B40 Health Scheme - Great Eastern Contributes RM2 Billion

The government will pilot a national health insurance scheme for the bottom 40% of the population (B40). Under the B40 Health Protection Fund scheme, the government together with private insurers will provide free protection against the top four critical illness and up to 14 days of hospitalisation benefits starting in January.

The free protection against the top four critical illness will go up to a sum of RM8,000, while the hospitalisation income cover will be at RM50 per day or RM700 per annum.

Great Eastern Life Insurance has agreed to contribute the initial seed funding of RM2bil to this fund, which will be managed by Bank Negara Malaysia, said Finance Minister Lim Guan Eng in his Budget 2019 speech.

According to Great Eastern’s spokesman, the insurer will be making an announcement before market opens on Monday.

Meanwhile, the Life Insurance Association of Malaysia (Liam) welcomes the tax relief on the separation of the Employees Provident Fund (EPF) and life insurance or takaful.

This is now separated into RM4,000 for EPF and RM3,000 for life insurance or takaful, from the previous tax relief of RM6,000 for the combined EPF and life insurance or takaful.

“We believe this tax relief separation will give life insurance the right focus and encourage indi­viduals to purchase this critical form of protection.

“The savings in EPF will meet the individual’s retirement needs, while life insurance will ensure that the family is financially protected if the breadwinner meets with an unfortunate event,” said Liam president Anusha Thavarajah.

This incentive will also help to increase Malaysia’s insured population to 75% from the 55% penetration rate of insurance and takaful over the past five years based on the 2016 Bank Negara Malaysia Financial Stability and Payment Systems Report.

Eliminating multiple ownership of life insurance or takaful policies, only 35% of Malaysia’s population were found to be insured over the past five years.

EPF & Life Insurance Tax Relief 2019 Budget

The Life Insurance Association of Malaysia (LIAM) welcomes the tax relief on the separation of EPF and the life insurance/takaful as proposed by the government.

LIAM president Anusha Thavarajah said on Friday the insurance body supported the separation into RM4, 000 for EPF and RM3,000 for life insurance/takaful.

Previously, tax relief was RM6,000 for EPF and life insurance/takaful combined. 

“This tax relief separation, we believe, will give life insurance the right focus and encourage individuals to purchase life insurance as a form of protection that is critical for all Malaysians. 

“The savings in the EPF will meet individuals’ retirement needs while life insurance will ensure that the family is financially protected if the breadwinner meets with an unfortunate event,” she said. 

Anusha said based on Bank Negara Malaysia's 2016 BNM Financial Stability and Payment Systems Report, the penetration rate of insurance and takaful was about 55% for the past five years. 

Eliminating multiple ownership of life insurance/takaful policies, this figure reduces to 35% of population insured. 

Out of this, only 4% of households in the lower income group has some form of life insurance/takaful cover. 

“Therefore, the separation of the EPF and life insurance tax relief would certainly benefit the rakyat by encouraging them to buy life insurance for themselves and their loved ones and help to increase Malaysia’s insured population to 75%,” she said.

Anusha also said LIAM thanked the government for waiving the stamp duty for the purchase of Perlindungan Tenang products. 

“This is extremely encouraging as Perlindungan Tenang products have been specially developed to incentivise the youth, young families and B40 household segment to purchase life insurance,” it said.

The premiums for Perlindungan Tenang products has been specially priced at premiums from as low as RM3 per month. 

“We welcome the public private partnership announced by the Government via the setting up of a Critical Illness Fund called Dana Perlindungan Kesihatan Nasional B40,” she said.

Finance Minister Lim Guan Eng, had in his Budget speech, emphasised insurance and takaful could act as a safety net by providing financial support and enabling households to get back on their feet especially for the lower income groups. 

“In partnership with the private insurance industry, the Government will pilot a national B40 Health Protection Fund to provide free protection against top 4 critical illness for up to RM8,000 and up to 14 days of hospitalisation income cover at RM50 per day starting  Jan 1, 2019. In other words, hospitalisation income of RM700 per annum is available. 

Great Eastern Life Insurance has agreed to contribute the initial seed funding of RM2bil to this Fund to be managed by Bank Negara Malaysia.  

Lim said the government expects the fund size to grow with more partnership and contributions with other insurance companies. 

“This is a big step for Malaysia because for the very first time, together with the Employees Provident Fund and the Social Security Organisation, we are starting a more comprehensive social welfare protection coverage, particularly for the middle- and lower-income groups,” he said.

Errrrrrrr Cari Makan Errrrr Cari Makan

Former Public Accounts Committee (PAC) chairman Datuk Seri Hasan Arifin denied today any knowledge of or involvement in the alleged tampering of the 2016 Auditor General’s report on 1MDB.

Hasan also insisted that any manipulation of the document would have occurred after his time with the parliamentary watchdog panel.

“That is not my time and I don't know what the current deputy PAC chairman meant by his remark in Dewan Rakyat yesterday. As far as I know, what was presented is as it is,” he said to reporters in the lobby of Parliament today.

Honoring Sardar Vallabhbhai Patel

As the Statue of Unity honoring the Iron Man of India, Sardar Vallabhbhai Patel is unveiled in Gujarat today, it is just the right time for today’s leaders to take a moment to reflect, learn, and imbibe all these qualities from one of India’s most visionary leaders.

‘When the going gets tough, the tough gets going.’

If there is one Indian leader who stands out as the toughest of the lot and embodies the aforesaid thought, it is none other than the very own Iron Man of India - Sardar Vallabhbhai Patel. Patel is credited and remembered as the man who united India post-independence. Through his drive, his persistence, his negotiation skills, he lobbied with princes of more than 562 princely states which led to the creation of today’s Indian republic. Like a true leader, Patel used all the forces in his armour-from negotiation to engagement to invoking patriotism to unite these fragmented states into a single country.

Decades later, these very skills remain as relevant for today’s leaders, who are facing a dynamically changing work order, a fragmented workforce, and the impact of technology which is both easing out work as well as posing new challenges. What qualities can the leaders of today learn from the Sardar in their quest to build a cohesive organization?

The Unifying Force - Sardar Patel, was not just a freedom fighter and a political and social leader, but also the architect and unifier of modern India. He was the main force that led India’s integration into a united, independent nation. Patel orchestrated the country’s political integration and ensured the merger of more than 562 princely States with the Union of India at a critical period in the history of India with the swiftness of a military commander and deftness of a visionary leader. What makes this integration even more remarkable is that it was achieved without any bloodshed. It was his insight, wisdom and diplomacy that drove sense into the minds of the monarchs who agreed accession to the Indian republic.

A corporate leader today needs to be the unifying force of the organization. With diverse operations spread across locations and diverse people working towards a common goal, it is absolutely crucial that a leader has the vision, wisdom and pragmatic approach to ensure unity. Unifying is a tough task and unless the right approach is used, it will not succeed. A corporate leader, just like Patel, needs to learn the art of unifying with insight, wisdom, tact and diplomacy. A leader that can be the unifying force and bring together all the different stakeholders of an organization, is a true leader. 

A Vision for Tomorrow, Today - Sardar Patel was a true visionary who saw ahead of his times and could inspire the masses to share that vision as well. That is a quality that any leader today would benefit by greatly - to not only be able to see into the future and assess the path ahead but also to be able to share that foresight. At the workplace too, employees quickly realise whether their leader focuses on the immediate or on the eternal - the next step or the big leap - today's agenda or the bigger picture. This might often entail losing sight of the smaller details but a leader with a vision needs to be able to dream big and then lead the way through and beyond the details. That is the essence of true leadership - being able to focus beyond immediate obstacles, preparing for what is to come and never losing sight of the ultimate goal that you want to achieve together.

Drive to Learn - Born in a farmer family, Sardar Patel worked on the land with his father. However, his dreams were to go beyond the borders to study in England and become a lawyer. Money was short but his determination to learn was strong. Due to lack of funds he was unable to travel and complete his education in the promising land of England. His learning spirit did not dampen. Patel borrowed books from friends and worked hard to become a lawyer, which he did! 

Sheer determination and commitment to goals is a quality that leaders would benefit imbibing irrespective of the organization they work in. A motivated learner can inspire the entire team (in Patel’s case, the entire nation) to commit to continuous learning and upskilling themselves. 

The Power of Negotiation - Among the many achievements that India’s first Home Minister and Deputy Prime Minster is credited with is the capacity to effectively negotiate. Sardar Patel led the mission to unify India from the front. Apart from the British colonial provinces that had been allocated to India, Patel is credited with negotiating with 562 princely states to join the Indian Union. Patel achieved this feat in an incredible three-week period leading up to August 15th deadline with the support of the master-bureaucrat V.P. Menon. Engineering the accession of these states to form a ‘patchwork quilt’ called India was met with resistance at some states – but Patel went to great lengths to ensure that a deal was reached. 

Patel’s negotiation skills hold key lessons for corporate leaders worldwide – working tirelessly, exploring all possible options and ensuring win-win scenarios.

Donning Many Hats - Sardar Patel donned several roles as a leader during pre and after independence period. He was the first Home Minister and Deputy Prime Minister of India who played a major role in the freedom struggle of India and helped its integration into a united nation. Patel also acted as Supreme Commander-in-chief of the Indian Army during political integration of Indian and Indo-Pakistan War of 1947. Patel was also the chairman of the committees responsible for minorities, tribal community, and fundamental rights. As a robust statesman, Sardar Patel had the vision to create a vibrant administrative system. He was also the man who conceptualized some of the great policies to keep our country secured from border attacks.

In the context of a business enterprise, a leader has to play multiple roles. First, a leader has to ensure a collaborative environment just like Patel did to create a unified India. Advising, inspiring, and spearheading are some of the few examples of the long list of leadership tasks and Patel had all these traits as he played a spearheading role for independent India. Irrespective of the size of the business, the services it provides, or the growth it aims to achieve, the drive behind it comes from leadership. So, if leaders need to influence and make an impact, much can be learned from Patel’s approach as they try to make a difference in their organization. 

As the Statue of Unity honoring the Iron Man of India is unveiled in Gujarat today, it is just the right time for today’s leaders to take a moment to reflect, learn, and imbibe all these qualities from one of India’s most visionary leaders. While the Statue of Unity is now the world’s tallest statute, it can still never surpass the great heights Sardar Patel achieved in his lifetime!

Back To Basic Leadership

A good leader can transform an organisation or a team – taking it to new heights. To become an effective and successful leader requires a complex skillset – from being authoritative and decisive to having the ability to listen and persuade, but more importantly you need the emotional intelligent competencies. It’s often said that people are born leaders, but leadership can be learnt. From MBAs to leadership courses, management training initiatives and leadership theory books, there is a whole host of options out there to improve your leadership skills.

Back To Basics - But do we need to drop the acronyms and complex theories and go back to basics? This is exactly what I did during my own MBA course when I switched Boston for the Saharan desert and the ultimate leadership challenge: herding 164 stubborn sheep through its deadly sand dunes. I wanted to find out what I’d learn from stepping outside the modern-day, high-tech classroom and into an ancient way of life – unchanged for thousands of years. What could I learn from one of the oldest and most basic leadership roles on the planet?

A few years later, when I became the principal of a school of 2,000 pupils and managed a staff of 150 teachers, it was my desert experience that I drew from in order to lead, not my MBA. I believe we need to start prioritising experience and basic human skills over complex theory. Here’s what I learned:

Skill One: Empathy - Put yourself in your team’s shoes – what would you want from a leader? In my very first minute with the flock, I tried asserting my authority out loud: ‘Hello, I am your leader.’ The response? They turned their backs to me.

Each day I offered food and water, opened gates to let them pass, cleaned up their left overs. Slowly, they allowed me to get close to them. I realised it was only when I served them, repeatedly, that they began to accept me.

I needed to bring value to them and meet their needs for them to begin to look to me as their leader. What can you bring to your team?

Skill Two: Self-awareness - I was totally isolated from the modern world. No internet, no shelter, no company. Only silence and scorching temperatures.

The desert is a place where you do not have the option to choose the way you live. You just live the way it is.

To successfully adapt to change and lead your team through change requires a calm, clear head. This can only be achieved by building full awareness of your thoughts and emotions and how they are impacting your choices.

Skill Three: Trust And Respect - In the desert I needed the sheep to follow me, willingly and with confidence, so I could lead them to food and water – otherwise they would die.

It was only with time and continuous commitment that they started to trust me. Trust is essential to leadership. Without it, it is only a matter of time until the relationship collapses. Do we trust the boss who assumes he or she alone has the solution for everything, who treats people like machines or who thinks only of profit margin? Of course not. We trust the boss who trusts us and treats us with respect.

Leadership In Business

I think there are only two non-fiction subjects that have highest writing hours credited to them. One is cookery and another is leadership. Long ago, someone had told Pandit Ravishankar, "I would give life to play Sitar like you do." Ravishankar replied with a smile, "I did." People might love a talent but the patience that is needed to cultivate it is not very easy to commit to. That's where taking lead starts.

In hindsight, every person who joins an organisation as a fresher, dreams of becoming of CEO. Organisations create brilliant succession planning training and try to groom people from within the organisation. Over a period of time, organisations are waking up to the need of training, leadership coaching and continuous learning. At the same time, strong data and researches state that most desired results of such interventions come from real-time experiences and on the job practice.

However, the first word of caution here is, not everyone is good at everything. So many managers are good at starting something but cannot bring it to the finish point. Some may be good with research but not with administration capability. The catch here is to always find someone with complimenting skills.

The second caution is to keep self-ego in check. People who are not from your skills background will be different in mindset too. Sometimes there might be a comparison in efficiency too. As long as you are clear that complimenting skills mean coming from a skill set that needs to work with each other to make a complete picture.

Like every other skill building, leadership is a skill and it needs to be practised. Here we take a look at five basic practices of day-to-day life to become a better leader and regardless of any team size.

1. Have a vision and share it: Have you ever written down what your vision is for yours or your team/ organisation's growth? If it's written down, is there enough affirmation and repetition to the team/self? Has it been made exciting and challenging enough to keep going?  
2. Ask for shared goals: A leader is as good as he/she can groom the team into a winning one. Ask the team to share their personal goals. Employees need to match personal goals with organizational vision. Most attritions happen because people do not align personal goals and hence cannot see themselves growing with the organisation.  
3. Measurable objectives: A lot has been said about SMART goals. But the need to look at measurable objectives in terms of clear statistics and mentioned quantitatively is fundamental. For example, "we are going to be profitable this year" versus, " we have to reach one hundred crores on 30th December." Clearly stated and quantitative objectives give a sense of reason to follow it. The accomplishment of that goal comes with a high achievement motivation.  
4. Lead self with directives: There is a lot of training and spiritual guidance available on "Know yourself." Why the need of knowing self is crucial for leaders? Once you embark on the path of clear directives, an unbiased self-analysis helps you recruit better people who do not share the same weaknesses. It helps in the long run to have people who do not say yes always. This also proves the way forward to learn new skills and develop innovative bent of mind.  
5. Innovation is a habit: Look at yourself and everyone else in the organisation. Are people getting better in what they do? Is there an innovative approach in daily problem-solving? I personally recommend "Ideation Pathway" for making innovation a habit. Every week, call for an ideation meeting and give them problems. Ask them to suggest solutions without worrying about implementation. The results are astonishing. "Apophenia" is the ability to see patterns of repeated mistakes through random data. Use it to advantage for stopping continuous errors.

Leaders are not born. They are actually made by constant learning and practising. As long as you are not afraid of being judged, the freedom will set you on the path of leadership.

80 Out Of 112 Foreign Driver - No License

The Road Transport Department (JPJ) has expressed concern over the rise in numbers of foreigners driving without licenses in Cyberjaya.

Selangor JPJ director Nazli Md Taib said many foreign drivers attempted to beat traffic lights, one of seven major traffic violations, as they did not understand traffic laws in the country.

“Within an hour, 80 out of 112 foreign drivers inspected were found to have been driving without a licence,” he said in a press conference after an integrated operation to curb the issue here yesterday.

The operation was carried out by 190 enforcement personnel from the JPJ, police, National Anti-Drug Agency, Customs Department, Department of Environment and Sepang Municipal Council.

Nazli said of the 112 foreign drivers inspected, most of them were from Nigeria (30), followed by Pakistan (27), Indonesia (23), Bangladesh (20), India (eight) and Palestine (two), with one each from Lebanon and Jordan.