AXA AFFIN Life In Kota Kinabalu

The outlook for the financial services industry, particularly in the insurance sector, is positive as Malaysia's increasing population and rising disposable income will result in more people requiring financial services.

Sabah Deputy Chief Minister, Dr Yee Moh Chai, said this was evident from last year's finance and insurance sector growth rate of 5.9 per cent, which was higher than the national gross domestic product of 5.1 per cent. Yee, who is also State Minister of Human Resource Development and Information Technology, said this was due to the strong performance in bank lending and the increase in premiums in the insurance sector.
"There is no doubt that this sector is steadily growing and hopefully would increase the penetration rate especially in the general insurance sector," he said at the opening of AXA Affin Life Insurance Bhd's branch here today.  He said while competition was tough, relatively low penetration has created plenty of space for growth as the state's economy entered a vital phase of development.

"With the thriving property segment and development in major areas in Sabah, the property and land insurance are set to grow significantly in the next few years. "The recently-announced foreign workers' insurance being enforced in Sabah would further stimulate the growth in the medical segment," he said.

Earlier, chief executive officer of AXA Affin Life Insurance, Loke Kah Meng, said currently the company has over 1,400 agents nationwide. "The company will continue to further grow the force to 2,600 agents by next year to better serve the customers," he said.

Stop Speeding Or Get Summon

Well, forget the need for speed, because the days of carefree bombing down the tarmac are soon to be over. The upcoming Automated Enforcement System (AES) might be up and running by late August, according to reports, and there’s no escaping this one.

The system, utilising around 800 fixed and 500 portable speedtrap cameras from two different manufacturers, is set to ‘monitor’ traffic in 831 “black spot” areas on highways in addition to stretches of state and federal roads. These locations have been identified by the Malaysian Institute of Road Safety Research (Miros) as having the highest number of fatal accidents.

Around 200 of the fixed speedtrap cameras are to be located at traffic light junctions, some of these in housing areas. From a portable speedtrap camera point of view, the relevant radar-based units from both manufacturers are supposedly able to detect vehicles anywhere across a four-lane carriageway up to 250 km/h (one of the systems claims 300 km/h).

All the cameras – which have a 11MP resolution – will be able to record both still image and video footage of vehicles committing speed-related offences, and are connected via a broadband link to the respective system’s headquarters. Once captured, the photographic evidence is then passed on to the JPJ, which will verify it, and a fine is then issued to traffic offenders. As for calibration, word has it that SIRIM will recalibrate the cams every eight months.

The utilisation of two separate systems means that there are two distinct contractors, in this case Beta Tegap – which will run gear from Australian-based Redflex Traffic Systems – and ATES, which will operate equipment from German company Jenoptik Robot. Beta Tegap will run the AES for the southern region, while ATES will be responsible for the rest of the country, including Sabah and Sarawak.

According to another report, the cost of installing and operating the cameras will be borne by the two companies, with an estimated RM300 to RM400 million being bandied to get the AES going. Both companies will be entitled to a share of the revenue collected from the fines to offset operational costs and generate returns, with revenue sharing done across a three-tier model.

First, both operators will get RM16 from each valid summons in which the fine is collected, not on how many photographs are snapped (!), capped at five million summonses. Go past that number, and the second tier sees the companies taking 50% of the amount paid in fines. The cap changes to an amount, set at RM270 million a year, with the government taking an equal share.

If you all persist on being generous, and take things past the RM270 million a year mark, the third tier will see both companies raking in 7.5% of the balance revenue. Of course, both companies will only get their money if offenders pay up, the report adds.

While the implementation of the AES is a positive (promoting safety always is), the question does beg as to whether police speedtrap exercises continue as is; there’s really no need to even ask why there are two separate systems in the first place, now that it’s all done and dusted. As always with topics close to us all, your comments on the matter are most welcome.

Private Retirement Scheme

Prime Minister Najib Tun Razak launched the establishment of private retirement schemes, a highly significant move as it provides employees and the self-employed with an additional avenue to save for their retirement.

The first set of schemes comprising 24 funds by several private retirement scheme providers was approved by the Securities Commission and will be available for offer to the public from September onwards.

A private retirement scheme (PRS) is a voluntary retirement savings scheme structured by private sector fund providers which are licensed and approved by the Securities Commission. "PRS offers opportunities for the rakyat. In the case of the individual, the PRS can provide an environment for individuals to build retirement funds for career mobility, while for employers, PRS may be utilised as a tool for retaining and attracting talent.

Tax measures in the Federal Budget last year have already been announced. This includes personal tax relief of up to RM3,000 for contributions by individuals to PRS approved by the Securities Commission and tax deductions to employers for contributions above the statutory rate of up to 19 per cent of employees' remuneration.

He said in addition to the mandatory EPF scheme and various public sector pension schemes, the government has also pursued other related initiatives, including the proposal to increase the retirement age to 60, which are needed to reflect the realities of people living longer

Detox Outstanding Loan

Keeping fighting fit requires a little extra work in your 30s. Similarly, so does enhancing your financial fitness. As the carefree 20s pass them by, the 30-somethings will have to start addressing the financial demands of the years ahead. The 30s are crucial years that build the necessary foundation for the marathon that is retirement planning. And, as they say, well begun is half done. Here is a simple warm-up checklist before you begin your financial fitness regime:

Detox outstanding debt
A first step to building up your savings for your 30s is to get rid of existing debt. Where possible, pay off any student loans, credit lines or outstanding credit card debts. This will pave the way for you to start saving for retirement and minimise debt as you undertake new liabilities such as a home or car loan during this phase of your life.

Build endurance
The 30s are a good time to start planning for retirement, when time is still on your side. Retirement planning and investing remain a vague concept to most. However, it is important to familiarise yourself with the principles of investing, such as diversification and dollar-cost averaging.

There are many advantages to being able to actively manage your own investment portfolio. However, that requires access to information, significant investment knowledge and keeping up with the markets constantly. We have found, through focus groups, that people do not mind taking risks for higher returns. However, they lack the confidence, information and skills. That leads us to the next point.

Get a trainer, a regime
There is nothing like an expert to help you achieve your financial fitness goals. An investment adviser or relationship manager can help you with an investment strategy to set up your portfolio, or to begin planning for the needs of your young family.

He can advise on working towards significant early financial goals, and your retirement objectives subsequently. In an uncertain economic environment such as now, having a reliable financial partner is also useful.
 Prevent pain
Even the best of plans can be derailed by the unexpected, so it pays to be prepared. For savings, the general rule of thumb is that you should have at least six months’ income as an emergency fund to see you through sudden expenses or unforeseen events such as temporary unemployment.

If you have yet to be covered by insurance, get on the bandwagon. In your 30s, the need to be insured increases significantly once you have dependents, such as a spouse, children and elderly parents.
Also, insurance premiums tend to increase steeply from about the age of 40. Plans to consider include life insurance if someone depends on your income or livelihood, disability insurance, mortgage insurance and accident and critical illness insurance

an excellent article from Jeffrey Ong

Danamon Sells Insurance

Indonesia’s sixth-largest lender Bank Danamon (BDMN), controlled by Singapore’s investment fund Temasek, will increase the contribution of fee-based income to the bank’s total revenue. Fee-based income would account for between 30 and 35 percent of revenue in the medium-term of about three years, compared with 25 percent at present.

The banks’ main income comes from its primary business of disbursing credit, but analysts have said that Indonesian lenders’ net interest income, which is derived from interest charged on loans, will be under pressure in the near-term as the central bank sets a low interest rate environment to spur growth in the country’s economy.

Indonesia’s commercial banks have seen strong fee income recently on the back of rising transactions amid booming economic activities, helping offset pressures on net interest income. One of the ways to boost fee income, is through bancassurance, in which banks partner with insurers to offer insurance products and get fees for every premium sold.

Minimum Wage

July 16 — The Minimum Wage Order 2012, which was gazetted today, will take effect on January 1 for employers who employ six or more workers.

For employers employing five or fewer workers, the date of enforcement will be on July 1 next year, according to a statement from the Human Resource Ministry. It said the commencement date also applied to employers who were carrying out professional activities classified under the Malaysian Standard Classification of Occupations (MASCO), regardless of the number of employees.
The Minimum Wage Order 2012 was gazetted in accordance with Subsection 23 (1) of National Wage Consultation Council 2011.

Further information on the gazette entitled the “Minimum Wage Order 2012 P.U. (A) 214/2012” can be obtained at federalgazette.agc.gov.my. According to the gazette, the minimum wage rate was fixed at RM900 per month or RM4.33 per hour for the peninsula and RM800 per month or RM3.85 per hour for Sabah and Sarawak

Corporate Leadership

With the stature of a leader, few care, understand or have the patience to size-up the real weight of being a leader. Being a leader is a lonely and high-pressure job, but what does it really take to ensure, a leader doesn't fail.

Invulnerability:

Leaders who don't allow for others to see their weaknesses are set to fail. Being human is key to fostering trust and allowing for open relationships to prosper. Allowing others to see who you are only makes them trustworthy. Trust leads to healthy conflicts.

Harmony

Leaders who don't allow constructive conflicts to take place are set to fail. Knowing other people's viewpoints is key in finding solutions and achieving goals. Allowing for difference of opinions leads to productivity, creativity and superior results. Healthy conflicts lead to clarity.

Certainty
Leaders who seek certainty rather than clarity are set to fail. No one knows the future, therefore rather than exhausting efforts in getting assurances; don't be afraid to make incremental decisions with limited information. Clarity leads to accountability.

Popularity
Leaders who want to be liked by everyone, rather than ensuring accountability are set to fail. Leaders who hold people accountable only earn the respect and admiration of others not resentment and poor performance. Accountability leads to results.

Status
Leaders who put their status, position and role above that of results, are set to fail. Results are bullet proof, whether people like you or not. Respect for a strong leader comes from the results he/she delivers not how much he is liked. Putting results before status leads to high-performance leadership.

Leaders who instill trust, foster healthy relationships, are decisive, accountable to others and themselves, and honorable will always win. These five traps should be used as a checklist that leaders keep on their desks, in the boardroom, and at home.