonal machines as archaic notions of the past. Who would have ever thought that AI bots, once imagined as such, would bear whimsical and evocative names like Bard, Bing, ChatGPT or Claude, each moniker hinting at the vast potential and enigmatic nature of these technological marvels?

    In today’s fast-paced digital landscape, innovation is the currency of success, and AI is the game-changer businesses can’t afford to ignore.

    As the world becomes increasingly digitalised, businesses are facing unprecedented challenges and opportunities. To stay ahead of the curve, companies must embrace the transformative power of AI and harness its potential to drive innovation, streamline operations and gain a competitive edge.

    The global AI market is projected to reach a staggering US$15.7 trillion by 2030, according to a report by PwC. This exponential growth is fuelled by the increasing demand for intelligent systems across various industries, from healthcare and finance to manufacturing and retail.

    A recent Kaspersky study has revealed that nearly two in every three (61% and 64%) companies in Asia Pacific (APAC) have implemented artificial intelligence (AI) and Internet of Things (IoT) in their businesses’ infrastructures. Additionally, 28% and 26% are planning to adopt AI and IoT within two years.

    The Rise of Generative AI

    Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation.”

    One of the most exciting developments in the AI landscape is the emergence of generative AI models like ChatGPT, text-to-video and text-to-image tools. These cutting-edge technologies are revolutionising the way businesses approach content creation, product development, and customer engagement.

    ChatGPT, a large language model developed by OpenAI, has captured the imagination of the business world with its ability to generate human-like text on virtually any topic. From writing reports and marketing materials to generating code and analysing data, ChatGPT has the potential to significantly enhance productivity and creativity.

    According to a survey by Statista conducted across four Southeast Asian countries in 2023, 62% of businesses would likely or very likely use AI-powered chatbots such as ChatGPT for online search purposes in the future. This adoption rate highlights the growing recognition of the value these tools can bring to organisations.

    Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation. These tools enable businesses to generate high-quality videos and images from simple text prompts, revolutionising the way they engage with customers and communicate their brand narratives.

    A study conducted in 2023 by the software firm HubSpot found that video was the most popular and effective media format for companies, with 50% of marketers leveraging video in their marketing strategy, followed closely by images at 47%.

    Improving Operational Efficiency with AI

    While generative AI tools are capturing headlines, businesses are also leveraging AI to optimise their internal operations and streamline processes. From predictive maintenance in manufacturing to fraud detection in finance, AI is playing a crucial role in enhancing efficiency, reducing costs and minimising errors.

    According to a report by Accenture, high-performing organisations that have successfully implemented AI in their operations have seen a 50% increase in revenue by using AI. On the other hand, fintech companies that implement chatbots were projected to realise cost savings of US$7.3 billion in 2023, according to a report by Juniper Research.

    AI-Powered Customer Experience

    “A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.”

    Beyond operational excellence, AI is transforming the way businesses interact with customers. Intelligent chatbots and virtual assistants are revolutionising customer service, providing 24/7 support and personalised experiences. Additionally, AI-powered recommendation systems are enhancing e-commerce platforms, offering tailored product suggestions and increasing customer satisfaction.

    A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.

    KFC exemplifies how brands can use AI to deliver personalised shopping experiences. The fast-food chain teamed up with Chinese search engine Baidu to develop facial recognition technology capable of predicting customer orders. The system analyses estimated age and mood to recommend menu items tailored to each individual.

    For instance, a 20-year-old male might be offered a crispy chicken sandwich, roasted wings and a coke, while a 50-year-old female could receive suggestions for porridge and soybean milk. This approach streamlines ordering while providing a level of personalisation that resonates with many patrons.

    In the cosmetics industry, Sephora enhances its customer experience through an AI-powered Virtual Artist app. Leveraging augmented reality, the app scans users’ faces, allowing them to virtually ‘try on’ various makeup products before purchasing. This interactive feature guides informed buying decisions while injecting an element of fun into e-commerce.

    These use cases across the food and cosmetics industries exemplify how AI can significantly elevate customer experiences within diverse sectors by enabling personalised, seamless engagement.

    Maximising AI in Customer Service

    By incorporating these practices, businesses can harness the power of AI to optimise customer service while maintaining a human touch.

    AI as Support, Not Replacement: Utilise AI to enhance customer service, focusing on streamlining processes rather than replacing human interaction. Identify areas for automation, such as handling routine queries, while reserving human intervention for emotionally charged situations.

    Reducing Wait Times: Employ AI to swiftly address simple queries, minimising wait times and ensuring prompt customer engagement. By allowing AI to handle basic tasks, human agents can focus on more complex issues, fostering a seamless customer experience.

    Automating Communication: Leverage AI to automate various aspects of customer communication, including follow-ups, email drafting and CRM data retrieval.

    Crisis Detection and Alerts: Utilise AI’s natural language processing to detect shifts in customer behaviour or emotions, enabling proactive crisis management. Set up alerts to notify service teams of potential issues and intervene when necessary, maintaining customer satisfaction.

    Ethical and Responsible AI

    While the potential benefits of AI are undeniable, businesses must also grapple with the ethical and responsible deployment of these powerful technologies. Issues such as data privacy, algorithmic bias, and transparency are critical considerations that cannot be overlooked.

    The 2024 Edelman Trust Barometer: Insights for Tech report reveals that AI stands at a critical juncture. Worldwide, 30% of participants welcome the innovation, while 35% oppose it. Over the last five years, trust in AI companies has declined globally, dropping from 62% to 54%.

    Among those who harbour reservations about the increasing adoption of AI, their primary concerns include privacy issues, fears of AI dehumanising society, insufficient testing and evaluation and the potential for harm to individuals and communities.

    In response, businesses must prioritise the development of robust governance frameworks and invest in AI ethics training to ensure their AI systems are fair, transparent and aligned with societal values.

    As businesses integrate AI and other interconnected technologies, cybersecurity emerges as a critical concern. According to Adrian Hia, Managing Director for Asia Pacific at Kaspersky, “Undoubtedly, new technological tools play a vital role in improving the efficiencies and productivity of enterprises in the region. However, there are loopholes, particularly in cybersecurity, that need to be addressed.

    “Our recent study showed more than half of the companies are using AI and IoT in their organisations, but 21% of them think AI and IoT are somewhat difficult to protect. It shows that there is a skills and knowledge gap that needs to be patched with urgency.”

    Ivan Vassunov, Vice President, Corporate Products at Kaspersky, echoes this sentiment, stating, “Interconnected technologies bring immense business opportunities, but they also usher in a new era of vulnerability to serious cyberthreats. With an increasing amount of data being collected and transmitted, cybersecurity measures must be strengthened.

    “Enterprises must protect critical assets, build customer confidence amid the expanding interconnected landscape, and ensure there are adequate resources allocated to cybersecurity so they can use the new solutions to combat the incoming challenges of interconnected tech.”

    The Road to Unlocking AI’s Full Potential Responsibly

    The AI revolution is here, and businesses that fail to embrace it risk being left behind. As the world becomes increasingly interconnected and data-driven, the ability to harness the power of AI will be a defining factor in determining long-term success.

    However, the journey towards AI adoption is not without its challenges. Companies must navigate the complex ethical and security landscapes that come with these powerful technologies. Building a robust AI governance framework, prioritising responsible and ethical AI practices and investing in cutting-edge cybersecurity solutions are crucial steps in mitigating risks and ensuring the safe and trustworthy deployment of AI systems.

    Ultimately, the true competitive advantage lies not just in adopting AI, but in doing so in a way that aligns with societal values, respects privacy and fosters trust. By striking this delicate balance, businesses can unlock the full transformative potential of AI, driving innovation, enhancing efficiency and delivering exceptional customer experiences.

    Those who approach it with foresight, responsibility and a commitment to ethical practices will be the ones who truly unleash the power of this revolutionary technology and secure a lasting competitive edge.

    Securing the AI Revolution

    Given the scale of change that interconnected technologies like AI are likely to bring, organisations must develop a strategy to implement and protect them. Based on research findings, Kaspersky recommends four effective ways to ensure organisations are prepared to protect interconnected technologies:

    1. Adopt secure-by-design principles. By integrating cybersecurity into each stage of the software development lifecycle, secure-by-design software and hardware become resilient against cyberattacks, contributing to the overall security of digital systems. Cyber immune solutions allow companies to minimise the threat surface and significantly decrease the ability of cybercriminals to perform a successful attack.
    2. Train and upskill your workforce. Building a cyber-aware culture requires a comprehensive strategy that empowers employees to gain knowledge and put it into practice. With the right cyber-security training, IT professionals can advance their skills and defend their companies against attacks.
    3. Upgrade your cybersecurity solutions. As companies adopt interconnected technologies like AI, they need cybersecurity solutions with advanced features, enabling them to collect and correlate telemetry from multiple sources and provide effective threat detection and rapid automated response. For AI solutions built on containers, it’s important to secure the infrastructure with container security solutions, which allow companies to detect security issues at every stage of the app lifecycle.
    4. Meet regulations. Avoid legal problems or reputational damage by ensuring your cybersecurity practices meet changing standards and legal requirements.

    By following these recommendations, organisations can harness the power of AI and interconnected technologies while mitigating the associated cybersecurity risks.

  • SC Launches GROWMatch To Bridge Financing Gaps and Drive Sustainable Growth in Agri-Business

    SC Launches GROWMatch To Bridge Financing Gaps and Drive Sustainable Growth in Agri-Business

    The Securities Commission Malaysia (SC) today unveiled GROWMatch, a new matching
    initiative that allows agri-business entrepreneurs to showcase their projects and attract
    necessary funding.

    This initiative aims to address the financing gap faced by agri-businesses and promote
    sustainable growth in the sector.

    The Minister of Digital, YB Tuan Gobind Singh Deo delivered the keynote address at the
    event. Alternative financing options in the capital market can help spur the country’s
    economic growth and address food security challenges.

    GROWMatch taps into equity crowdfunding (ECF) and peer-to-peer financing (P2P)
    platforms to support micro, small, and medium-sized enterprises (MSMEs) in strategic
    and underserved sectors.

    Since their inception, both ECF and P2P platforms have helped over 18,000 MSMEs raise
    nearly RM8 billion in funding as of June 2024.

    GROWMatch, which is aligned with the SC’s Five-Year Roadmap (2024-2028) for MSMEs
    and mid-tier companies, is focusing on providing risk capital through private markets.
    Its partners1, which include venture capital firms and government agencies, play a key
    role in mentoring applicants, refining their business strategies and connecting them with
    investors.

    The SC Chairman Dato’ Mohammad Faiz Azmi highlighted that GROWMatch leverages the
    strengths of diverse ecosystem partners to provide comprehensive support and resources
    for food security innovators, especially small companies facing funding challenges.

    “GROWMatch not only connects entrepreneurs with investors, but also offers mentorship
    and resources to help them succeed in the competitive market,” he said at the launch.

    “The diversity and focus on innovative and sustainable tech-driven solutions by the
    shortlisted companies in GROWMatch signal a promising future for the agriculture
    industry, and the capital market is excited to support these entrepreneurs,” he added.

    The GROWMatch pitching session today saw 20 shortlisted entrepreneurs presenting
    innovative solutions to ECF/P2P partners, vying for various financing options in the food
    security value chain.

    Selected from over 70 applications, these entrepreneurs stood out for their track record,
    business model and execution strategy.

    At the event, the also SC signed a Memorandum of Understanding (MoU) with the Malaysia Digital Economy Corporation (MDEC), Selangor Information Technology and Digital Economy Corporation (Sidec), Universiti Putra Malaysia (UPM) and Impact Circle.

    The MoU seeks to promote food security self-sufficiency through alternative financing. It
    combines diverse expertise to develop, incubate and finance opportunities that support
    agripreneurs scale their business and contribute to the overall goal of achieving food
    security.

    For more information on GROWMatch and the full list of 20 shortlisted companies, visit
    https://www.scxsc.my/new/programmes/pitch-amp-match/growmatch

     

    Image ‘Designed by Freepik’

  • FedEx Introduces Surround® Monitoring and Intervention Solution to Enhance Global Supply Chain Visibility

    FedEx Introduces Surround® Monitoring and Intervention Solution to Enhance Global Supply Chain Visibility

    The FedEx Surround® monitoring and intervention tools integrate seamlessly with the company’s existing transportation network, enhancing its robust suite of shipping and tracking solutions. With three levels of service for customers to choose from that comprise of Select, Preferred and Premium, the tools support a wide range of industries including healthcare, aerospace, high-tech, providing critical updates and interventions that ensure the integrity and timely delivery of sensitive shipments.

    With the FedEx Surround® monitoring and intervention suite, FedEx provides three key benefits to its customers:

    1. Flexibility and Control– Surround® dashboard provides near real-time global visibility and predictive analytics using AI and SenseAware ID.
    2. Greater Value– Special handling code enhances operational capability, enabling prioritized boarding and handling, cold chain support and in- and out-of-network intervention.
    3. Peace of Mind– 24×7 expert support ensures proactive monitoring and intervention with dedicated teams at hubs, ramps, and stations, including customized reporting for customers.

    “At FedEx, we are constantly innovating to meet the evolving needs of our customers. With data-backed intelligent solutions and the introduction of FedEx Surround®, we are building smart logistics for our customers. The tools are not just about tracking; it’s about smartly intervening in real-time to ensure that shipments are not only monitored but also actively managed to mitigate risk. This is a game-changer for businesses relying on just-in-time delivery and high-stakes shipments,” said Kawal Preet, president, Asia Pacific, FedEx.

    The FedEx Surround® monitoring and intervention solution in Asia Pacific utilizes advanced sensor technology including SenseAware ID with near real-time data analytics to provide continuous monitoring and proactive interventions for shipments worldwide. FedEx has long been a pioneer in sensor-based logistics, providing advanced tracking of urgent and high value shipments. SenseAware ID uses a lightweight, compact sensor that transmits precise package location data every two seconds via Bluetooth Low Energy (BLE) to WiFi access points or established gateway devices throughout the FedEx network. Packages equipped with the SenseAware ID sensor are tracked hundreds of times versus dozens of times with traditional package scanning protocols, which provides an unprecedented amount of real-time data about the location of the shipment.

    FedEx has a strong commitment to innovation demonstrated by the strategic use of AI and machine learning technologies within the FedEx Surround® system. These technologies predict potential disruptions in the shipping process, allowing FedEx and its customers to swiftly make informed decisions. FedEx Surround® monitoring and intervention is set to transform the way businesses manage logistics, offering enhanced visibility and control over their supply chains.

    For more information on FedEx Surround® monitoring and intervention, and other innovations, please visit fedex.com.

    About Federal Express Corporation

    Federal Express Corporation is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. Federal Express Corporation uses a global air-and-ground network to speed delivery of time-sensitive shipments by a definite time and date.

    For further information, please contact:

    Shahira Amiera (Myra), Perspective Strategies                

    Tel        : +603 7491 3138

    Mobile : +60 12-644 0510

    Email   : shahira.amiera@perspective.com.my

  • SC’s Guidelines on Technology Risk Management Take Effect Today

    SC’s Guidelines on Technology Risk Management Take Effect Today

    The Guidelines were initially released in August 2023 for capital market entities to be familiar with risk management practices, which now expand beyond cyber security to include technology risks, among others.

    The revised Guidelines emphasise the significance of strengthening operational reliability, security and resilience against technology disruptions. The Guidelines also set out the SC’s expectations on risk management practices to be adopted by industry.

    The key areas covered include ‘change management’ process, third party service providers, reporting requirements, technology audit, board oversight and accountability over technology risks.

    The CrowdStrike outage highlights the vulnerability of our digital infrastructure and the widespread impact such incidents can have on organisations. It also emphasises the importance of regulations like the Guidelines in strengthening operational resilience practices.

    In light of this incident, it is imperative that all capital market entities recognise the importance of observing the Guidelines. This not only protects against immediate technology risks, but also builds a resilient, secure, and ethical technological landscape for the future.

    This initiative underscores the SC’s ongoing efforts to strengthen Malaysia’s capital market and investor confidence. The SC has updated various related guidelines today following the implementation of the Guidelines. The SC has also made available a list of updated Frequently Asked Questions (FAQs) on the Guidelines to provide further clarity to capital market entities.

    The revised Guidelines are available at https://www.sc.com.my/regulation/guidelines/cyber-risk-and-technology-risk .