Low Participation On Housewives' Social Security Scheme

Only 35 per cent or a total of 176,883 housewives are being protected under the Housewives’ Social Security Scheme (SKSSR) as of yesterday compared to the target of 500,000.

Government strongly encouraged all housewives under the age of 55 to get covered and husbands to contribute to the scheme on behalf of their wives for their protection and welfare. The SKSSR enforced on December 1 last year was introduced under the Housewives’ Social Security Act 2022, aimed at providing social security protection to housewives from domestic disasters and disability while managing households.

As of May 24, RM167,000 in SKSSR benefits had been paid to insured housewives and their families, proving that the scheme could provide protection for the beneficiaries should they be involved in accidents, or experience disabilities or deaths when managing households.

Meanwhile, our government is aiming for one million gig economy workers to contribute to Socso to protect them from various risks while on the job.

Insurer Withdrawing From Risk

Last August (2022) - Canyon Park Villas - a condo complex that sits atop a steep wooded canyon outside of San Diego - lost its fire insurance, as more private providers across the state decline to renew policies in the face of growing wildfire risks.

When the condo association looked for replacement coverage, the cost was nearly 13 times the old rate: $600,000 a year, up from $47,000. To pay the bill, the complex of 240 clustered units levied an immediate special assessment of $2,500 per home to cover the cost, with another expected later this year.

Residents are struggling to pay - The residents of Canyon Park Villas are part of a growing flood of California homeowners being forced into the world of last-resort insurance, where prices can be astronomical.

Their case is extreme, but the problem is increasingly common: As climate-change-fueled disasters worsen, insurance against them is becoming unaffordable, leaving many families, organizations and governments at growing financial risk.

Between 2015 and 2021, over 1.3 million Californians had their fire coverage dropped by an insurer, out of a total of around 10 million total polices in the state.

A 2022 report from Rand Corporation found that in zip codes in California's Sierra Foothills with the highest wildfire risk, insurance rates are expected to jump by 18% for every $1,000 dollars of coverage by 2055 - making those areas potentially unaffordable to live in.

Insurer Refused to Insure - With 13 of California most destructive wildfires having happened in the last five years, according to the National Aeronatics and Space Administration (NASA), worried insurers are issuing increasing "non-renewals" to policyholders.

In response, the California insurance commissioner, starting in 2019, began blocking insurance companies from carrying out the practice in parts of the state impacted by fire and where states of emergency had been declared.

The blocks "prevent the insurance companies from actually overreacting to the fire and wanting to just, on a whim, (not) renew all these folks. But insurers say worsening wildfires have put the California market under strain, and raising premiums must come alongside making bigger payouts if companies are to stay in business.

After a record wildfire year in 2018, California insurers paid more than $13 billion in claims.

Over 80% of people who contact her in search of wildfire insurance policies are now considering leaving California if they cannot find affordable coverage. Other insurance options beyond private policies are available but not very attractive. It typically has high premiums, and only covers structural damage to properties, compared to traditional private policies that usually also cover loss of a home's contents.

Natural Ecosystem - Fire is a natural part of the California ecosystem, but climate change is increasing the length of the fire season, and leading to droughts that dramatically increase the amount of dead vegetation that feeds large destructive fires.

The average area burned in California each year in the 2000s and 2010s was twice the 1990s average - and in 2020 to 2021 it was 10 times higher. That fast-growing wildfire risk is a major problem, especially with protections from losses, including through insurance coverage, weakening.

HonestBee - Not Too Honest

Grocery delivery startup - honestbee - has no funds available to settle outstanding debts to former staff, vendors, and other unsecured creditors, amounting to S$319.9 million. The company’s sole secured creditor, Formation Group, has reportedly recovered approximately S$700,000 from the assets of honestbee, a far cry from the US$4 million worth of debentures held by the venture capital. Numerous former employees of honestbee are also still awaiting unpaid salaries.

The liquidator appointed for honestbee, was only able to recover around S$720 from excess payments related to “electrical supplies.” Following a creditors’ meeting on May 18, the liquidator is planning to seek approval from the High Court to discharge itself from its responsibilities and dissolve honestbee.

Founded in 2015 by three Singaporean entrepreneurs — Joel Sng, Isaac Tay, and Jonathan Low — honestbee quickly gained momentum as an e-grocer. Over the years, it expanded beyond grocery delivery services to offer other services such as food delivery and laundry services. 

The company experienced remarkable success within months of its operation and had successfully established a presence in eight countries across Asia, including Taiwan and Japan.

Poor management - However, honestbee’s fortunes took a downturn in 2019, leading to its eventual downfall. The company faced a financial crisis, due to poor capital management. The company made lavish purchases, including a property in Japan, which was worth about US$1.1 million. The Company went on to create multiple shell companies, which directed honestbee to make payments to these entities in exchange for their products, all while keeping these transactions undisclosed to investors.

Next Of Kin Responsible For Tax Owing

The government does not want to amend the Income Tax Act which stipulates that the administrator or next-of-kin of a deceased income taxpayer has to pay the tax arrears. Deputy Finance Minister claimed that if the act is not implemented against the executors and heirs, it is feared that the motivation and sense of responsibility of the people to pay their taxes will decline.

Unmotivated To Pay Taxes - Finance Ministry believes that if this (compulsion) is not done, there are parties who are irresponsible and unmotivated to pay taxes. They are waiting to die because then all debts do not need to be paid and debts with IRB (Inland Revenue Board) are settled.

The matter is already (included) in the act and the IRB informed that the amount (tax) charged is the amount of (taxable) income until his death. If the heirs can pay the tax they should do so. 

Next Of Kin Responsible For Taxes - Inland Revenue Board said that the next-of-kin of deceased taxpayers are fully responsible for their commitments including income tax management. Section 74 of the Income Tax Act 1967 stipulates that any income tax arrears cannot be automatically written off even if the individual involved is certified dead.

Accident Claim RM3.9 Million Dismissed

Malaysia Selayang Sessions Court has dismissed a RM3.9 million claim for personal injury by a motorcyclist, who is now bedridden after suffering multiple fractures to his vertebrae. N Vikneswaran, 35, failed to prove his claim against insurance company AXA Affin General Insurance Berhad, N Shathiswaran and R Muneeswari.

Shathiswaran was the driver of the car Vikneswaran had collided with, while Muneeswari is the owner of said car. 

The Court ordered Vikneswaran, Shathiswaran and Muneeswari to pay costs to AXA Affin. 
As it is required under the law for appeal purposes, the judge had assessed the damages to be about RM3.9 million should the negligence suit be allowed.

In his statement of claim, Vikneswaran alleged that he collided with the car driven by Shathiswaran at Jalan Batu Caves, Selangor at about 5am on Aug 29, 2016. Muneeswari had taken a vehicle insurance policy from AXA Affin.

The insurance company had ordered its adjusters to investigate the claim as they suspected something amiss.In their statement of defence, AXA Affin had alleged that Shathiswaran had lodged a false report about the involvement of the car in the alleged collision.

Scam SIM Card Investment

Malaysia Police have crippled a bogus telecommunications investment scheme syndicate with the arrest of a local man. A 32-year-old suspect was arrested following a raid here on Wednesday (May 17). Two mobile phones, an ATM card and two cheque books believed to be used in the investment scam was sized.

The suspect is the mastermind of the syndicate which has been operating since 2020. The syndicate offered bogus investment schemes for SIM cards and other telecommunications service-based products. The investment packages were claimed to pay out lifetime returns.

Police investigations revealed that investors only received returns for a short time before the company claimed it was suffering losses and could no longer make payments. Three police reports had been lodged over this scheme so far, involving about RM1.42mil in losses.

Investment Shaman Aka Serial Killer

In Muslim-majority Indonesia - where nearly 10 per cent of the population live below the poverty line, some view shamans as traditional healers. Several Indonesians claimed they were scammed by people claiming to be spiritual figures, promising to turn small investments into immense wealth. Indonesian Police say some alleged scammers turn to violence when their victims come looking for their money. 

Halal Investment - The scams have circulated widely on Indonesian social media. Just two dozen Facebook posts advertising so-called shaman investment schemes were viewed more than 1.4 million times as of this week. One post, viewed 643,000 times from April 8 to May 17, claimed a Muslim sheikh would help people multiply their funds, and that the service did not violate the tenets of Islam.

Police identified Wowon Erawan, a 60-year-old who worked with two partners to trick migrant workers into sending them money. Police accused the trio of murdering nine people including Wowon’s wife and stepchildren to cover up their crimes. Police said the three men had been arrested, and that they had confessed to killing victims with pesticide-laced drinks.

Wowon wan repented and apologised to victims’ families at the police press conference. The trio face the death penalty if found guilty.

Another Shaman - police arrested another accused serial killer shaman, 45-year-old Slamet Tohari, after a man was reported missing by his family. Slamet also stands accused of boasting he could magically multiply money, luring victims into rituals before poisoning them with potassium cyanide when they asked for their money back.

At least 12 bodies have been uncovered on Slamet’s land, according to police, who said in a statement last month the number could be higher after they received further reports of 28 missing people.