Author: admin

Money Caused Breakup Among Four Close Friends, That’s Why it Is Important To Plan For The Succession Of A Business

The following story is based on an actual series of events, with some names and circumstances fictionalised. Any similarity to any person’s name, character, or history is entirely coincidental and unintentional. It is good to have a plan for the succession of a business.

Gerald, John, Steven and Mazlan were close friends, dating back to schooldays. So close they would get punished together for naughty things that schoolboys typically did.

The first two were involved in building up a successful business in manufacturing and distributing car interior accessories. At the same time, the latter two had also built up an equally successful business, this one in car exterior accessories.

Because of the obvious synergies involved, they decided to merge and apply for listing. The structure that was decided on was one where a holding company (Car Listco) was formed to hold the two operating companies as subsidiaries. 25% of the shares in Car Listco would be offered to the public.

Read: Tragic Procrastination On Estate Planning Documents

The Succession Of A Business: Case Study Of Four Shareholders

At the same time, the balance shareholding held by the four individuals would be swapped into an investment holding company (Holdco), which would then control Car Listco. The four shareholders held shares in Holdco with equal portions of 25% each. Car Listco was successfully listed and well received by the public, and the market price on listing was about twice the offer price.

The four shareholders were very happy with the high valuation, translating into approximately RM60 million above the pre-listing value. And that was not all. Others were also prepared to pay a control premium for control of a listed company of some RM50 million at that time.

This kind of structure is, in fact, not uncommon for companies preparing for listing. Somewhat innocuous. Until the four shareholders disputed distribution, Car Listco performed well for many years, selling through a larger distribution network after the merger and declaring healthy annual dividends.

In the initial years after listing, Holdco received its share of dividends and distributed 80% of all it received, and shareholders were happy with the arrangement. But five years on, the first two shareholders, who were also partners in another business, began to have cash flow problems and pressured Holdco to distribute more, even suggesting liquidation of part of the stake in Car Listco.

This led to many arguments and fractured the close relationship the first two had with the other two, which puts a pressure on the succession of a business. Compounding the problem, Mazlan died, and his brother, the only next-of-kin, took over his directorship, which became the last straw because of his lack of trust and aggressiveness towards the other shareholders.

In the end, the shareholders decided to liquidate Holdco and distribute it individually to each shareholder to be free to do what they wanted with the shares. The result of this breakup was that the shareholders lost the control premium, therefore they have failed in ensuring the succession of a business.

Read: Being An Executor Of Will Is Not As Easy As It Seems To Be

How To Ensure The Succession Of A Business?

So what went wrong? How did a successful merger and listing end with a breakup and loss of control?

The crux of the problem was the lack of liquidity. The Holdco made up of friends’ stakes tied together at the outset was a mistake. While Car Listco shares owned by Holdco were liquid, the shares in Holdco were not, leaving no liquidity for shareholders in need.

It would have been better had 51% shareholding been locked up in Holdco and the balance distributed to the individual founders so that they would have liquidity. This would have avoided the disputes they went through before liquidation. In addition, it would have been good to plan the succession of a business, where shareholdings with a buy-sell arrangement, so that the founders would retain control when any of them exited.

Read: Unfulfilled Wishes, Learn How To Protect Yourself

About Rockwills International Group

Rockwills International Group, now in its 28th year, pioneered professional will writing in 1995 and has since evolved into the leading estate planning specialist in the country. It is today the largest provider of solutions and support services in trusts, succession, management and distribution of wealth. It has shareholders’ funds exceeding RM50 million. It has done over 280,000 wills and 15,000 trusts and holds more than RM25 billion in assets under trust.

March 13, 2023
5 Instagram Finance Influencer Accounts to Follow

If your life feels too much like a parallel to ABBA’s “Money Money Money”, it may be time to take a look at your finances. Even so, it still is a good time to think about managing it wisely. With so much being thrown around about inflation, recession, and that one friend who spews cryptocurrency news on the daily – it can seem overwhelming to those who do not know where to start. The ‘finance influencer’ is also fast becoming a niche on social media – and there are many of them; how do you know where to start, lest you get an information overload?

In an era where social media seems to be evolving at the speed of light – these platforms have also become a source of knowledge sharing. Different from financial vloggers or podcasts that usually take on a verbal, lengthy approach to dissecting every detail of the latest financial trend, Instagram finance influencer accounts rely on shorter, bite-sized information that can pique any doomscroller’s interest in a tiny square.

Whether it is through meticulously designed layouts to match the account’s branding, or a series of fun-filled comics that make even the most hesitant reader want to know more, here are five of such IG accounts that will help you consider important pitstops on your financial journey, and what you can do next.

For the youth: Financial Literacy for Youths

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Possibly one of the greatest misconceptions about one’s financial journey is that some may be “too young” to start – when really, the one thing that youths have as an advantage is time to begin saving so they can reap the rewards later. @flyouths, the Instagram account of the Financial Literacy for Youths organisation was started by students for students with the goal of empowering youths through education. What’s even more impressive is that their team of researchers and journalists all comprise Malaysian university students across the globe!

From short quizzes on Instagram Stories (also saved in a highlight reel, ICYMI) to breakdowns of world events such as the controversial ‘trickle-down economics’ plan or the long-term effects of EPF withdrawals – @flyouth ’s content is catered to today’s youth. Even if it may not spark a financial revolution just yet – at least those scrolling through their content will come away having learned something new.

For women empowerment: Her Duit

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Born out of the intention to share about finance from a female perspective, @her.duit has grown from being a podcast series on financial tips to one of the most shared Instagram accounts in the scene today. A passion project by Michelle Chin (who has since co-founded digital-first pet insurance company Oyen), the account explores the topics of debt, EPF i-investment, setting money goals and emergency funds in formats that are easy to digest.

@her.duit also poses weekly thought-provoking questions via its “My Money Mondays” to kickstart dialogues surrounding various topics so they can hear from the audience themselves. By creating posts that tackle important financial topics that resonate with women – @her.duit is on a mission to empower as many as possible to live their best financially secure lives – and we are here for it!

For those who need a helping hand: Dare to Finance

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@daretofinance, easily recognisable from its quirky DTF doodle is the brainchild of our friends from across the causeway. Aside from providing their two cents on all things finance (according to them, the other 98 cents is up to you!), they also have their very own fintech arm (Financial Pathway) that aids users in documenting, planning and managing their finances.

Run by a team from a variety of backgrounds – including financial advisors – @daretofinance provides opportunities for users to ask them any finance-related queries. They are also available on their YouTube channel, podcast, medium channel – so you can consume their content and interact with them in whatever method works best for you!

For visually impactful lessons: The Woke Salaryman

@thewokesalaryman, also started by a Singaporean probably needs no introduction – you’ve probably already seen them on your timeline! Providing financial advice through their own lived experiences, the account provides slice-of-life content depicted in a comic series, making it both engaging and memorable as one is able to glean their own learnings while swiping through short illustrations that make you think long after you reach the final frame.

Through a series of carefully and clearly explained content – and a little bit of humour – The Woke Salaryman is proof that finance does not need to be boring, and can be understood by all.

For those who want the best of both worlds: The Simple Sum

Need a little bit of advice with the help of visual aids? The Simple Sum, which got its start in Singapore (and is now present in Malaysia, Brunei, Philippines and Indonesia!) takes a tongue-in-cheek approach to the world of finance to help even those who are not in the know, get interested in how to manage their monies.

Whether it is breaking down the unspoken rule of having to fight for paying for the bill after a meal, living harmoniously with housemates without overspending or how credit card interest rates work, each topic is handled with local context and nuance to make it as relatable as possible to people like you and me, leaving a lasting impact on how all the little things in life add up to the sums you pay in your bank account.

By Grace Lim

March 13, 2023
Invest Malaysia Kuala Lumpur 2023: The Capital Market Conversation

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and Maybank Berhad (“Maybank”) today co-hosted the 21st instalment of Invest Malaysia (“IMKL 2023”) in Kuala Lumpur. Themed “Reshaping Malaysia’s Narrative: Strengthening Resilience & Sustaining Growth”, IMKL 2023 was officiated by the Honourable Dato’ Seri Anwar Ibrahim, Prime Minister of Malaysia.

To ensure that the Bursa Carbon Exchange (“BCX”) achieves its goal of greening our economy and to catalyse the voluntary carbon market, the Honourable Prime Minister announced the Government’s commitment to a RM10 million seed funding incentive to assure demand for Malaysian-generated carbon credits traded on the BCX. This commitment will encourage issuers and project developers to invest in the necessary efforts and processes to enable carbon credit issuance.

Another announcement made by the Honourable Prime Minister at IMKL 2023 was the LEAP Market Transfer Framework, whereby Bursa Malaysia will be enhancing current regulations to facilitate LEAP Market PLCs to transfer to the ACE Market. Concurrently, Bursa Malaysia will share further enhancements to the Approved Adviser Framework to expand the pool of sponsors and corporate advisers for the ACE Market.

The Honourable Prime Minister also announced that Bursa Malaysia will be working with the London Stock Exchange Group to launch a Centralised Sustainability Reporting Platform. This would enable companies − both publicly listed companies as well as non-listed SMEs − to calculate their carbon emission impact, and disclose common ESG datasets in a standardised manner that conforms to established global standards, such as the Task Force on Climate-Related Financial Disclosures (“TCFD”). Led by Bursa Malaysia, this pioneering initiative will include a consortium of two Malaysian conglomerates, their supply chain and a panel of banks.

“Bursa Malaysia always listens and adapts to the demands of the investing community. Following public feedback from the consultation paper issued earlier, we will soon be announcing the LEAP Market Transfer Framework, as well as the development of the Centralised Sustainable Reporting Platform,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “We believe these initiatives would increase the vibrancy and accessibility of our market, while better meeting the needs of market participants.”

“We are also pleased with the Prime Minister’s announcement that the Securities Commission Malaysia will extend the Waqf-Featured Fund Framework to include Islamic Real Estate Investment Trusts (REITS) and Islamic Exchange Traded Funds (ETFs). By offering this Waqf asset class and solution on the Exchange, it will further diversify our suite of Shariah-compliant listed products and more importantly, will provide an effective instrument to support our nation’s social development,” added Datuk Muhamad Umar Swift.

Dato’ Khairussaleh Ramli, Group President & Chief Executive Officer at Maybank, said, “A vibrant and robust capital market is a key component of Malaysia’s competitiveness that will help drive economic recovery. We welcome the measures announced by the Honourable Prime Minister at IMKL 2023 today and will continue to play our part in facilitating greater market participation and promoting Malaysia as an attractive investment destination.”

“Maybank believes that sustainability is key to building resilience and ensuring long-term growth. We are working closely with both the government and the corporate sector to execute the national sustainability agenda, and we are pleased to be part of Bursa Malaysia’s sustainable supply chain initiative to support our companies in their decarbonisation journey.”

Speakers at IMKL 2023 included the Honourable Mohd Rafizi Ramli, Minister of Economy who touched on measures to strengthen Malaysia’s economic resilience; the Honourable Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of International Trade & Industry who shared his views on enhancing Malaysia’s competitive edge; the Honourable Ahmad Fahmi Mohamed Fadzil, Minister of Communications & Digital spoke about developing a digital ecosystem; and the Honourable Anthony Loke, Minister of Transport who shared plans about national infrastructure development. Delegates also heard from newly appointed Treasury Secretary General, Datuk Johan Mahmood Merican on Budget 2023, especially pertaining to strengthening fiscal reform.

“IMKL 2023 continues to be the capital market conversation for global fund managers and institutional investors to appreciate Malaysia’s competitive advantage as an attractive and sustainable investment destination,” concluded Datuk Muhamad Umar Swift. “We look forward to bringing the next instalment of IMKL, targeted to be held by the end of the first half 2023.”

The IMKL forum attracted approximately 1,500 delegates attending in-person and virtually, comprising local and foreign fund managers that collectively manage an estimated total AUM of USD10 trillion (approximately RM44 trillion).

The event was also live-streamed for public viewing on Bursa Malaysia’s Facebook page https://www.facebook.com/BursaMalaysia/.

About Bursa Malaysia

Bursa Malaysia is an exchange holding company incorporated in 1976 and listed in 2005, and has grown to be one of the largest bourses in ASEAN today. Bursa Malaysia operates and regulates a fully-integrated exchange offering a comprehensive range of exchange-related facilities, and is committed to Creating Opportunities, Growing Value. Learn more at www.bursamalaysia.com.

About Maybank

Maybank is among Asia’s leading banking groups and South East Asia’s fourth largest bank by asset. The Maybank Group has an international network of over 2,600 offices in Malaysia, Singapore, Indonesia, Philippines, Cambodia, Thailand, Vietnam, Myanmar, Brunei, Laos, India, China, UK, USA, Pakistan, Saudi Arabia, Uzbekistan, and Dubai. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 42,000 employees worldwide. (www.maybank.com).

March 8, 2023
Women in AI – Two Female Founders Team Up to Launch World’s First AI-Driven Marketing Strategy Platform

Brand Soul Malaysia, a leading brand strategy consultancy firm in Malaysia, launches the world’s first artificial intelligence (AI) driven marketing strategy platform in collaboration with Robotic Marketer. Recognised for its sustainable brand building and marketing strategy formulation, the new partnership with Robotic Marketer is a women- led venture by Stella Wong and Mellissa Smith, stepping towards building the future of marketing.

Over the last decade, Malaysian business owners have encountered unprecedented business challenges and struggled to expand their organisations under fierce competition to manage their brands effectively. Despite several government initiatives, most SMEs find it challenging to differentiate their brands in the global market due to weak branding and marketing strategies and a lack of digital marketing skills. Companies without a strategy or plan are at risk of spending more resources on ineffective campaigns and missing out on valuable opportunities.

With the launch of Robotic Marketer in Malaysia, Brand Soul intends to transform the branding and marketing landscape by becoming the sustainable brand and AI marketing partner for growing businesses, helping them to capitalise on AI and ChatGPT technology for better marketing ROI.

Another Women-Empowered Milestone

According to a report by Grant Thornton in 2021, Malaysia has achieved a new record with 37% of women occupying senior leadership positions. This partnership is a reflection of this achievement which has resulted from persistent efforts made over the years to enhance skills and expertise, enabling women to reach the pinnacle of the business world.

Stella Wong, Founder of Brand Soul

“We are thrilled to be the leading licensee of Robotic Marketer in Malaysia to extend our service offerings. With ChatGPT technology becoming the buzzword in almost every industry, we aim to become Malaysia’s first branding and marketing consultancy that puts technology and experience into real practice. Our goal is to help our clients succeed by making marketing easier, more efficient and more cost-effective,” says Stella Wong.

“The marketing automation platform is a game-changer for businesses as we give them full control over their marketing performance, with up-to-date data analysis, reporting and full visibility of marketing strategy performance in one single platform. One of its key features is creating a comprehensive marketing plan with the target audience and competitor insights and marketing tactics aligned to key marketing objectives. It also features a 12-month marketing calendar with real-time data and industry benchmarking analysis. We cannot wait to see how it disrupts the traditional marketing methods and helps businesses to grow,” adds Stella Wong.

Mellissah Smith, the CEO of Robotic Marketer, also comments on the partnership, stating, “We are delighted to partner with Brand Soul. When we were looking to expand into Asia, we sought a forward-thinking company that embraces technology to drive better marketing performance for their clients. We found that Brand Soul had accumulated respect in the industry working with companies that benefited from their creative approach and performance-centric brand marketing campaigns.

Mellissah Smith, CEO of Robotic Marketer

The leap into data-driven marketing strategies using artificial intelligence is a good fit with Brand Soul’s expertise in branding and marketing.”

Having worked closely with over 1000 companies across various industries with specialities in the branding and marketing sectors, the founders understand the fast-evolving nature of businesses. Individually they have also helped businesses drive their branding and marketing through the thick and thin of the pandemic and the current global situation.

Moving forward, Brand Soul will launch a series of AI marketing awareness programmes and introduce Channel Partnership Programme to help software companies and their channel partners develop go-to-market strategies to build brands and generate leads. Companies that Robotic Marketer work with across the channel include SAP, Oracle, Mitel and Zift.

Brand Soul will also offer Robotic Marketer as part of its branding and marketing services suite, including brand strategy, brand identity, digital marketing, seed marketing, content creation and more.

For more information, please visit Brand Soul’s official website at www.brandsoul.com.my or contact+017-513 6870.

About Brand Soul Malaysia

Founded in 2016, Brand Soul Malaysia is an independent, sustainable-driven, and innovative brand and marketing strategy design consultancy based in Kuala Lumpur.

Known for helping organisations to improve profitability and achieve sustainable growth through a data-driven approach, Brand Soul has revolutionised how branding & marketing is done with its differentiators, namely data-led brand strategy & identity framework, integrated web design & content strategy, precise marketing, and brand-centred training & development programmes.

Brand Soul’s innovative approach to branding and marketing led it to win several coveted awards. Brand Soul has worked with local and international clients, including Petronas, GDEX, Ho Wah Genting, Medtronic, Viewpoint, Yinson and more.

March 8, 2023
KOSSAN’s ‘Greening Value Chain’ With PANTAS

The Greening Value Chain Programme (GVC) has been successfully rolled out by Kossan Rubber Industries (“KOSSAN”) together with its climate solutions partner, Pantas Software (“PANTAS”). This programme was previously launched by Bank Negara Malaysian (“BNM”) in conjunction with the Finance Day at COP-27, in Egypt^[1]. The event was held in attendance of Suhaimi Ali (Assistant Governor of Bank Negara Malaysia), Tan Sri Dato’ Lim Kuang Sia (Group Managing Director & CEO of Kossan Rubber Industries Berhad) and Max Lee (Chief Executive Officer, Pantas Software Sdn Bhd).

The programme aims to assist and incentivise carbon emission management among KOSSAN’s small medium enterprise (SME) suppliers, making them the strategic SME suppliers of KOSSAN. This programme enables these suppliers to access BNM’s Low Carbon Transition Facility (LCTF) of RM2 billion to fund SMEs’ working capital or capital expenditures related to low-carbon practices at an affordable rate.

To achieve this, PANTAS, a Malaysia-based climate-tech solution, will assist the SMEs to begin measuring GHG emissions and report on sustainability indicators in a consistent and efficient manner to help achieve national carbon reduction targets. The SMEs will receive free access to carbon accounting software solutions developed by PANTAS along with training and consultation services provided by GVC service provider partners such as Malaysia Green Technology and Climate Change Corporation (“MGTC”), Credit Guarantee Corporation Malaysia Berhad (“CGC”), British Standards Institution (“BSI”), and AmBank Berhad (“AmBank”) to kickstart their carbon management journey. The programme is supported by the Joint Committee of Climate Change (“JC3”) which is co-chaired by BNM and Securities Commission Malaysia.

As Tan Sri Dato’ Lim Kuang Sia, Group Managing Director and CEO of KOSSAN said in his speech, “This programme is a great representation of KOSSAN’s values. As part of KOSSAN’s L.I.V.E Sustainability Policy, we believe that to succeed in our sustainability journey, we need to strengthen our partnership and collaboration. This programme is a win-win-win relationship for our suppliers and KOSSAN, which also benefits the environment. This is one example of our commitment to creating shared values with our partners because we believe that our sustainability journey is a path to take together”.

PANTAS CEO and Co-founder, Max Lee stated, “We believe that an integrated software solution, relevant training and awareness are essential to get SMEs onboard KOSSAN’s sustainability efforts to ensure a just transition. Apart from assisting SMEs in measuring and disclosing the relevant climate data, PANTAS will also work with partners to help SMEs set and achieve carbon reduction targets.”

Following the GVC programme rollout, PANTAS and the selected service provider partners will hold regional training sessions to equip SME suppliers with valuable insights into climate change, including the importance and methods of carbon management and reporting. Additionally, SMEs will gain an in-depth understanding of the assurance process and access to climate-related financing products. The first training session will be held on March 21st, 2023 in Lanai Kijang, Kuala Lumpur.

Tan Sri Dato’ Lim Kuang Sia, Group Managing Director and Chief Executive Officer of Kossan Rubber Industries Bhd., said in his speech, “This programme is a win-win-win relationship for our strategic suppliers and KOSSAN, which also benefits the environment.”

Max Lee, Chief Executive Officer of Pantas Software Sdn. Bhd., said in his speech, “We believe that an integrated software solution, relevant training and awareness are essential to get SMEs onboard KOSSAN’s sustainability efforts to ensure a just transition.”

About GVC Programme

The GVC programme is an initiative by Bank Negara Malaysia together with the GVC strategic partners, which was announced at the COP-27 conference in Egypt in conjunction with Finance Day on 9 November 2022. The programme is envisaged to help SMEs begin their journey in sustainability reporting, to tackle climate change and reduce the nation’s carbon footprint. This programme incentivises and assists Malaysian SMEs in implementing impactful, long-term change to green their operations and benefit from the technical advisories and software tools from services provider partners and climate transition financing from the Low Carbon Transition Facility (LCTF) by Bank Negara Malaysia. Climate change is one of the biggest challenges facing our planet, and GVC strategic partners remain committed to doing its part in addressing this global crisis.

About KOSSAN

KOSSAN is one of the largest manufacturers of disposable gloves in the world and one of the largest technical rubber product manufacturers in Malaysia. With its long-term sustainable growth model, KOSSAN continues to forge solid partnerships and strategic client relations and remains committed to serving the needs, particularly of the healthcare, cleanroom and safety sectors for the Gloves division, and in industries such as automotive, infrastructure, marine, aviation, rail and mining for the Technical Rubber Products division.

For more information on KOSSAN and our products, please visit www.kossan.com.my

About Pantas

Pantas Software is a Malaysian climate-tech startup that provides companies with end-to-end climate solutions to calculate, manage and disclose their carbon emissions. The proprietary AI-enabled software includes a customised climate data collection tool, along with error detection and prevention features to produce an actionable climate plan based on international standards. Pantas also provides financial institutions and institutional investors with climate due diligence solutions to manage climate investment risk.

For more information on Pantas’ platform and services, please visit www.pantas.com

^[1]https://www.bnm.gov.my/-/cop27-gvc-lctf

March 7, 2023
Using The CANSLIM Formula To Choose Good Stocks

CANSLIM is an investment strategy popularized by William J. O’Neil, the founder of Investor’s Business Daily. He is an investor, stockbroker, and author.

The CANSLIM formula is a systematic approach to stock picking and portfolio management that emphasizes the importance of following rules and guidelines.

The CANSLIM Formula To Choose Good Stocks

Now that we are done with the introduction let’s look at how we can use the CANSLIM formula to choose good stocks.

C – Current Earnings and Earnings Growth

This component of the CANSLIM formula emphasizes the importance of finding stocks with strong earnings growth. This means looking for companies that have consistently posted strong earnings reports and are expected to continue to do so.

The emphasis is on finding companies that have been able to deliver consistent earnings growth and have a strong track record of delivering on their financial commitments.

Read: Investing VS Trading, Which One Is Suitable For Me?

A – Annual Earnings Increase

The annual earnings increase component of the CANSLIM formula is all about finding stocks with a strong upward trend in earnings. This means looking for companies that have posted year-over-year increases in earnings and are expected to continue doing so in the future.

N – New Products, Services or Management

The new products, services or management component of the CANSLIM formula is all about finding companies that are innovating and introducing new products or services to the market. This component also emphasizes the importance of having a strong management team, as a well-run company is more likely to succeed in the long term.

S – Supply and Demand

This component of the CANSLIM formula is all about understanding the forces of supply and demand and how they impact the price of a stock. In general, stocks with strong demand and limited supply perform better than those with weak demand and abundant supply.

Read: Fundamental Analysis vs Technical Analysis

L – Leader or Laggard

The leader or laggard component of the CANSLIM formula is all about finding stocks performing well compared to their peers. This means looking for companies outpacing their competitors in earnings growth, sales growth, and market share.

I – Institutional Sponsorship

The institutional sponsorship component of the CANSLIM formula is all about finding stocks backed by large institutional investors. This means looking for companies with a large base of institutional shareholders likely to receive continued support from these investors.

Read: 5 Investing Lessons from Warren Buffett’s Letters

M – Market Direction

The market direction component of the CANSLIM formula emphasizes the importance of timing your investments based on the market’s overall direction. This means looking for opportunities to invest in the stock market in a long-term uptrend and avoiding investments in a downtrend.

CANSLIM formula is designed to help investors identify stocks with strong earnings growth, solid management teams, and favorable market conditions. By following the guidelines of the CANSLIM formula to choose good stocks, investors can increase their chances of success and avoid common mistakes such as investing in stocks with poor earnings growth or investing in the stock market during a bear market.

In conclusion, the CANSLIM formula to choose good stocks is a comprehensive investment strategy many investors have used to build successful portfolios. While it is not a guarantee of success, following the CANSLIM formula can help investors make informed decisions and minimize their risk of loss.

Hope that you now know how to use the CANSLIM formula to choose good stocks. But as with any investment strategy, it is important to do your research and due diligence before making investment decisions.

Read: Where Market Is Heading And Why I Should Not Care

March 7, 2023
Renting VS Buying: When You Should Rent And When You Should Buy
Renting vs buying is one of the hottest topics around town. This is for those who can’t decide whether to purchase a house in 2023 or keep renting until you can afford a home!

Purchasing your own home or property is one of the biggest achievements in life. The concept of putting a big amount of money into such an asset is overwhelming, and it is something that requires careful consideration.

Economists anticipate a contraction in the global economy in 2023, although most economies worldwide have largely returned to normal operations since the COVID-19 epidemic.

It’s also important to consider the costs associated with purchasing a home, which include mortgage payments, stamp duty, legal fees, valuation fees, mortgage insurance (MRTA), and real estate agent fees.

Yet, on the other hand, like most Malaysian millennials, you are probably sick of paying a sizable portion of your monthly rental income. And wouldn’t it be lovely to own your home, which could lead to a future period of strong capital growth?

Read: Is Malaysia Property Still Worth To Invest In?

Nonetheless, there are several grey areas in the renting vs buying decision. In the end, everything relies on the situation and future goals of the individual.

Did you know that based on the recent findings by National Property Information Centre (NAPIC), Malaysia’s median house price is RM320,000? But as you can see from the photo below, there is a huge median price difference across states in Malaysia.

According to NAPIC, the median home price in Malaysia in 2022 was RM320,000, up from RM305,000 in 2021. However, it fell to RM295,000 in Q1. The most expensive states to own a home in are Putrajaya, Kuala Lumpur, and Selangor, but this price differs. The median home price in Kedah and Melaka is RM220,000, which is half that of Kuala Lumpur.

Does it also depend on your location and whether you should rent or buy a house? There is no accurate answer to that. It all depends on you.

Yes! Every one of you has different life commitments, needs, and others.

Read: Do You Have The Patience To Make Money In Property?

Renting Vs Buying: Is Owning a Home Cheaper Than Renting?

We’ll use a renting vs buying calculator to estimate how much renting versus buying will cost.

Consider that you have decided to purchase a condominium at Setia Alam in Selangor for RM560,000. You will need to pay
- 10% upfront as a down payment
- 4% as a closing fee (legal fees, stamp duty and valuation fees)
- 3% Home Insurance
- Monthly payments of about RM2,500
- RM250 maintenance fee
The following are used to compute this:
- 10% down payment
- 4.25% interest rate
- 30-year loan term.
In contrast, the identical unit will cost you RM2,100 monthly to rent. You must pay the following before committing: RM5,750 as a down payment (equivalent to 2.5 monthly rent)

The renting vs buying Calculator makes the following assumptions:
- Property values grow by 2% year over year.
- Rental rates for the same properties increase at a 2% YoY rate.
- 4.0% as an investment yield (the percentage of annual earnings from investment in FD, stocks etc.)
Renting VS Buying: Cost

After 6 years, your total cost of homeownership (down payment, mortgage, taxes, etc.) for an RM560,000 home in Malaysia would be RM829,577. Renting leaves you with RM616,246 in your pocket (including the money you didn’t spend on a down payment).

Renting VS Buying: Gain

After 6 years, if you buy, your home will have RM181,393 in equity (available to you when you sell). However, if you instead rent and invest your down payment and the other money you save, at a 4% return rate, it will earn around RM17,602 in 6 years.

Looking at your gross costs, equity and investment potential, buying is better for you to buy than renting if you plan to live in your home for more than 6 years.

As a result, it is better for you to only invest in a property that you are positive will meet your and your family’s needs over the long run. Dont forget about RPGT! It must also be considered by buyers who intend to upgrade in 5 years or fewer.

Remember that this is only an example for us to understand and see the whole picture. Prices for buying and renting property can vary significantly depending on the type of dwelling, the age of the property, and the location.

There are many other factors in deciding whether buying or renting is better for you. However, one of the easiest and fastest ways to do it is by using a renting vs buying calculator.

You should experiment with the renting vs buying calculator to determine whether buying your property right now makes sense.

In conclusion, the decision to rent or buy property in Malaysia ultimately comes down to one’s circumstances, financial status, and market trends. For those not yet ready to make a long-term commitment or who need flexibility, renting may be a better option.

On the other hand, buying a property may be a better choice for those looking for stability and long-term investment. It is important to consider all factors and make an informed decision based on needs and circumstances.

Read: How To Save 50% Of Your Housing Loan Interest In Half The Time, And Get Your Dream Car For Free
March 6, 2023
The Smart Investor’s Guide to Insurance
Insurance is an essential aspect of financial planning. Think of insurance as a cushion. If tragedies or accidents occur, insurance acts as a financial cushion to protect what matters most to you – be it your loved ones, your assets, or your business.

Before the Covid-19 pandemic, insurance was considered a ‘nice-to-have’ instead of ‘must-have’. However, the pandemic shook up the general perception of insurance as people started to realise the importance of having a financial safety net to shoulder against life’s uncertainties.

Even so, many do not understand what insurance is, how it works and the types of insurance available.

Insurance is usually a financial cushion to protect you and your family. | Credit: fernandozhiminaicela

What is insurance and how does it work?

In a nutshell, insurance is a contract (deemed as a policy), whereby policyholders receive financial protection against losses resulting from an unforeseen event.

Policyholders pay a fixed premium on a monthly, quarterly, semi-annually or annual basis to an insurance company which pools risks to hedge against potential losses. Financial planners recommend setting aside 6% of your monthly income for insurance.

How do I know which insurance to purchase?

Some simple calculations like what you can afford and how much coverage you’d need would be what you would consider before buying a policy. | Credit: stevepb via Pixabay

Before you purchase an insurance policy, it is important to ask yourself:
1. Your financial commitments: What is your debt situation? How would you manage your financial risks if you were to lose your job, or for your family manage if you were to pass on?
2. Your dependents: If you were to lose your job or pass on, would your dependents be able to manage financially? How much would your dependents need to cover living costs?
3. Your medical history: Is there a history of critical illness such as cancer or stroke in your family? Do you smoke?
4. The nature of your job: Do you have a high-risk job, a physically demanding job or a job that requires frequent travelling?
5. Your assets: Is your property insured against potential theft, fire, flooding, burst pipes or earthquake risks? Are you able to sustain losses or damages to your vehicle in the event of accidents, theft or fire?
Based on your answers above, you would have a clearer idea as to the types of insurance as well as the policy limit (sum insured) that you would require.

What are the types of insurance?
1. Life Insurance or Takaful
People often confuse life insurance and health insurance. Life insurance is essential primarily if you have debt or a spouse/dependents relying on your income. Your life insurance company pays a lump sum benefit to your next of kin to serve as a financial relief in the event of your demise or total permanent disability.

Takaful is an Islamic financial product that is regulated through the Islamic Financial Services Act 2013 and is Shariah-compliant. Do note that it is not considered ‘Islamic insurance’, even though that’s what many seem to regard it as such. Unlike conventional life insurance, Takaful participants contribute or donate an amount to a tabarru fund, from which the mutual risk of losses is borne based on the Islamic principles of brotherhood.
- Health or Medical Insurance
If you are diagnosed with an illness, there are both direct and indirect costs involved. On top of direct costs such as your medical expenses, your illness may affect your ability to work, pay off debts or afford living expenses.

According to Aon’s 2023 Global Medical Trend Rates Report, medical inflation in Malaysia stands at 12% and is expected to rise. Medical insurance or commonly known as a medical card is a policy that reimburses your medical expenses in the event of illness, hospitalisation or surgery.

There are many medical cards in the market, with some starting from as low as RM5-10 per month. It is not mandatory but some employers include medical insurance as a fringe benefit which only covers up to a certain limit.

Illness can strike at anytime changing the course of your life; so it’s better to always be prepared. | Credit: geralt via Pixabay
- Critical Illness Insurance
Based on your family and medical history, consider purchasing critical illness insurance on top of a medical card. A critical illness policy offers a lump sum payout as an income replacement if you are diagnosed with cancer, stroke, heart attack and so forth.
- Personal Accident Protection
If you are a frequent traveller or involved in a physically demanding job, personal accident insurance is ideal for you as it covers medical expenses incurred from an accident, travel inconveniences or sickness resulting from travelling.
- Property Insurance
After spending your hard-earned money on your home or property, the last thing you would want is to leave it unprotected from potential risks such as fire, theft, flood and natural disasters. Though property insurance is not compulsory in Malaysia, it is worth purchasing as it is not too costly.
- Motor Insurance
Car or motor insurance is mandated by the Road Transport Department (JPJ) Malaysia, as you will not be able to apply for road tax without having a policy. In case of an accident, fire or vehicle theft, a comprehensive motor insurance covers damages and losses associated with the third-party injury as well as you or your authorised drivers who are driving the vehicle.

Getting started with insurance may be an overwhelming process. Rest assured, it is not necessary to purchase all types of policies, only the ones you truly need.

A great way to start is with the essentials such as medical and life policies. Afterwards, you can schedule a regular policy review to assess your evolving protection needs.

By Mabel Yan

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March 6, 2023
Bursa Malaysia And Maybank To Co-Host Invest Malaysia Kuala Lumpur 2023

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and Maybank will co-host the 21st instalment of Invest Malaysia (“IMKL 2023”) on 8 March in Kuala Lumpur. The forum, which is Malaysia’s largest annual capital market gathering, is expected to attract an estimated 1,000 local and foreign fund managers, attending in person and online, with an estimated total AUM of USD10 trillion (approximately RM44 trillion).

Themed “Reshaping Malaysia’s Narrative: Strengthening Resilience & Sustaining Growth”, IMKL 2023 will provide an in-depth look at the strategic approaches and measures introduced in the recent re-tabled Budget 2023, which will support Malaysia’s long-term efforts to achieve sustainable development and economic growth. The conference will be inaugurated by Prime Minister YAB Dato’ Seri Anwar Ibrahim, who will deliver the Keynote Address, which is expected to focus on the country’s efforts to achieve high-income nation status while adhering to the values espoused in the “Malaysia Madani” concept.

“The recent budget reinforces Malaysia’s commitment to fiscal reform while addressing key concerns investors have when making investment decisions. The absence of a prosperity tax from this year’s budget also bodes well and encourages Malaysian companies to aim for higher earnings, thus raising their attractiveness to global investors,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

“Further, the tax incentives on listing fees for the ACE and LEAP markets, as well as for technology-based companies listed on the Main Market, will encourage the listing of more high-potential and innovative companies,” added Datuk Muhammad Umar Swift. “This would result in more investment opportunities and increased trading interest among investors while also helping us achieve our target of 39 listings for 2023.”

Dato’ Khairussaleh Ramli, Group President & Chief Executive Officer at Maybank said, “We are honoured to partner with Bursa Malaysia once again to bring IMKL 2023 to the investing community. The conversations at Invest Malaysia will provide a better understanding of Malaysia’s medium-term fiscal and economic strategy in sustaining development, enhancing competitiveness and resuming its growth trajectory. We believe that a holistic approach that balances social and economic needs is pivotal for the nation to strengthen its resilience and to sustain growth. This is reflected in Maybank’s own mission of Humanising Financial Services, driven by our M25+ strategy.”

IMKL 2023 will showcase the following conversations:

• YB Tuan Mohd Rafizi Ramli, Minister of Economy will discuss “Strengthening Economic Resilience”,
• YM Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of International Trade & Industry will share his thoughts on “Enhancing Malaysia’s Competitiveness”,
• YB Ahmad Fahmi Mohamed Fadzil, Minister of Communications & Digital will talk about “Developing a Thriving Digital Ecosystem”,
• YB Anthony Loke, Minister of Transport will discuss on “Infrastructure Development for Sustainable Growth”, and
• YBhg Datuk Johan Mahmood Merican, Treasury Secretary General, Ministry of Finance will share further details on “Budget 2023 Highlights and Strengthening Fiscal Reform”.

“IMKL 2023 will provide impetus to strengthen the key building blocks that will reinforce Malaysia’s reputation as an attractive investment destination in the region,” concluded Datuk Muhamad Umar Swift.

IMKL 2023 will be live-streamed for public viewing on Bursa Malaysia’s Facebook page at https://www.facebook.com/BursaMalaysia/ on Wednesday, 8 March 2023 starting at 10.00am.

About Bursa Malaysia

Bursa Malaysia is an exchange holding company incorporated in 1976 and listed in 2005, and has grown to be one of the largest bourses in ASEAN today. Bursa Malaysia operates and regulates a fully-integrated exchange offering a comprehensive range of exchange-related facilities, and is committed to Creating Opportunities, Growing Value. Learn more at www.bursamalaysia.com.

About Maybank

Maybank is among Asia’s leading banking groups and South East Asia’s fourth largest bank by asset. The Maybank Group has an international network of over 2,600 offices in Malaysia, Singapore, Indonesia, Philippines, Cambodia, Thailand, Vietnam, Myanmar, Brunei, Laos, India, China, UK, USA, Pakistan, Saudi Arabia, Uzbekistan, and Dubai. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 42,000 employees worldwide. (www.maybank.com).

March 3, 2023
AWS’ Cloud Infrastructure Region To Accelerate Rate Of Innovation For Malaysia

Amazon Web Services’ RM25.5 billion investment into Malaysia – making it the first in the region for cloud computing infrastructure with 3 availability zones is a catalyst on many fronts.

MRANTI believes this will accelerate the rate of innovation as it opens up more bandwidth for Malaysian innovators to closely collaborate with leading science, technology and innovation teams across the value chain, from anywhere in the world, at speed and with greater capacity, reliability, availability, manageability and security. This will raise the stature of our R&D for commercialisation while elevating more Malaysian technologies to market.

This in turn, will enhance the country’s security of innovation supply.

AWS’s investment also opens up new pathways for upstream and downstream R&D services and solutions to be developed in Kuala Lumpur – which is ranked as a top 10 innovation hub in the region.

It will also help us draw in the right talent and move Malaysia up the innovation value chain as the next-generation cloud infrastructure system will support a host of technologies by high-growth companies, set to take flight in the coming years.

Malaysia is already a base for many leading multinational and leading technology companies, and we believe more will follow in AWS’ lead in this regard.

Dzuleira Abu Bakar, CEO MRANTI

MRANTI is committed to connecting investors and innovators to accelerate ideas to impact. In this regard, we look forward to collaborating with AWS and Malaysian institutions, startups, and companies to deliver cloud-powered applications to fuel economic development across the country and to spur job creation, skills training, and educational opportunities for communities.

Ultimately, it will serve the needs of the rakyat, business and industry – as outlined in the Ministry of Science, Technology and Innovation (MOSTI)’s strategic initiatives and framework to enable Malaysia to migrate from a technology consuming to a technology producing nation strongly based on an innovation-driven economy.

About MRANTI

MRANTI is the one-stop research commercialisation agency with the resources to accelerate the commercialisation of innovative ideas that will drive impact. As a connector, collaborator and catalyst, MRANTI will connect problem statements (demand) with solutions (supply), bridging collaboration between public and private sectors (transition); increase private sector participation, either through market access, investment, advisory or consultation and facilities for testing and prototyping.

March 3, 2023