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  • Financial Planning: Things to Do After a Flood

    Financial Planning: Things to Do After a Flood

    The 2021 year-end flood which affected many areas nationwide surpassed all previous year’s floods within Malaysia.  These has financial implications on the lives of our fellow Malaysians. For those affected, here are some ideas on how to pick up the pieces and build resilience moving forward.

    1. After the flood – restarting your life

    Consider the immediate aids you can leverage on to restart your life and get back on track. These can come in the form of financial, food, or accommodation aid, life essentials such as clothes and household items, or even transport arrangements for stranded individuals.

    2. Get your mental health in check

    Be sure to stabilise your frame of mind and check your stress level. There are a number of free services and apps such as:

    • Talian KASIH (8am – 5pm daily 15999, WhatsApp 019-261 5999)
    • Naluri (03-8408 1748, 24 hours, English, Malay and Mandarin)
    • Selangkah – Selangor Mental Sihat (SEHAT)
    • MySejahtera (Digital Health > Minda Sihat)

    3. Gauge your financial situation

    Once more urgent and pressing matters are taken care of, you can now take stock of your current financial situation. Ask yourself:

    • What are my losses?
    • What are my family incomes?
    • What are my monthly commitments?
    • What are my debts?
    • What is the position of my current investments and savings?
    • What is my protection coverage for my life and assets (takaful/insurance for personal and workplace)?

    These questions will help you paint a picture of your financial situation and will quickly bring up areas of concern (if any) which you can focus on as you look to recover.

    4. Salvaging assets from flood damage

    The next step is to consider your current assets. Firstly, assess damage to items within your household. Check if you have household insurance and if yes, whether it covers special perils or not.

    Assess damage to your vehicles, and be sure not to start them as the electronic system will short-circuit; get tow trucks to haul it to a workshop. Depending on the make of your car, the repair cost may range from RM4,000 to RM10,000.

    Other things to consider:

    • If you are working from home, is your laptop and handphone provided by your company? Do you need to report up or make a police report?
    • Are your important documents destroyed?
    • Do you need to replace NRIC/birth and marriage/divorce certificates at the Registration Department, driving licence and road tax at the Road Transport Department (JPJ), and school certificates from the respective schools?

    5. Stay safe and healthy

    In such trying times, keeping healthy may be the last thing on your mind but it is very important that you do your best to follow Covid-19 standard operating procedures (SOP) by getting help from NGOs and volunteers for masks and hand sanitisers.

    Be wary of water-borne diseases such as typhoid, cholera and dysentery and use water-purifying tablets if you are unsure if the water is safe for drinking or you do not have access to clean water. Follow the dilution instructions that comes with the tablets.

    6. Rebuild your financial status 

    The information in point (2) above is important to guide you on your next steps. You may seek help from:

    • Agensi Kauseling & Pengurusan Kredit
    • A licensed financial planner at SmartFinance.my where you can talk to an expert

    Be on the lookout for scammers; they are heartless and only want your money. Only accept help from reliable sources.  When in doubt, err on the side of caution!

    7. Preparing for a future flood

    The financial challenges you face today is the basis of your emergency fund for the future. Therefore, it is crucial to start building one when you can. Transfer some of the risks to your protection coverage and tap into your network of friends or relatives that you and your family can stay with.

    Flood-proof your home and/or prepare your evacuation SOP and equipment (torch lights, inflatable boats, dry food, bottled water, charged power banks, clothes, blankets and toiletries in waterproof bags, disposable wares and bags). Be constantly alert of your surroundings. Chances are, it may be difficult to sell your home and move to another so you may need to continue staying in your current place.

    Review how you place your furniture and appliances. Some homes put them on platforms that can be jacked up to desired heights (granted, if water level too high, it can render platforms useless). Store critical items in waterproof boxes when the rainy season approaches. It may also be prudent to check if you can convert your rooftop to an emergency accommodation equipped with the evacuation items listed above?

    My heart goes out to all flood victims.  We are fortunate there are volunteers and NGOs that we can contribute to, who will organise, mobilise and distribute contributions to as many victims as they can.  I hope the above is useful to those affected. May you have a respite from your situation and the strength to ride through this tough times.

    This article is contributed by Linnet Lee, CEO of the Financial Planning Association of Malaysia (FPAM).

  • Restoring Symmetry – What is Breast Reconstruction?

    Restoring Symmetry – What is Breast Reconstruction?

    Dr Rica Farah Muhammad Abdullah Ichihashi, a consultant plastic and reconstructive surgeon at ParkCity Medical Centre, debunks the misconception that breast reconstruction is cosmetic or aesthetic, and explains that it is actually a procedure to restore the original breast form and symmetry.

    For women in Malaysia, breast cancer is one of the most common forms of cancer that affect them. Treatment for breast cancer sometimes includes mastectomies where part or the entire breast is removed. After the procedure, women have the option of undergoing breast reconstruction.

    Speaking to Calibre, Dr Rica acknowledges that while breast cancer patients are a main group of people that undergo breast reconstruction, any woman whose breasts have been disfigured or mutilated in some way can benefit from reconstruction.

    Consultation & Methods

    Dr Rica explains that more often than not, surgeons treating breast cancer patients would advise and educate their patients on what kind of breast reconstruction procedure to do. “It’s not really something that the patient themselves can choose, because they wouldn’t know what would be best for the situation they are in.”

    Dr Rica Farah Muhammad Abdullah Ichihashi ParkCity Medical breast reconstruction
    Dr Rica Farah Muhammad Abdullah Ichihashi

    Mainly there are three methods—an implant reconstruction whereby a saline or silicone implant is inserted, an autologous or flap reconstruction that uses a patient’s transplanted tissue, or sometimes a combination of both. Because there is also an exhaustive variant of techniques that can be used, some of which aren’t Googleable. It is best for the surgeon to determine which method is best for the patient based on their assessment. An open and comfortable consultation between the surgeon & patient is important. The decision for breast reconstruction and the type would be a joint discussion between the plastic surgeon, the patient and in some situations her family and loved ones.

    For breast cancer patients, Dr Rica stresses the importance of a quick recovery so that the patient’s cancer can be treated, which is the priority. “The aim is for an uncomplicated, quick recovery so patients are ready for any other cancer treatment such as chemo or radiotherapy.”

    Timing & Recovery

    Much like the method, Dr Rica mentions that the timing of the procedure can also vary and is dependent on many factors. Apart from the surgeon’s skill set, other factors to take into consideration are the methods used and the number of surgeons working on the patient at any one time.

    “Sometimes the reconstructive surgeon is the same surgeon taking out the patient’s tumour, so that procedure would evidently take up more time. But sometimes, if two surgeons are working simultaneously, the procedure would be completed quicker. Timing is quite subjective.” On average however, Dr Rica says a typical breast reconstruction surgery can take between an hour and a half to three to four hours.

    “Post surgery, most patients don’t stay in the wards for more than a week. They would return after being discharged a week later for a follow up and to remove their stitches, and more often than not, they are fully recovered between a month to six weeks.”

    As breast reconstruction is a surgery that’s meant to restore symmetry of the breast, there isn’t much change or adapting for the patient post-surgery. They are able to wear the same bras and clothes as before and if needed, proceed to undergoing their breast cancer treatments.

    “Patients are usually also very concerned about pain, but seeing as everyone’s pain threshold is different, I would say it is subjective,” Dr Rica remarks. “Generally however, most patients are home within the week.”

    Considering the Risks

    Like other surgeries, breast reconstructions have similar risks but also some that are specific to this particular procedure. The risk of asymmetry is more common with implant reconstructions, and also carries an increased risk of the rare cancer, anaplastic large cell lymphoma (ALCL). “If a patient undergoes radiotherapy post-reconstruction, they could sometimes be subjected to slight impact on the skin from the radiotherapy,” Dr Rica says.

    With autologous reconstructions, some risks are blood clots, necrosis of the transplanted tissue and weakness, pain or sensitivity around the donor sites. The interruption of the blood flow also can impact the way the tissue recovers post-reconstruction. However, since the tissue is the patient’s own, Dr Rica mentions that recovery might sometimes be faster with autologous reconstructions, and it might also yield better results. Some risk also include interruption of the blood flow to the reconstructed tissues, pain or sensitivity around the donor site.

    Making an Informed Choice

    Breast reconstruction offers women an opportunity for better quality of life, which is pertinent after going through an ordeal such as a mastectomy. By offering women this sense of normalcy after the loss of a breast, the procedure is one that is both healing and empowering. With so many considerations and risks to assess, it is important that women make informed choices about the procedure they choose to undergo, and to also be comfortable with the surgeon they consult with in order to get the best possible care.

  • Takaful Malaysia Launches Nation’s First Flexi Motor Takaful Plan with Pay As You Drive Daily Cover

    Takaful Malaysia Launches Nation’s First Flexi Motor Takaful Plan with Pay As You Drive Daily Cover

    Syarikat Takaful Malaysia Am Berhad (“STMAB” or “Takaful Malaysia”), the general takaful arm of Syarikat Takaful Malaysia Keluarga Berhad virtually launched Takaful myClick Motor FlexiSaver, the nation’s first flexi motor takaful plan with Pay As You Drive daily cover. Jointly organized by Takaful Malaysia and technology partner, Fusionex, the virtual launch was officiated by Dato’ Mohammed Hussein, Chairman of Syarikat Takaful Malaysia Keluarga Berhad.

    “Virtual launch of Takaful myClick Motor FlexiSaver signifies Takaful Malaysia’s unwavering commitment to driving product innovation and delivering superior customer value. Flexible protection plans are the future of the insurance and takaful sector. Offering insurance and takaful products in the new mobility space that are simple, flexible, and usage-based is revolutionising the industry. This means, consumers have the option to decide and pay for just the coverage they need, as and when they need it. With more people driving less these days, while some may face financial challenges due to the impact of the COVID-19 pandemic, Takaful myClick Motor FlexiSaver is the best option that suits the financial and protection needs of those who drive infrequently or own several cars and want to save more on motor takaful or insurance plan. The Pay As You Drive daily cover available under this plan is ideal and rewarding, as we give customers the flexibility to activate it the day before they want to drive and will only be charged for the days they drive. Suffice to say, Takaful myClick Motor FlexiSaver is a quick win for customers to enjoy great savings and peace of mind when they drive,” stated Dato’ Mohammed Hussein, Chairman of Syarikat Takaful Malaysia Keluarga Berhad.

    Takaful myClick Motor FlexiSaver is an online motor takaful plan that provides one-year coverage for loss or damage to your vehicle due to fire or theft, as well as third party bodily injury, death, or property damage. Offered through Takaful Malaysia’s online sales portal and Click for Cover mobile application, this plan provides a 24-hour roadside assistance program for unlimited breakdown towing service and minor roadside repairs, including tyre change, fuel delivery, battery change, and jump start. Featuring Pay As You Drive daily cover for accidental damage to your own vehicle and complimentary personal accident coverage of RM15,000 for the driver and all passengers as well as accident towing, Takaful myClick Motor FlexiSaver also offers add-on protection options for windscreen, personal accident, and key replacement. Customers can also enjoy an instant 10% discount when applying the base plan of Takaful myClick Motor FlexiSaver, and when activating Pay As You Drive daily cover.

    Chief Executive Officer of Syarikat Takaful Malaysia Am Berhad, Mohamed Sabri Ramli said, “In our continued efforts to meet ever-changing consumer expectations, and in line with the rapid pace of digital expansion in consumer purchases, it is timely that we introduce Takaful myClick Motor FlexiSaver with Pay As You Drive (“PAYD”) daily cover to better serve our customers with innovative takaful solutions while preserving consumer choice. The PAYD is the key differentiator, a unique feature that sets us apart from other motor insurance and takaful plans available in the market. Customers only need to sign up for the base plan of Takaful myClick Motor FlexiSaver via our online sales portal or Click for Cover mobile app, before activating PAYD through the mobile app. Eventually, we want to make it easy and hassle-free for customers to enrol in this motor takaful plan online, corresponding to our digital strategy to enhance product and service accessibility.”

    “Takaful myClick Motor FlexiSaver with PAYD not only provides a simple online application process along with an array of benefits and services offered to customers but also diversifies Takaful Malaysia’s product offerings and creates a value proposition for consumers at large. Takaful Malaysia’s strategic move to introduce this motor takaful plan will provide new revenue and value-producing opportunities for the company to stay ahead of the curve and remain competitive in the motor insurance and takaful market,” added Mohamed Sabri Ramli.

    Dato’ Seri Ivan Teh, Group Chief Executive Officer of Fusionex said, “Insurance, at its core, is a business that underwrites risks and helps people in times of need. As such, I applaud Takaful Malaysia for revolutionizing their offerings and empowering their customers to take more control over how they purchase insurance. As a long-term and fully-supportive technology partner, Fusionex pledges to lend our experience, expertise and cutting-edge technology to drive excellent user experience for Takaful Malaysia’s customers, and this partnership continues to innovate with the launch of Malaysia’s first pay-as-you-drive motor insurance.”

    “Together with Fusionex, which specializes in analytics, big data, and artificial intelligence, we leverage digital and social media platforms to actively promote this product. Ultimately, we want to ensure that our business is competitive and relevant to the growing consumer demands, particularly the tech-savvy generation. By embracing technology and digital tools to offer differentiated product offerings and services, we will be able to reach new customer segments through superior protection products and customer experience,” said Mohamed Sabri Ramli in conclusion.

    Takaful Malaysia was recently voted once again by Malaysians as the Best Motor Takaful Company in Malaysia for 2021/2022. The annual award clinched by Takaful Malaysia is based on the results of the online survey conducted by iBanding, an independent, knowledge-based company that provides transparent insights about the local insurance and takaful industry that ranks insurance and takaful companies in Malaysia according to the actual feedback from survey responses among motor vehicle drivers.

  • Learning More about Kidney Cancer

    Learning More about Kidney Cancer

    Dr J.R Sathiyananthan, a Consultant Urologist at ParkCity Medical Centre, explains about kidney cancer and the measures that can be taken to minimise the risks of getting it.

    Kidney cancer is a disease in which malignant tumour is found in one  or both kidneys.

    Kidney cancers account for a small proportion of all cancers, and the insidious nature of it makes early detection difficult.

    In 2010, kidney cancer was reported to affect 1.9 in every 100,000 Malaysians, while 2020 data from World Health Organisation showing 2.1 per cent of all cancers in Malaysia to be kidney cancer.

    Types of kidney cancer

    “Kidney cancer is generally divided into two—primary and secondary kidney cancer.

    “Primary kidney cancer comprises renal cell carcinoma, which accounts for 90 per cent of all kidney cancers, and other rare cancers such as lymphoma or medullary and collecting duct cancers.

    Dr J.R. Sathiyananthan ParkCity Medical Centre kidney cancer
    Dr J.R. Sathiyananthan

    “Secondary kidney cancer originates from cancers in other organs such as breast and colon. This in turn spreads to distant organs such as liver, lungs, and the kidney. This is not considered kidney cancer per se.,” says Dr Sathiya.

    Although there are instances when kidney cancers are caught early, most are diagnosed at a more advanced stage. This is due to a variety of reasons, including the cancer being localised and growing without causing any pain or symptoms. Besides that, the nature of the kidneys lying deep within the body, small kidney tumours cannot be felt during a physical exam.

    “At times when we examine patients for kidney cancer, it may have progressed to be locally advanced. Patients may have come in with flank pain, blood in urine, and sometimes the cancer is large enough to be palpable. The definite test which can confirm this is a contrasted multiphase CT scan, an imaging tool that provides accurate diagnosis. Besides that, percutaneous biopsies are also used in some circumstances to confirm the diagnosis and exclude metastasis from other cancers, bilateral cancers affecting both kidneys, or possibly benign tumours,” explains Dr Sathiya.

    How the disease progresses

    Currently there are no recommended screening protocols for kidney cancer in people who are not at increased risk. As of now, no screening test has shown to lower the overall risk of dying from kidney cancer.

    Kidney cancer is known in some instances to grow aggressively and invade the surrounding bowel and solid organs, which is called local extension.

    Other methods of progression could be blood borne, and spread to the lungs, liver, pancreas, lymph nodes, and bone. This is referred to as metastasis. When metastasis occurs, the outcome is expected to be poor as patient may not benefit from surgery.

    The spread could occur anywhere between six months to years depending on the type of kidney cancer. Clinical data suggests that cancers larger than 3cm have higher tendency to spread compared to smaller ones. Nonetheless, the more common renal cell carcinoma has a slow progression rate compared to the rarer varieties, leading to the possibility of better outcome.

    Treatment options

    “Localised kidney cancer can be treated by surgery. This can be done by removing the entire kidney, also known as radical nephrectomy, or removing only the tumour, with multiple factors taken into consideration prior to this decision. For metastatic kidney cancer, there is evidence that removing the kidney may benefit the long-term systemic treatment, and it is still an evolving area. For those with advanced cancer where surgical options are not available, arterial embolisation to block blood supply to the tumour can treat some symptoms,” describes Dr Sathiya.

    Although radical nephrectomy has been the mainstay of treatment for kidney cancer, the last 20 years has seen partial nephrectomy being the treatment of choice for most patients. This can be performed by open surgery, keyhole (laparoscopic) surgery, or robotically with the Da Vinci robot. The newer treatments include cryoablation and radio-frequency ablation, which can be used for tumours smaller than 4cm. Larger tumours may require multiple treatments.

    “However, the evidence for the newer treatments is not strong and only supported by inferior clinical trials. Nevertheless, they are a viable option for weak patients who are unfit for surgeries or could be used in combination with surgery in familial kidney cancers where multiple tumours are found within the kidney,” Dr Sathiya elucidates.

    Since it’s difficult to catch kidney cancer early, what can people do?

    “The known risk factors associated with kidney cancer are smoking, obesity, and hypertension. If you can avoid those or keep them in check, you could reduce the chances of getting kidney cancer.

    “Those who are at risk, for instance known family history of kidney cancer, should be aware of the symptoms and perform regular screening by ultrasound, blood, and urine test as prescribed by your Urologist,” highlights Dr Sathiya.

  • How to Choose the Right Investment Vehicle for Yourself?

    How to Choose the Right Investment Vehicle for Yourself?

    “Soo Yee, I saw someone on Instagram saying that stock investment is better than unit trust investment. What is your view?”

    This is one of the questions that I get from my client on investment.

    Everyday, we are bombarded by a myriad of information on social media. It’s especially important to process the information, rather than consuming it blindly. How can you take up a piece of investment advice from someone who does not understand your financial situation as a whole? Does the mentioned investment vehicle suit your investment plan?

    Is stock investment really better than unit trust investment? It depends. Stock investment might be good for that person, but it is not necessarily good for you.

    When it comes to investment vehicles that suit you, there are many factors to consider. Here are some of the questions to ask to find your preferred investment vehicle.

    1. Risk level of the investment

    • Is the investment low, moderate or high risk?
    • Does it match your risk appetite?

    2. Capital needed to start investing

    • Does the investment require low or high capital?

    3. Investment lock in period

    • Is there a lock in period for your investment?
    • Is the investment easy to sell?

    4. Guaranteed element of the investment & its income tax implication

    • Is there a minimum guaranteed return for this investment?
    • How does this investment affect your income tax?

    5. Other considerations on the investment

    • Do you enjoy handling property management?
    • Do you enjoy spending time doing stock research & analysis?
    • Are you skilled in stock picking or do you prefer getting professional fund managers to manage your investment?

    There’s a multitude of investments available, so here are five of the more common investment types for your reference:

    How to Choose the Right Investment Vehicle

    If you’re a business person (without EPF contributions) and concerned about payable tax, some of the investments that can be considered are EPF and SSPN. Both EPF and SSPN will help to reduce your payable tax.

    If you’re a person who doesn’t have time or enjoy doing stock research & analysis, perhaps you can look into unit trust investment that leverages on professional management to invest your hard earned money.

    In short, a suitable investment vehicle for you should be tailored to your financial situation as a whole. If you’re clueless about your investment planning, you may consider investing in a licensed financial planner. A licensed financial planner will be able to look at your whole financial landscape and advise on the right investment vehicles to help you to reach your financial goals.

    About the author

    Kuah Soo Yee is a Licensed Financial Planner (CFP) who is passionate about helping people make sound financial decisions and achieve their financial goals, and recently launched her own app. Her personalised strategies and advice have helped many to gain better clarity and take firm control of their financial future. She can be contacted at soo.yee@ipp.com.my

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  • SC Launches Five Year Capital Market Masterplan to Support Malaysia’s Next Stage of Growth

    SC Launches Five Year Capital Market Masterplan to Support Malaysia’s Next Stage of Growth

    Capital Market Masterplan (CMP3) strives to build a capital market that is relevant, efficient and diversified to enable the Malaysian economy to emerge fitter and stronger.

    The Securities Commission Malaysia (SC) launched the third Capital Market Masterplan (CMP3), which will serve as a strategic framework for the growth of Malaysia’s capital market over the next five years. It seeks to leverage on the strengths and potential of the Malaysian capital market to accelerate economic growth that is sustainable and inclusive.

    The CMP3 was unveiled at a virtual ceremony officiated by Finance Minister YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.

    Speaking at the launch, the Finance Minister said, “The CMP3 fits well into the nation’s aspirations as one of the key enablers that will pave the way for a wider population to participate in the nation’s growth by enabling more inclusive and accessible investment products and distribution channels. With the CMP3 as a strategic guide for our capital market over the next five years, I am confident that it will continue to play an important role in the Malaysian economy.”

    Datuk Syed Zaid Albar, Chairman of the SC said, “Malaysia is now at a critical juncture in our post-pandemic journey. It is imperative for the capital market to continue to support the economy as we transition into an inclusive and sustainable nation. The progress in the capital market cannot be measured solely by growth and size, as it also has to serve the underlying needs and aspirations of the country and its people.”

    The CMP3 takes into consideration global megatrends that will shape the recovery and growth of global and Malaysian economies as it steers the capital market towards three desired outcomes:

    i. Relevant to the development of the economy and its stakeholders;

    ii. Efficient in capital mobilisation and in achieving the desired regulatory outcomes; and

    iii. Diversified to create value for all participants.

    To achieve these desired outcomes, the CMP3 outlines six key development and regulatory thrusts that will collectively serve as pillars in developing strategic initiatives over the next five years.

    The first development thrust is facilitating fundraising for competitive businesses through a diverse market and intermediation ecosystem. The CMP3 also aims to empower all Malaysians to invest for their future and promote digital inclusion and protection for vulnerable investors. Furthermore, through the Sustainable and Responsible Investments (SRI) and Islamic Capital Market (ICM) pillars, the CMP3 aims to shape a stakeholder economy by mobilising more capital towards sustainable businesses.

    In tandem, the SC’s regulatory approach will also evolve in response to changing trends and market landscape. The CMP3 strives to embed greater shared accountability within the capital market, particularly corporate responsibility to stakeholders beyond short-term profitability. It also aims to achieve a more efficient regulatory outcome and greater efficiency in investor protection through swift, effective and targeted enforcement and supervision approaches. In addition, as the industry becomes more digital, the CMP3 envisions greater use of technology – both RegTech and SupTech – for greater efficiency and deeper insights.

    “It will be our collective responsibility to bring these strategic thrusts and desired outcomes to fruition, for us to achieve meaningful change. This is a shared journey for all of us to undertake. We will be stronger together,” concluded Datuk Syed Zaid.

    Over the last two decades, the Capital Market Masterplan 1 (2001 – 2010) and Capital Market Masterplan 2 (2011 – 2020) have successfully expanded the capital market while ensuring market stability and integrity. Malaysia now has a well-diversified capital market, with an equity market that has over 900 listed companies, a bond market that is the third largest in Asia, an Islamic capital market that is innovative and well-regarded globally, a derivatives market that leads in crude palm oil price discovery and a unit trust industry that is one of the largest in the region.

    In addition, governance strategies implemented during the previous masterplans have ensured robust regulatory oversight to enhance confidence in the integrity of Malaysia’s capital market. The Malaysian capital market regulatory framework is benchmarked and ranks highly internationally with regards to, amongst others, investor protection standards, corporate governance and enforcement capabilities.

    The CMP3 will build on this solid foundation to pave the way for the next stage of Malaysia’s market evolution and growth.

    To learn more about the CMP3, please visit https://www.sc.com.my/cmp3

  • What Is Your Money Mindset?

    What Is Your Money Mindset?

    This is the first part of this six-part series, where these topics will guide those who have just started to work or have just started their journey to build a strong financial foundation. Before we set out to achieve anything, it always starts with our mindset. 

    How do you know what your money mindset is? It’s how you feel about and view money. It helps to form your decisions on how you manage money by saving or spending it. How you believe money can work for or with you, will decide how you live your life in the future. Every single day, you’ll make many small decisions that will push you forward financially or set you on a reverse course; it’s entirely up to you! 

    Some of the great money mindsets are listed below:

    • I have the ability to spend but I also empower myself to say “No”
    • Everyone has their own path and I have mine
    • Achieving financial goals are possible when I work towards them

    As Henry Ford said, “Whether you think you can, or think you can’t – you’re right.”

    Here are three ways to improve your money mindset:

    1. Money is a tool, not a goal

    Think of money as the fuel to your car. Is fuel considered the destination or is it one of the raw materials needed by your car to bring you to your destination? 

    If your answer is the latter, that’s correct! We exchange our time, energy and skills to earn money to buy us the things we need or want. Through your various life experiences, you may think that money is the answer to everything, but this isn’t true if you don’t know how you would like money to help you in life.  

    When you start seeing money as a tool, it’ll help you think about what your actual goal is. A simple goal could be living a life filled with fun and joy, where you enjoy travelling and eating – this will require money in order for you to fulfil this goal. 

    As you start setting goals for yourself to aim for, they also provide a purpose for your money to work on and naturally, you will start allocating your money to where it should belong. 

    2. Money needs to be managed

    Did you know that most winners of the lottery actually end up losing all the money they won and go bankrupt in a few years? This is hardly surprising because if a person doesn’t know how to manage RM1,000, then they will definitely not know how to manage RM10,000. The same logic also applies to you. If you work smart and hard to earn the money you have, why not take the initiative to learn how to manage, allocate and save your money? 

    You can set up a few accounts to save and segregate your money. For starters, these could be a savings account, fixed deposit and money market. Although these accounts may not serve as long-term wealth builders, you can use them to practice saving what you earn. When you continue practicing this, it then develops to become a habit. 

    Assume your total take home pay for the next five years of working is RM200,000. How much do you think you would like to keep from this amount? Would you like to save RM20,000 or RM40,000 or even more? What you want to save entirely depends on you. 

    3. Using money is like two sides of the same coin

    The “opportunity cost” or “trade-off” is defined as the loss of alternative choices when you make a decision on how to use your money. This is the same thing that happens if you flip a coin – it either lands on heads or the tails, and never on both sides.

    For example, let’s say you decide to save RM10,000 every year from your take home income of RM50,000. By saving this RM10,000, you gain additional money in your savings account. However, you may miss out on having more fun by travelling, purchasing new gadgets, or buying new furniture that you might want to have. 

    Before making any decisions regarding money, learn to think about the potential opportunity cost or trade-off that you have to make. Will it be something you’re willing to miss out on? Would the trade-off matter in the years to come? Would your decision help to build the life that you want in the future? 

    If the decision isn’t urgent and involves an amount of money that’s a lot to you, and you’re not comfortable making it, then don’t. There is no harm in pausing and thinking through or seeking opinions from the financial planners that you know. For all you know, you may have just saved yourself from future troubles if the initial decision goes against you. 

    Finally, improving your mindset isn’t a “been there, done that” type of destination. It’s a continuous effort to enhance and practice, just like how we build our body muscle, otherwise our body muscle will slowly turn into…body fat. 

    Stay tuned for my next topic in this series!

    About the author 

    Fong Woon Bing is a licensed financial planner who has coached, improved and broadened the mindsets of many people whom he works with, bringing them closer towards achieving their life and financial goals. He can be contacted at fongwoonbing@vka.com.my

  • Preventing Cardiac Catastrophe

    Preventing Cardiac Catastrophe

    Dr Chong Yoon Sin, a Consultant Cardiologist at ParkCity Medical Centre highlights the effects of heart disease and the importance of its prevention.

    Heart disease has long been acknowledged as a silent killer in Malaysia, affecting a large number of the population each year. According to the Department of Statistics Malaysia, heart disease is the main cause of death among Malaysians and has remained so for the past fifteen years. In 2019, 16,325 victims of heart attack made up 15 per cent of medically certified deaths. Furthermore, the onset age for heart disease has also alarmingly lowered in recent years, with the disease being the leading cause of death for people aged between 15 and 64 years old.

    Although there are many ways in recent years to catch heart disease quickly and ample treatment options available for patients, the adage “prevention is better than cure” holds true for the disease.

    Understanding Heart Disease

    Ischemic heart disease, also called coronary heart disease (CHD) or coronary artery disease (CAD), is the term given to heart problems caused by narrowed coronary arteries that supply blood to the heart muscle. A heart attack, or myocardial infarction, occurs when the blood supply to part of the heart muscle is severely reduced or stopped. This occurs when one of the coronary arteries is blocked by an obstruction, such as a blood clot that has formed on plaque due to atherosclerosis.

    Dr Chong Yoon Sin
    Dr Chong Yoon Sin

    When the blood supply is cut off drastically or for a long time, the heart’s muscle cells suffer irreversible injury and die, causing disability or death to the patient depending on how much of the heart muscle is damaged.

    “Sometimes, a coronary artery also temporarily contracts and goes into spasm, causing it to narrow and decrease or stop the blood flow to part of the heart muscle. The spasm can occur in blood vessels blocked by atherosclerosis or regular blood vessel, and when severe causes heart attack,” says Dr Chong.

    Effects of Heart Disease

    It is important to know the warning signs of a heart attack: chest pain, breathing difficulty, profuse sweating, giddiness, epigastric pain, and loss of consciousness. If you notice yourself or someone around you experience these symptoms, it is important to immediately rush to the hospital for treatment.

    “Upon treatment, recovering after a cardiac arrest is a process that requires patients to be committed to avoid a repeat of the incident. Most of the time, after a heart attack, there will be some degree of muscle damage. If the damage sustained by the heart is small, patients will be able to return to an almost normal life except for a stricter diet and medication. However, if the damage is significant, the heart will be weak, causing patients unable to exert themselves as much as they were able to before. Other effects even include breathlessness and inability to drink a lot of water immediately,” explains Dr Chong.

    Preventing Heart Disease

    In Malaysia, heart disease is proven to be caused by the sedentary lifestyle led by a large portion of the population. In addition, Malaysians are also prone to various heart disease risk factors, such as smoking, obesity, hypertension, diabetes, and high cholesterol.

    Many scientific studies show that certain characteristics increase the risk of coronary heart disease, with the four major modifiable risk factors being smoking, high blood cholesterol, high blood pressure and physical inactivity. It is crucial that people control their modifiable risk factors to keep heart disease at bay. Furthermore, if you experience chest pain continuously even if you practise a healthy lifestyle, it is vital that you pay a visit to the doctor.

    “Nowadays we’re seeing patients in their 30s with heart disease due to their lifestyle practices. That’s why I always emphasise on the importance of early detection by going for screenings especially if you have lifestyle or genetic risk factors. It is also important to lead a healthy lifestyle by always exercising at least 30 minutes every day, not smoking, practising a healthier diet by eating more vegetables, fruits, lean meat, fish, beans and so on. Also, cut down on high-fat food, always stay hydrated, and manage your stress better. Once you practise a healthy lifestyle and go for screenings consistently, you will be fine,” assures Dr Chong.

  • AI : Automating Investing For A Better Future

    AI : Automating Investing For A Better Future

    Would you trust artificial intelligence to invest your hard-earned cash for you?

    Robo-advisors are fast gaining popularity in Malaysia, and while the concept of digital wealth management platforms have been around since 2008, it has taken much longer for such services to reach our shores.

    StashAway was the first robo-advisor to enter Malaysia in 2018, a year after it first launched in Singapore. Today, there are seven robo-advisors or digital investment managers (DIM) recognised by the Securities Commission Malaysia, suggesting that the industry is beginning to mature and grow exponentially. So what fuelled this sudden growth and how does it bode for the future of retail investors?

    A Time-Saving Option For Investors

    Contrary to a lot of investment products which tend to champion the rate of return, one of the main selling points of robo-advisors is the time that can be saved by using their services. The typical image of a full-time investor can often be one of multiple screens set up in a room, with hours spent analysing graphs and charts. In short, it is essentially a full-time job, especially for the most successful investors.

    “To build a case for investing, an individual would need time to learn the in’s and out’s of investing, which can be overwhelming for certain individuals,” says Wong Wai Ken, country manager, Malaysia of StashAway.

    “Robo-advisors offer individuals an alternative to this, as they are able to offer guidance to picking the right portfolio whilst charging much lower fees compared to traditional unit trusts. It is also a convenient manner to invest, as it gives investors a platform to get exposure to global markets.”

    With such convenience at investors’ fingertips, it appeals greatly to individuals that are keen to save time and have disposable income that they can invest, a notion that is backed by the demographics.

    “Our main demographic are white collar professionals in the financial services, tech, consulting, and oil and gas sectors,” shares Wong.

    “64% of our customers are the main financial decision-makers of their household, while 43% are male and 57% are female. The range of our demographic varies however, as StashAway is built for those focused on building long-term wealth.”

    And while a time-saving investment product may be thought of as appealing to the younger generation who are more tech savvy, it seems that seasoned working professionals are also coming round to the idea of alternative investments and are willing to explore. The time they save by leaving investing to algorithms can then be utilised elsewhere, be it into their careers, families or personal goals.

    Emotion-Free Investing

    One of the key tenets of robo-advisors is that it is not swayed by emotion, unlike humans who are often influenced by market movements in either direction. Regardless of market sentiment, the AI simple executes buy and sell orders as determined by its risk algorithms, which can provide peace of mind for more passive investors.

    [ You may read the full article HERE ]

     

  • Mental Health and Well-being

    Mental Health and Well-being

    The links between mental health and physical health are very deeply intertwined, and there are significant overlaps between these chronic conditions.

    Smart Investor sat with Azran Osman-Rani. ” As an entrepreneur, CEO and Ironman triathlete, many only see my public persona of strength, resilience and energetic enthusiasm to embrace life’s challenges and opportunities. Hardly anyone knows about the recurring anxiety attacks and chronic stress that can leave me either bed-ridden or feeling disengaged and withdrawn.”

    Many do not understand that mental health is just like physical health. Some days we feel physically strong, and other days we become sick – either from an infection that may heal in a few days, or when we are struck with a lifelong or life-threatening disease.

    This can either be from a genetic or inherited condition, or even from being unhealthy from our own lifestyle choices like getting diabetes or hypertension because of poor diet, lack of exercise, smoking and stress.

    Mental health also exists on a spectrum. There’s positive mental wellbeing – when someone is optimistic and curious, focused and resilient, and socially connected. On the other hand, feeling depressed, anxious and stressed is completely normal.

    Most of us can self-regulate and feel better after a few days, but others suffer from clinical levels of depression and anxiety because the triggers that lead to these feelings are either prolonged or so intense that the body can no longer return to normal. It is similar to diabetes where consuming a lot of sugar can cause our blood glucose to spike. If it is only occasionally, for example, having a slice of chocolate cake, the body’s insulin hormones normalise blood glucose.

    However, prolonged and excessive sugar consumption impairs the ability of insulin hormones to regulate glucose and that leads to diabetes. Over time as diabetes progresses, it can cause kidney failure, blindness and even death. Similarly, other hormones control our mental and emotional state, like serotonin and oxytocin. Prolonged stress and pressure, or even intense trauma, can interfere with the functioning of these hormones, causing clinical disorders.

    Other mental health conditions can be brought about by genetic and biological factors, leading to illnesses like psychosis, schizophrenia or bipolar disorders, just like auto-immune diseases or cancer which affect our physical heath.

    The links between mental and physical health are very deeply intertwined, and there are significant overlaps between these chronic conditions. This can be seen, for example, in the relationship between diabetes and depression, or anxiety and heart diseases.

    [ You may read the full article HERE or click below to subscribe our digital copy ]

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