Life For IJM & Bank Rakyat

 Bank Rakyat, in collaboration with the National Heart Institute (IJN), has introduced the Personal Financing-i loan scheme to help those unable to pay for heart disease treatment.

Bank Rakyat president Datuk Mustafha Abd Razak said the venture between the two would assist heart patients and family members who need money for treatment.

This financial product was prompted by the need of many heart patients and their family members who face difficulties in raising a substantial amount of money within a short time. It has a simple application process, by which we accept the estimated medical cost issued by IJN, with no guarantor required. The payment will be channeled directly to IJN, with approval issued within 24-hours

Bank Rakyat will open a branch in IJN to assist the patients.

Medical Insurance

As the cost of living goes up every year, Malaysians are finding it a challenge to meet their expenses.

Healthcare, considered to be one of the most important need, has been on an upward trend and more consumers are seeing the need for adequate medical coverage.

In terms of expenditure, the medical inflation rate in Malaysia averages at about 12% a year.

The World Health Organisation has reported that in 2014, non-communicable diseases (NCDs) – brought on by the modern lifestyle such as obesity, diabetes and high blood pressure  – are estimated to account for 73% of total deaths.

However, with the myriad of plans in the market, one may also well be confused with the amount of information available.

Adequacy of protection

A good medical plan will provide adequate protection for all your medical expenses hence you will need to determine how much coverage you require or the maximum amount you can claim known as the lifetime limit.

For most of the medical plans available in the market, insurers only pay claims up to a limit. Once the ‘ceiling’ is hit, the coverage runs out and the medical cover terminates, leaving the customers on their own.

It is important to note that what seems sufficient today may not be sufficient for the future. For example, treatment for lung cancer which includes doctor fees, treatment costs like chemotherapy etc. cost RM40,000 10 years ago.

With medical inflation averaging 12% a year, the same treatment costs RM100,000 today and in another 10 years will have increased to RM300,000.

Value for money

Does the medical plan consider the fact that you probably would not be admitted to hospital every year? Statistics have shown that only 7 in 100 Malaysians were hospitalised in 20112.

As hospitalisation does not happen often, it makes sense to only pay for what you really need and get the best value out of your medical plan. There are some medical plans in the market which allow you to pay a lower premium if you choose to share a certain amount of the medical bills incurred with the insurance company.

With the premium you have saved, you may choose to enhance your medical coverage or reinvest it back to your insurance policy to increase your savings or investment portion.

In the event of a hospitalisation, the premium savings you have accumulated over the years would far exceed the amount you would have to pay on the medical bill. You will be getting more value from your policy as you get to enjoy more benefits and protection with added savings.

Certainty of coverage

Does the medical plan provide certainty of coverage? Many medical plans may include a clause that provides them the right to discontinue the medical coverage if they give sufficient notice.

Thus, the customer may be left without any medical protection when they are most in need of medical attention.

Look for a medical plan that has a non-cancellable clause to ensure peace of mind that your coverage will be there when you need it.

United Life At Johor

Sultan Ibrahim Sultan Iskandar of Johor today said Muslims can celebrate festivals with their friends and neighbours of other faiths as a sign of respect.

"This is what Bangsa Johor is about. It promotes closeness, tolerance and mutual respect for each other regardless of race and religion. We should celebrate this in peace and harmony," he said at a Deepavali gathering.


The Johor ruler said the event he attended should similarly be organised for other holidays such as Hari Raya, Chinese New Year and Christmas. "Such events are meaningful as it helps to improve relations between me and my people," he added.


At the event, Sultan Ibrahim warned those who spread disunity to stay away from Johor, saying the state did not welcome such people. He also reminded Indian Malaysians not to be polarised by differing political ideologies.


"The people need to think which way they want to go and what they want to achieve," he said.

Malaysian Insufficient Savings For Retirement

Younger workers need to save more to ensure that they have enough savings for retirement, ideally accumulating 12 to 14 times their last annual salary, Allianz Asset Management AG said.

This is crucial as the Malaysian retirement pension scheme does not provide an adequate retirement income, its Head of International Pensions, Brigitte Miksa said.

“Workers close to retirement age today will have exhausted their assets in the first five years of their retirement.”

“Hence – establishing a planned spending phase with annuitisation as a key element is one way to protect individuals against longevity risk (the risk of outliving your assets),” she told a press conference following a briefing on ‘Retirement Readiness in Malaysia and Reforms Needed’ today.

Citing the Allianz Retirement Income Adequacy indicator, Miksa said the retirement income provided by Malaysia’s pension scheme is one of the least adequate among 49 countries.

She said one of the most effective measures to improve adequacy is extending working lives – as it
reduces the risk of outliving accumulated assets and extending the saving process.


“The Employees Provident Fund – being one of them – but every individual needs to take their own ownership in terms of having a separate private retirement scheme account, or life or health insurance related products. The assets built up until the retirement age of 55 is insufficient as workers are living longer due to rising life expectancy.

Bank Negara New Applications

Bank Negara Malaysia (BNM) has introduced three new mobile applications to help financial consumers make informed decisions.

In a statement Thursday, BNM said the applications will provide them with the latest developments and updates on financial matters, including tools to plan, manage their finances and exercise rights.

The applications, namely MyBNM, BNM MyLINK and MyTabung are also aimed at equipping wider segments of the population with the necessary knowledge, skills and tools to make smart and prudent financial decisions by leveraging on advancements in technology.

“MyBNM is the official BNM mobile application that allows consumers to keep abreast of the latest financial news, including notices and announcements, speeches and interviews, press releases, financial fraud alerts and foreign exchange rates at their fingertips,” BNM said.


BNM MyLINK provides a direct interface between consumers and financial providers in Malaysia, such as Islamic banking, insurance, takaful companies as well as SME institutions.


Meanwhile, MyTabung is for individuals to create a personal or household budget and obtain financial advice, budgeting tips and guidance on practicing prudent financial management as a way of life.


The mobile applications, available in both Bahasa Malaysia and English, can be downloaded for free from the Apple App and Google Play Stores.

Why We Need A Life

Buying life insurance is one of the most important financial decisions, but believe it or not, only 54 per cent of the Malaysian population is insured. But why is it so important?

Well, regardless of how much you earn, no one knows what the future holds. Lots of people die a premature death every year from illness or accident and, if you happen to be the sole breadwinner in the family and you were to pass away, it could have devastating consequences on your loved ones - their ability to pay household expenses, pay off debts and maintain their standard of living.

The least you can do, therefore, is to secure your family's financial future by buying life insurance policy. Besides, do not overlook the benefits of a life insurance during your lifetime, especially if you are young. Here, we list 10 compelling reasons for buying a life insurance policy.

1. Looking after your loved ones even after you're gone. This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you're gone and you certainly don't want to let them down. Whether it's for replacing lost income, paying for your child's education or making sure your spouse get the much-needed financial security, life insurance could save the day for your surviving dependants.

2. Dealing with debt. You don't want your family to deal with financial liabilities during a crisis. Any outstanding debt - a home loan, auto loan, personal loan, or a loan on credit cards - will be taken care of if you happen to buy the right life insurance policy.

3. Helps achieve long-term goals. Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals, such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies. Some policies are tied to certain investment products that pay dividends based on their performance. If you are opting for an investment-linked policy, be sure to read the fine print to be fully aware of the potential risks and returns.


4. Life insurance supplements your retirement goals. Who wouldn't like their retirement savings to last until they do? With a life insurance plan, you can ensure you have a regular stream of income, every month. Putting money in an annuity is like a pension plan - put in some money regularly in a life insurance product and enjoy a steady income every month, even after retirement.

5. Buying insurance is cheaper when you're younger. Not every millennial needs a life insurance policy. If you haven't created an emergency fund or you're still living off your parents' money, insurance shouldn't be a priority. However, if you do have dependants or you have co-signed a loan with your parents (or any other member of your family or friend), whether it be a student loan or a home loan, you need to start considering buying a life insurance policy. Besides, coverage costs are much lower when you're single. Insurance agents may try to sell you a policy that you might not need.

6. Your business is also taken care of. Life insurance isn't only for yourself and your family. Some insurance policies also take care of your business. If you own a business, then your business partner can purchase your portion of the business without hassle. Your business partner(s) will enter a buy-sell agreement and the payout would go to the deceased partner's nominees, but without giving them a stake in the company.

7. Tax-saving purposes. You could save taxes with insurance policies, irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for tax benefit per annum (RM6,000, RM3,000Medical, RM3,000 Education Policy, RM3,000 annuity & RM3,000 private retirement fund)


8. A tool for forced savings. If you choose a traditional or unit-liked policy, you pay a premium each month, which is higher than what it costs to insure you. This bit of extra money is invested and it accrues cash value. This cash can then be borrowed against the policy or you can choose to sell it or draw income from it.


9. You may not be qualified for it later. Life insurance policies run on uncertainties. You may be healthy now and paying a premium for life insurance may seem to be an added financial burden, but if you suddenly fall ill, you may not be allowed to but a life insurance policy. Therefore, it is imperative to buy one early on in your life because it remains in force if your health deteriorates later on. Insurance companies allow you to attach certain 'riders' or benefits to your existing or new policy.
These riders enhance the quality of your insurance. The accelerated death benefit rider, for instance, allows the policy owner to avail all or a part of the policy's death benefit if he or she has less time to live due to a critical illness, or wants to use the money for medical treatment or related expenses.

10. Peace of mind. Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you've done all you can to help them tide over difficult times. Life insurance is a great tool for both protection as well as helping a consumer save in a disciplined manner which leads to creation of a good corpus. The need for life insurance changes at different stages of your lifecycle depending on the financial obligations and dependencies.

Insurance plans provides us with much more than just preparing us for an unfortunate event. They are good investment options. But the most important thing to do is to get advice on a policy that would serve your requirements best.


For instance, if a 70-year-old with no immediate liabilities buys a unit-linked policy it would certainly not be wise. An insurance agent must know your spending habits, your needs, plans and future responsibilities thoroughly before suggesting the right policy. Also, be sure to ask the various riders you can avail of on your life insurance policy.

Malaysian - Poor Financial Planning

In its Financial Capability and Inclusion Study 2015, Bank Negara Malaysia (BNM) found the majority of the over 3,000 Malaysians surveyed do not have a proper budget plan or practise financial discipline to manage their spending and debt.

Malaysia’s central bank revealed today a mere 6 per cent of salaried Malaysians are able to sustain themselves for more than six months if they lose their jobs, the main source of their income.


The survey also found that only 51 per cent of the respondents have a “rainy day” fund, while 76 per cent admitted to having difficulty to raise RM1,000 in emergency cash if needed.


Malaysians tend to focus on short-sighted gratification. Debt levels are especially acute for Malaysians in the bottom-40 per cent category, averaging at 14 times their annual income. A whopping 93 per cent of the survey respondents earn a monthly wage of RM3,000 or less individually while 93 per cent of the households earn RM5,000 or lower.


About 19 per cent of the respondents also said they felt they have too much debt, and only 26 per cent said they make full settlements of their credit card debts at the end of the month.


Young adults are especially ill-prepared to manage their own finances, with many youths who have just joined the workforce saddled with heavy debts. Malaysians who urgently need help with financial management are those with an annual income of RM48,000 or less and living in either the Klang Valley, Johor or Penang, aged between 25 and 45 years, married with dependents and of Malay descent.


For Malaysians living outside the three industrialised states, income range for those in urgent need of help goes down to RM36,000 or lower per annum.

Scissors Salad At Malaysian Parliament

A dinner menu for Malaysian Parliament staff has sparked great interest & curiousity.


The meme was inspired by a dinner for Parliament staff yesterday where its menu listed "Caesar Salad" as "Scissors Salad".


Popular franchise Pizza Hut, which has caesar salad on its menu, jumped onto the bandwagon.
"We don't have 'scissors salad' but we do have Caesar Salad.

Who Is Akmal Nasir

At just 29 years old, with no honorifics to his name or Dewan Rakyat seat to warm, Akmal Nasir found himself taking on a senior Federal minister - Datuk Seri Jamil Khir Baharom - when he unleashed a series of exposes on Yayasan Pembangunan Ekonomi Islam (Yapeim), a government charity recently. His exposes on Yapeim led to two senior officials being ordered to go on leave pending investigations into the charity organisation. Local television station TV3 identified the two as Yapeim chairman Datuk Abdul Malek Awang Kechil and deputy chairman Datuk Siti Zaleha Hussin

Etiqa Insurance Bhd

Malayan Banking Bhd (Maybank) conventional insurance arm Etiqa Insurance Bhd is aiming to grow its revenue by 10% next year and anticipates a big portion of that growth to be driven by its life insurance business.

In an interview with The Edge Financial Daily, Etiqa Insurance chief executive officer Zaharudin Daud expects both life and general insurance segments to register single-digit revenue growth in 2016.


“We are looking at growth of about 10% growth in top line in 2016. The bigger portion of the growth is expected to be contributed by our life business. Life insurance is expected to grow by about 5%, while the general insurance business is expected to grow between 6% and 8% in revenue next year,” he said.


Currently, general insurance contributes to 52% of its revenue, while life insurance contributes the balance 48%, said Zaharudin.
For the life insurance segment, he said Etiqa Insurance will be focusing more on regular premium insurance, which provides better new business margin, to improve its profits.


“When it comes to life insurance, there are two main types of premiums — the single and the regular premium. We are fairly sizeable in our single premium, but in terms of margins and sustainability, it is not as healthy as the regular premium.”


For general insurance, he said the company aims to increase its net retention premium and will also concentrate on well-spread, but smaller, risk insurance, such as personal accident (PA) insurance.
He explained that for PA, the issuances are very small, thus removing the need for reinsurance; he also noted that the loss ratio for the product is very good.


He added that this strategy will leverage on its bancassurance model with Maybank.


“The key is in how we are delivering the product. We are fortunate as we are a part of the Maybank group. We have our kiosks located at close to 450 Maybank outlets nationwide.


“Imagine over 400 branches selling at least three PA products a day. At an average premium of RM300 to RM400 [per day/per product/per week], we can easily get over RM6 million per month.


The loss ratio for PA is also very good, [the] maximum is at around 25%,” he said, adding that Etiqa Insurance aims to take the lead in the PA market.


However, in the company’s latest unaudited results for the six months ended June 30, 2015, Etiqa Insurance saw its net profit fall 32% to RM121.28 million from RM179.61 million in the same period last year, as revenue fell 6% to RM1.68 billion from RM1.78 billion.


Zaharudin said Etiqa Insurance faces a tough operating environment in 2015, along with the rest of the Malaysian insurance industry.


“I think everybody is quite familiar with the current economic situation. The investment market is not doing very well, so it has an impact on our business. Etiqa Insurance is not the only one affected,” he said.


Domestically, he said people have been more cautious since the implementation of the goods and services tax (GST) in April.


“With the unfavourable market and GST coming into play in the same year, people are a bit cautious and very selective in their insurance purchases,” he said, adding that Etiqa Insurance is expecting lower investment returns in 2015.


Meanwhile, the group will continue investing in its online insurance business, which has grown exponentially, reporting sales of RM73 million in 2014, compared with RM16.2 million in 2010, added Zaharudin.

Distribute Life Through Mobile Phone

In the year since it was first introduced in Cambodia, mobile-delivered insurance has proven to be one of the fastest-growing segments of the Kingdom’s insurance industry, providing affordable coverage to people who might not otherwise have access to insurance.

Telecom operator Smart Axiata has been at the forefront of the innovative model, offering its 7.5 million subscribers the option of purchasing insurance policies underwritten by BIMA and Forte by dialling a short code on their mobile phone. Premiums start at as little as $0.60 per month, and payments are deducted automatically from the subscriber’s mobile credit on a daily basis.


Smart’s partnership with BIMA, the Cambodian arm of Swedish microinsurance provider Milvik, began in October 2014. Since then, more than 430,000 people have registered for Smart Life Insurance, a mobile-delivered product underwritten by BIMA, and the number is growing by 60,000 a month.


Smart Life Insurance now accounts for about 40 to 50 per cent of total individual life insurance policies in Cambodia. The impressive growth has created an unusual scenario where a telecom has risen to become the country’s top life insurance policy provider.


“Smart is – by the number of insured persons – the biggest life insurer in Cambodia,” Smart chief executive Thomas Hundt claims confidently.


And while the individual premiums of the microinsurance policies delivered to subscribers are quite low, the volume adds up to a hefty total premium.


“Having [hundreds of thousands] of life-insured individuals paying a monthly insurance premium of up to $1.60 [means that] Smart’s insured subscribers are significant contributors to the insurance premium volume,” Hundt said.


The deeper penetration of the insurance market lies in the increased accessibility and ease to register, particularly in rural areas, where insurers do not have offices.


According to a study released this week, Mobile Phones and Internet in Cambodia 2015, over 94 per cent of Cambodians own at least one mobile phone and nearly 40 per cent own a smartphone.


Jenny Huynh, assistant vice president of marketing and communication at Forte Insurance, said the company has seen strong growth of policy sales of its personal accident insurance since partnering with Smart in July 2014 to deliver the product via mobile phone.

Personal accident insurance is now the company’s top-growing product by total new policyholders, and it has also seen significant growth in gross premiums.

“Our partnership with Smart contributes a lot to the growth of individual policyholders, because people now understand more about the risks and benefits of having an insurance policy, as they want to take care of themselves and their family,” she said.


Yet not everyone is convinced mobile-delivered insurance is a good idea. Some argue that, while the model makes insurance more accessible to people, consumers should receive a face-to-face consultation with an independent insurance agent able to help them understand the complexities of coverage and differences between varying policies before making a purchase.


San Chey, founder and director of the Khmer Institute of National Development, said the consultations and a written contract would solidify the legality of the insurance contract and help uniformed consumers avoid potential difficulties they might face when submitting claims on mobile-delivered policies.


“When consumers need compensation, they may face issues because of the very poor legality [of the contract] between the individual and the company,” he said. “If applicable, [new policyholders] should register officially offline first, with acknowledgement by the mobile phone company.”


Chey also argued that deducting money from people’s phone credit to pay for the insurance could create confusion over billing.


“No one can control the balance on their mobile phone all of the time, and people may feel upset when there is any irregular deduction,” he said.


But while running out of credit is a constant issue for most pre-paid mobile phone subscribers, Smart has added measures to ensure that insurance coverage is not terminated unexpectedly.


According to its website, BIMA policyholders are given three months to cover their premium payments, while Forte policyholders have 21 days to top up before their coverage is terminated.
To date, BIMA and Forte are the only insurance companies offering mobile-delivered insurance products.


Another insurer, Manulife, has adopted mobile technology as a platform for its insurance products, though not for the sale of policies.


Manulife partnered with electronic payment system Wing last year to allow its policyholders to pay their life insurance premiums using their mobile phone.