Choosing Your First Credit Card In Malaysia: What You Need To Know

  • By CompareHero.my
  • June 25, 2020

Malaysia: Are you planning to get a credit card for the first time? With different types of credit cards available, you need to learn how to compare credit cards to see which one is suitable for you. Learn more by reading this quick beginner’s guide to choosing your first credit card.


If you’ve landed on this page, chances are you’re pretty new to credit cards and are considering getting one for yourself. In this day and age, getting a credit card seems like a rite of passage for anyone in their adulting phase… or is it? 

But before you make the jump, it’s important to first make an informed decision on whether or not you’re ready to get your first credit card. Take this article as your first credit card guide, as we’ll equip you with what you need to know before you get your first credit card. 

You’ve never had a credit card before… so should you even get one? 

If this is your first time getting a credit card, you’ve probably heard of the many warnings against using credit cards. We’re not going to sugar coat it for you – the truth is that credit cards can easily get you into debt, but that only happens if you don’t practice good financial habits. 

Back in the day before credit cards came with all sorts of rewards and benefits, there was little to no reason to use it. But today, having a credit card makes a lot of sense. When managed wisely, you’ll get to reap a world of benefits that cold hard cash won’t be able to do for you. 

Here are the advantages to using a credit card: 

1. It’s fast and efficient
Pay for what you’re charged without the hassle of finding notes and coins. Plus, a card lets you buy just about anything online. 

2. It’s not gross 
With contactless payment (tap-and-pay), you don’t have to exchange dirty notes during your transactions. This is particularly important in these Covid-19 times!

3. It’s safe
Credit card providers typically offer some form of protection over payments done with the card. 

4. It allows for instalment plans
Depending on the provider, you can buy big ticket items with a 0% interest rate. 

5. It allows you to buy now and pay later
We’re sure you’d know this by now. A credit card lets you make an expensive purchase and only pay back later on.

6. It provides you with emergency cash
If you ever need cash, you can head to the ATM to withdraw money using your credit card. 

7. It’s super rewarding
Cashback, points, air miles, shopping discounts… you’ll get them when you use your card. 

8. It’s great for your credit score
If you’re responsible with your credit card usage, you can actually build a healthy credit score. Your credit score is the three most important digits of your life, and impacts you in more ways than one. If you’re unfamiliar, you must read more about it here. 

But to be transparent, there are some disadvantages to using credit cards, too: 

1. It’s easy to get into debt
You know this one already. It’s fun when you tap and pay for cool stuff, but if you’re not paying attention to your outstanding balance, you’ll be in a rude awakening soon. 

2. Expensive cash advances
In emergency situations where you need to use your credit card and withdraw cash from the ATM, you’ll be charged a high interest rate (about 17-18%) and a transaction fee. 

3. You can be at risk of fraud and scams
Even with safety and security features, there are always people out to scam others. It’s important that you don’t simply divulge your credit card information to other parties (e.g. card number, 3-digit at the back of card, 6-digit verification pin that comes through SMS). 

4. Can be bad for your credit score
Only if you miss payments or don’t pay the full amount. 

5. There are hidden charges and fees
Arm yourself with knowledge of these fees because they can subtly add to your owing. 

  • Annual fee: A fee charged yearly for the privilege of owning a credit card. Many cards do waive these fees but at a term set by the issuer.
  • Cash advance fee: Up to 18% interest rate if you ever need to borrow emergency cash.
  • International ATM withdrawal fee: A one-time transaction fee on top of the bank’s currency rate.
  • Balance transfer fee: Up to 5% if transferring balance from one credit card to another. Not so important for you at the moment, as you’re looking for your first credit card.
  • Late fee: The fee which the issuer imposes on you if you miss out on paying your credit card bill on time.

Credit card vs. debit card: What’s the difference?

There are also times when you’ll ask yourself… why would you need a credit card if you can just use a debit card? In the evergreen debate of credit card vs debit card, here’s what you need to know in a nutshell. 

While credit cards are pretty much an avenue for you to borrow money to pay for something in advance, debit cards basically deduct your existing money from your savings/current account. The great thing is that you don’t borrow any money, so you won’t ever be in debt. But this also means that you won’t get rewarded when you spend – and if you’re going to spend, might as well get rewarded for it, right? 

Having a debit card will do nothing for your credit score, as it doesn’t gauge how well you repay your debt (since you will have no debt by using a debit card). It also doesn’t allow for instalment plans, so if you’re going to buy something that comes with a big price tag, you’ll probably need to save up for it however long it takes. 

So, are you ready to get your first credit card? If the answer’s yes, let’s get right to the first step… 

First things first, make sure you meet the minimum salary for credit cards in Malaysia 

As a general rule of thumb, credit card applicants in Malaysia must earn RM24,000 annually (approx. RM2,000 monthly) in order to be eligible for a credit card. If you don’t meet that requirement yet, it’s best to wait until you can earn more so that your application can get approved. 

Your salary will also dictate your credit limit. Your credit limit is basically the maximum you can charge to your credit card, and is usually put in place to stop you from going overboard. In most cases, banks would give you a credit limit of 2x your monthly salary. 

Also, in order to qualify for a credit card, you’ll need to show proof of income – typically a 3-months’ payslip, or in some cases, your EPF statement. If you’re running around doing odd jobs that pay you, say, RM50,000 a month but without a proper payslip or EPF statement, the bank may still turn you down because there’s no consistent proof of employment. 

Without that, you’ll be a risk for the bank to take. “What if this person doesn’t pay on time? What if this person never pays back?” Nobody would want to lend even a pen to someone who can’t return it! 

At time of writing, there are 54 different credit cards with various rewards for Malaysians with a minimum salary of RM2,000/month. If you’re interested, you can browse them all here. 

Read also: A Guide to Choosing and Applying for Credit Cards

How To Choose The Right Credit Card For Yourself 

If you didn’t know, there are many different types of credit cards, and with that, there are also many different types of credit card rewards. You have to find one that suits your lifestyle and preferences so that you can really get the most benefit out of it. 

So, how to choose your first credit card? Generally, there are a few types of credit cards and these are four popular types best suited for first-timers: 

1. Cashback – Converts the money you spend back into cash rebates. The amount you get back depends on the cashback rate of the credit card. 

2. Rewards – Point-accumulation with every Ringgit you spend. Can be used to redeem vouchers and items later on. 

3. Islamic – Shariah-compliant with the prohibition of gharar (overcharging) and riba (interest). Comes with takaful coverage and the convenience of paying Zakat. 

4. Airmiles – Designed to let you earn air miles every time you spend. Comes with loyalty programs offered by airlines. 

Most first-timers would either go for a cashback or rewards-based credit card. If you’re wondering which is the right option for you, just ask yourself – would you prefer to get money back as is, or would you rather get a gift or a voucher after accumulating points? There’s no correct answer – just choose one that you’d rather have. 

You might also be interested in: Quiz: What’s Your Credit Card Type?

As this is your first credit card, you may want to look for a card that has zero annual fees. Most cards typically come with annual fees (some as low as RM30, some as high as RM1,300), but some can be waived according to the terms set by the issuer (e.g. swiping more than 12 times a year, swiping a minimum of RM50,000 a year). A card with zero annual fees will make it fuss-free for a newbie like yourself. 

To compare all credit cards with zero annual fees, just click here. 

8 very important things to remember when it comes to using your first credit card 

Like we mentioned at the beginning, having a credit card is a huge responsibility on your end. As a first-timer, you really need to be prepared to control the power that will soon be in your hands. We don’t really want to quote lines from a spider superhero movie, but with great power truly does come great responsibility.

1. Avoid buying things you can’t afford 

If you’re using your credit card because you have no other means to afford buying something you want, that’s a sign that you’re probably using it the wrong way. Make sure to always spend within your means so you don’t incur debt.

2. Don’t inflate your lifestyle – you don’t need to proof anything to anyone 

Just because you have the power to spend more, doesn’t mean you should. Don’t start buying RM20 lattes every morning, unless you can afford it. Don’t spend above your income, and you should be fine. It’s not worth being in debt just so you can have the fanciest lifestyle and the latest gadgets. 

3. Always pay your bills on time, and in full 

Even if you disregard the first two tips above, make sure you pay your bills on time and in full. Money problems start when you delay your payment. Pay for things either immediately or within the 30-days statement cycle, or you could face high charge interests (typically 15%) which will be carried forward into your next statement, and the next statement, and the next statement…

4. Remember that you can make or break your credit score 

As you move forward in life, you may want to buy a car, buy a house, or get money for your business ideas. Whatever it is, banks will look at your credit score to determine whether or not to lend you any money. If you’re bad with your credit card repayment, you’ll destroy your credit score and have your applications denied! 

5. Keep track of your credit utilisation 

Try to keep your utilisation percentage to 30% (credit used : credit limit), as a lower ratio would reflect positively on your credit score. Here’s an example. If your credit limit is RM12,000, try to keep your credit balance to no more than RM3,600 as good practice.

6. Start to create a financial buffer 

It’s never too early or too late to start saving for your own emergency fund. Although you have a credit card to save you in emergencies, you’ll still need to repay what you borrow from the bank. Start saving a portion of your income so that you can easily pay off any emergency credit card utilisation in future. 

7. Always check your credit card statement 

Whenever your statement comes, check each line to ensure that there are no discrepancies. If you’ve been charged for something you did not authorise, get in touch with your bank immediately to see how you can rectify the situation. 

8. Remember to check your rewards 

Onto something a little less scary, remember that credit card points can expire. Check in periodically to see how many points you’ve accumulated, and what you can redeem. 

Read also: 10 ingenious money tips from Malaysian dads

After this, should you consider a second, third, fourth credit card? 

Let’s take it slow first. Start off with one credit card and see if you can manage it well. If you’re piling on debt, it would be wise to reassess your financial management before taking up another credit card. 

You may also ask – why would anyone need a second credit card? Actually, many people have more than one credit card, and that’s mainly because different cards have different rewards. There are different merchants that would favour different banks, so if you have more credit cards, you’ll be able to reap more rewards from a wider variety of merchants. 

Some people also take up more credit cards to game their credit score. With more credit cards, their credit limit increases. If they keep their utilisation rate low, this would reflect well on their credit score. Regardless, this would be a conversation to have with yourself later on in future. As for now, it’s on to you to manage your first credit card wisely! 

Related: A Guide to Choosing and Applying for Credit Cards

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Up Your Gig: How Do People Make Money On TikTok? Here Are 6 Clever Ways

  • By CompareHero.my
  • June 24, 2020

How to make money on TikTok? With the current TikTok trend in 2020, TikTok superstars are earning good money from the app. Read on to learn how they make money on TikTok, and how much they can earn on TikTok.


Unless you’ve been living a provincial life, you’d probably have come across countless videos of people dancing/lip-syncing/teaching/pranking/literally doing anything on TikTok. These videos get reposted everywhere, so you’d probably have seen them shared on Facebook, Twitter, Instagram, and in every nook and corner of the internet.

But as much as you may (or may not) like the app, did you know that there are teens using TikTok and earning up to thousands per video? Considering that the average monthly salary of a Malaysian CEO is about RM30,000, suddenly filming ourselves prancing around doesn’t seem like a bad idea.

So, can you make money on TikTok? Can you earn money from TikTok? Can you do that even if you’re not a teen? Or if your hair isn’t one of the colours of the rainbow?

Before we get into how people make money from TikTok, let’s first address the very basic of all: what on earth is TikTok?! 

What is TikTok? A guide to TikTok for anyone born before 1995

First off, no, it has nothing to do with Ke$ha’s Tik Tok although you could say that they both won’t make you wake up in the morning feeling like P. Diddy.

In essence, TikTok is a highly, highly, highly addictive social app that lets you make and share short videos of up to 60 seconds. But unlike Instagram stories or Snapchat, these videos are permanent (unless deleted), and come with all sorts of accompanying songs/audio clips and incredibly creative video and audio effects.

There is no option to share text posts, photos, or any other stuff you get with other platforms. This means that TikTok users must completely rely on their ability to create fun, interesting, entertaining, and engaging videos in order to engage with their fans.

A quick look at its history will tell you that it’s actually created by a Chinese company, called ByteDance. (Psst… This also explains why US regulators have raised a lot of concern over the app in the past!)

Anyway, it launched in China under the name ‘Douyin’ in 2016, before being relaunched in the US in 2017. Both versions are pretty different, as Douyin follows the censorship rules in China and has some added features that the rest of the world has yet to access.

In 2018, the app combined with Musical.ly, a lip-syncing app which allowed users to record videos of themselves using existing audio clips, ranging from hit singles like Justin Bieber’s ‘Yummy’ to, umm, ‘dank-ified’ songs like… ‘Spongebob Versi Burung Gagak’.

How much can you earn on TikTok?

It’s hard to gauge these earnings as there isn’t a set rule. However, if you take a look at how much influencers charge for social media postings on Facebook, Instagram, Snapchat, and all, we’re guessing the figures wouldn’t run too far. Back in 2017, we found out that these influencers would earn about RM5,000 per post/video. Chances are, we could be looking at the same numbers with TikTok today, if not more or less.

If we look at it on a global scale, the numbers are waaaay bigger. According to The Guardian, marketeers are optimistic that the most popular TikTokers can charge close to USD200,000 (RM855,200.00) per post if they collaborate with other brands. They added that researchers also believe that some influencers may be able to charge nearly USD1 million (RM4,276,000.00) per post in the coming year! 


That’s as much as a decent Tropicana PJ bungalow costs! (Image source: Tech Realtors on iproperty.com)

To be honest, it’s a little hard to believe anyone could earn that kind of money from a single TikTok video… but who knows? We’ll be watching closely. But for now, that same article from The Guardian tells us that Loren Gray (@lorengray on TikTok), a 17-year-old singer and TikTok superstar with 44.7million followers, makes an estimated USD200,000 per post. Adding to that, Byte (TikTok’s rival and Vine 2.0), is said to be offering creators USD250,000 for videos!

Before we fly too far into the clouds, let’s reel ourselves back to reality. Such numbers are only fit for TikTok royalty with more followers than the entire population of Malaysia… so maybe keep your expectations *very* low if you’re just starting out. Oh, and if you do make a lot of money, don’t forget to pay your taxes to LHDN – they’ll be watching you, too. 😉

Read also: Social Influencers: How Do They Make Money from YouTube, Facebook, and Instagram

6 ways to make money on TikTok

If you thought people made money on TikTok by being famous, well, you wouldn’t be wrong. Fame would obviously help anyone make money, regardless of platform. But there are other ways to make money on TikTok, and we’ll show you how.

Here are 6 ways to make money on TikTok. Let’s start with the easiest and the most obvious of all…

1. Direct promotions

This is easily the most basic form of advertising. Got something to sell? Run your own t-shirt company? Run a chiro business? Run a farm? Whatever you’re selling, you can promote it on TikTok with interesting, engaging videos about your business.

During our research, we came across Mydin’s account (@mydinmalaysia on TikTok) – we honestly gotta say – they deserve the applause:

@mydinmalaysiaHari-hari MYDIN Murah bermula hari ini hingga 8 Jun! Jom kita pergi MYDIN!! ##mydinmalaysia ##hariharimydinmurah ##hhmm ##fyp ##foryourpage♬ Wipe It Down – BMW KENNY

Not only did this particular video capitalise on a popular TikTok trend (Wipe It Down challenge)… it even features the supermarket chain’s owner, Datuk Wira Dr. Hj. Ameer Ali bin Mydin, promoting their potatoes and cabbages on sale. To the everyday consumer, videos like these are incredibly fun and refreshing to watch.

The best part? It’s not a once-off thing – he’s in ALL of Mydin’s TikTok videos. While you may think that this won’t necessarily convert into sales, this strategy actually helps the brand stay relevant to users and reach out to new audiences. Oh, and +1000 points for capturing hearts.

Another example of using TikTok as a direct promotion:


Apart from teaching his audience about chiro stuff, TikTok user @drbrian_chiropractor also has a link to his clinic for people to set up appointments.

You can also use the platform to share helpful information in your area of expertise. This positions you as an expert, and helps you reach out to people who may be in need of your help.

2. TikTok brand deals and sponsorships

Here’s another basic and honestly, ancient (in digital years) form of making money on social media. If you have a large following, this means you’ve got eyeballs. And who else wants eyeballs? Brands. Big brands. Big brands with money to spend, and nowhere to spend it.

The great thing about TikTok is that it’s relatively new and it’s gaining incredible momentum. Not every celebrity or Instagram-famous influencer is on the platform, and therein lies a great opportunity for brand sponsorships.

“As we are doing more and more TikTok campaigns with our clients, most projects have a creator component where we’re looking for creators to partner with.” – Evan Horowitz, CEO of Movers + Shakers (social media agency) to Refinery 29


But then comes another question – how to get sponsored on TikTok? Well, before you do anything, you should first grow your followers and own a niche. Why do people follow you on TikTok? Is it because of your cool trickshot videos? Photography tip videos? Korean language tip videos?

Whatever it is, realise your niche and narrow down a sponsor from that category. Just remember that brands are always looking for good ROI, so ensure you have a healthy follower size and that you can replicate your successes for their sponsored videos.

And remember, if you’re getting sponsored, you need to make sure that you pull your weight. Don’t be gettin’ that sweet paycheck for a video, only to get 100 likes and 30 comments. It’s a business, not a charity!

Of course, there are ways to hike up your numbers – like using a TikTok bot – but that’s super unethical and we’d highly discourage you to do that.

3. Affiliate marketing (but in a pretty messy way… for now)

On our previous note on sponsorships, you can also try using TikTok for your affiliate marketing efforts. If you’re not sure what that means, well, it’s basically a ‘performance-based marketing strategy’ where businesses would reward you for bringing in traffic.

And in English, it basically refers to commission-based marketing. Let’s say you work with a new shopping site called Lozodo. Lozodo is obviously new and needs traffic. Lozodo sees that you have a huge social media following. Lozodo gives you a link to their site, and asks you to share it with your audience. You then share it with your audience, and 1,000 of them actually click that link. Lozodo gets that traffic coming in, and rewards you for each visitor that you bring in. The end!

So, back to affiliate marketing on TikTok. While there isn’t an existing TikTok affiliate program at the moment, we hear that TikTok is exploring the option of adding links to videos. You can see how easy it would be to get your users to click on the link right as they watch your video, but until then, you can consider doing it the old school, messy way of getting people to click on the link in your bio.

You can also explore the option of sharing a special promo code in your video. Taking Lozodo as an example, you can get Lozodo to create a special code just for your audience, and get rewarded for each time the code gets redeemed on Lozodo’s site.

4. TikTok consulting/account managing

If you thought TikTok sponsorship deals were the goal, well you’re wrong. Those who have a large following and who are actively running deals know where the real money’s at: in TikTok consulting.

Brands and celebrities want in on this, but let’s get real – not everyone (read: born before 1995) knows how to use the platform let alone strategise content around it. If you’re a creator yourself and have a strong TikTok following, you’re probably one who really understands the platform, its functions, the algorithms, the audience’s appetite for content, and TikTok content creation in its entirety. This is a skill that brands and celebrities are willing to pay big bucks for.

While we don’t have a Malaysian example (yet), we found out that Sean Young, a 26-year-old TikTok star with a million followers, makes USD10,000 a month just by being on TikTok four hours a day. Yep, he told Vox.com that about 10% of what he makes comes from his personal account, although he would like to get it to 50%. He actually makes a lot of money through running high profile accounts, like America’s Funniest Home Videos.

“December and this month are the first months I’ve made over $10,000. If everything goes how it’s going right now, I’ll make close to $150,000 or $200,000 [a year] hopefully.” – Sean to Vox.com in a March 2020 interview


If you’ve got what it takes, you can consider venturing down this path by running accounts for brands instead. Just be aware that the responsibility is huge, and expectations are high… so if you don’t know something as basic as TikTok’s ‘first five video’ rule, you maaay want to sharpen your skills first.

5. TikTok brokering

Wait – what – huh? How do you broker deals on TikTok?!

Well… it’s actually just brand sponsorship, but with you as the middle person. Like we said, brands are looking for creators, but they may not know where to find them. And it’s not just about finding any influencer, it’s also about finding the right influencer.

Unlike Instagram audiences who follow personalities, TikTok audiences follow users according to the type of content they produce. Instagrammers may post up content that just looks pretty no matter what they are – food, fashion, pets, selfies – but TikTok audiences would follow users according to their niches.

It’s odd to follow a TikTok user who only posts up easy cooking videos, only to find him posting about the latest Samsung phone the next day. As a TikTok broker, it’s your job to recommend the right TikTok star to whoever’s looking for one, and to ensure that the deal works in the favour of both parties.

6. TikTok live-streaming for donations

Okay, we’ve got to level with you on this one. We haven’t tried this ourselves as this writer’s TikTok account doesn’t seem to have the function for some reason, so we’re sharing this based on some of the information we’ve found online.

We learned from social media guru Elise Darma and tech site TechJunkie that TikTok creators can actually get real money when they go Live on the platform. It’s kinda like having your audience tip you.


GIF from elisedarma.com

So here’s how it works. Users can go to their TikTok profile and buy ‘Coins’. From what we saw, they don’t really cost that much:

Image from TechJunkie.com

So… what are these TikTok coins used for? With these TikTok coins, users can use them to buy TikTok live gifts.

When you as a creator go Live on TikTok, other users who watch your live stream can use their coins to buy you gifts as a way of tipping, or to say thanks for creating your content. From there, these gifts will transform into diamonds which you can cash out using PayPal.

Elise adds that the Chinese version of TikTok (Douyin) has an incredible e-commerce feature which allows you, the livestreamer, to add a shopping cart to the item that you’re selling.

“So it’s kinda like QVC or the shopping channel. You can go Live, hold an auction, and people can buy your product while you’re Live through the shopping cart feature.” – Elise Darma on her blog, elisedarma.com

So… how to get famous on TikTok?

Well, if there’s one big takeaway from everything that we’ve written so far, is that you have to have a following before you even think about getting a cent. So that begs the question – how do you get famous on TikTok?

The great thing about TikTok is its algorithm. This is also one of the reasons why TikTok is, in some ways, seen to be more powerful than Instagram itself.

See, unlike Facebook or Instagram stories, TikTok videos are similar to YouTube. You can publish a video today, but the algorithm may pick it up weeks or even months after it goes live. The platform will feature it into the feed of people who may like it, and in that way, it can turn an absolute nobody into a viral sensation overnight. (Apparently, it’s pretty common to go to sleep with 30 followers or so, and to wake up to 10,000?)

We’d have to write a whole new article to really go in depth about how to get famous on TikTok, but here are some of the tips writer Tom Haynes of TheTab.co.uk learned when he asked the biggest TikTokers on how to get famous:

  1. Post videos every day, even if they don’t reach many people.
  2. Pay attention to trends and capitalise on them.
  3. Be unique and show people something they haven’t seen before.
  4. Use the tools the app gives you, especially if they’re recent additions.
  5. Make sure your videos have to be rewatchable and shareable.
  6. You have to take risks – don’t be afraid to get weird.

So… to TikTok or not to TikTok?

TikTok gets a lot of hate because a lot of the videos that get posted are extremely cringey, but in all fairness, there are thousands of other really good videos on the app. And not all of them have to be entertaining too – at the end of the day, consumers are still hungry for information, so you can always do more than just a Renegade dance.

On a larger scale of things, the app itself is constantly evolving and incorporating more ways for users to engage… and from the lessons we’ve learned in the past, it’s never too early to learn how things work. If you can turn this into cash, it would be smart to hone your TikTok skills right now.

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#NewNormal: How Your Business Can Survive The COVID-19 Pandemic

  • By CompareHero.my
  • June 23, 2020

Business survival in times of crisis like the COVID-19 pandemic can be difficult for certain business sectors. If your business is affected, learn these practical business tips and strategies on how your business can survive in the new normal.


A growing number of businesses are reopening their doors to the public after almost two months of inactivity due the Movement Control Order (MCO), enforced by the government to contain COVID-19.

The impact of the pandemic is expected to be hard on the local private sector and industry, particularly on Micro and Small Medium Enterprises (SMEs) who are likely to be severely affected with less resources to absorb the shock, according to the World Bank. This poses a huge problem for the country’s economy as SMEs constitute about 98.5% of total businesses in the country.

The pandemic has shifted customer behavior, needs and demands, many of which businesses worldwide weren’t ready to fulfill. Businesses must now reinvent and adapt their product offerings and operations with test-and-learn business approaches, as consumers become more risk-averse.

Some other businesses, on the other hand, are merely trying to survive and recover. But it’s not all bleak –  some of the most successful businesses often emerge during downturns because behavioral changes during a pandemic could present a rare opportunity to provide meaningful services. For example, successful startups like Instagram, WhatsApp, Pinterest and Slack, were all founded during what was considered one of the worst economic downturn – the 2008 recession.

In order to thrive in the new normal, companies must balance between understanding and fulfilling their customers’ and employees’ emotional needs. Brands that can do this with ease will emerge as winners with increased customer and employee satisfaction and loyalty – two key ingredients to success. How brands treat their customers and employees in these trying times will have a lasting effect on their brand. We take a deeper look into these pointers below.

1. Rapidly embrace changes and be more flexible

COVID-19 has forced brands to rethink their brand positioning and values. (Image source: Ogilvy)

The success of a business in the new normal will be highly dependent on how agile and strategic they can be when dealing with novel challenges of the new normal.

Businesses whose livelihoods depend on in-person appointments or physical meetups, for example, must be flexible enough to consider adopting new ways of service in order to survive, or risk losing out on deals because customers aren’t able to meet them – in this case leaving home due to the quarantine.

To put it into real world context – psychology centres whose business models rely heavily on traditional walk-in or appointments may consider adopting telehealth or telemedicine as an alternative. This technology allows health-related services and information to be channelled to patients via electronic information and technology like via a computer or smartphone etc. Since services are administered remotely via the internet, it’s much safer, and perhaps even cheaper (minus gas from travelling).

Businesses that previously functioned on Standard Operating Procedures (SOPs) disallowed in today’s new normal, must quickly revise those SOPs to ensure it adheres to social distancing and strict hygiene.

To be able to adapt effectively and quickly, it’s crucial that businesses be nimble enough to pivot and adopt new approaches or business models. Businesses may have to do extra homework to be constantly updated on the latest insights on customer behavior.

2. Understand your customer’s shift in behavior

With social distancing and strict hygiene part of the norm in today’s society, the way we work, eat, play and socialize will be different from how we have been wired and accustomed to.

For many, work or school is now done virtually or remotely. This effectively changes the demands and needs of society as well. For instance, reliance on digital tools may increase, as the dependence on technology at home increases.

Before businesses can cater to different needs or demands in the market, they must first conduct market research or a corridor research to better understand the types of shifts in existing or potential customer’s behavior, needs, preferences, as well as discerning the factors influencing these changes.

Some good questions to ask when starting this process:

  • How has the customers’ needs changed, if any?
  • Why has it changed and what’s causing it?
  • How can we help customers address this change in needs?
  • Which part of our current service or products needs to be enhanced or completely revised to meet our customers’ needs?

It might be messy to just scribble these information on an empty note, so instead, consider using tools like a “value proposition canvas” or a “persona template” which are simple solutions to better understand your customers.

Conduct surveys or polls, or read on trends in social media to get a better gauge of current customer sentiment within the relevant industry. Businesses must always research and read on current trends to understand constantly shifting audience perceptions, while using this opportunity to showcase their businesses’ unique response or providing a solution to the gap in society’s needs.

According to Sinclair, a PR, social media, digital and experiential communications agency, current sentiment shows that customers’ behavior are more likely to be home-based. They are likely to reduce spending on non-essentials, especially luxury and lifestyle items as a way to cushion the economic impact of COVID-19; they are also looking for new ways to be entertained at home.

The same report advises brands to pivot to an increasingly homebound economy where healthcare, wellness, hygiene, FMCG and insurance are not only in high demand, but are the priority.

In another report, GroupM shares that consumer spending on crowd-dependent activities may lessen as less people will favour congregating as to avoid large crowds in enclosed spaces. Socializing, hobbies and interest, may now become home-based or more focused on smaller groups. So do away with large crowd events, instead utilize digital marketing to attract and target customers.

Companies that depended on physical cash payment solutions may need to evaluate other payment models that are safer and contactless seeing how social distancing is the new norm. Consumers are also more cautious about hygiene and cleanliness.

Similarly, brands that move or extend their businesses online will attract customers who may be turned off by the long queues caused by controlled access at physical retail shops; these folks are more likely to shift their behavior to online shopping.

The key takeaway for businesses is to align their products and offering with society’s changing needs, customer behavior, and constantly come up with strategic approaches to ensure that the business can adapt quickly and effectively.

Related: MCO Lockdown: 10 Tips To Get Back Your Customers For Malaysian Businesses During COVID-19 Pandemic

3. Tap on various financial aids

In an effort to cushion the economic blow of COVID-19 on Micro and Small and Medium-sized Enterprises (SMEs), various organizations from both public and private sectors are providing aids to help businesses sustain business operations, safeguard jobs and encourage domestic investments. If your business is in dire need of extra help, consider these options:

Bank Negara Malaysia

  • Special Relief Facility (SRF) – CLOSED
  • All Economic Sectors (AES) Facility – to enhance access to financing for SMEs and to support growth.
  • Agrofood Facility (AF) – to increase food production for Malaysia and for export purposes.
  • SME Automation and Digitalisation Facility (ADF) – to incentivise SMEs to automate processes and digitalise operations to improve productivity and efficiency.
  • Micro Enterprises Facility (MEF) – to increase access to collateral-free financing for micro enterprises.


Understand the complete features and full requirements of BNM’s aid for SMEs here. (Image source: BNM)

How to apply for the financing:

  • Call or email the participating financial institutions (PFIs) a.k.a. commercial banks, Islamic banks and development financial institutions regulated by BNM, to apply for the financing.
  • Look through the business financing referral platform at IMSME.COM.MY to apply for the financing.
  • SMEs may also avail themselves to Credit Guarantee Corporation Malaysia Berhad’s (CGC) BizMula-i and BizWanita-i schemes for financing of up to RM300,000. CGC.COM.MY

Click here for a whole suite of financing assistance for SMEs. (Image source: BNM)

The PENJANA Micros and SMEs E-commerce Campaign

The purpose of this scheme is to encourage adoption of e-commerce by micro enterprises and SMEs in order to widen their market reach as a way to weather the financial restraints caused by COVID-19.

Eligible micro enterprises and SMEs will be onboarded to shift their operations towards business digitalization through a co-funded programme with MDEC and e-commerce platforms. Fresh food producers such as farmers and fishermen are also encouraged to join the campaign.

Participating e-commerce platforms will provide the following to eligible micro enterprises and SMEs:

  • On-boarding training
  • Seller subsidy
  • Sales support

Participating agencies include Lazada, Shopee, Fave, Zalora among others.

CIMB’s COVID-19 Financial Relief Assistance Programme For SMEs

CIMB SME Banking has introduced a few relief measures to help businesses get back on track and ease their cash flow problems.

CIMB Digital Partners’ Relief Measures
SMEs can drive businesses online by accessing digital solutions from CIMB’s partners including Shopmatic, MondeB2B, Exbytes and Exabytes Digital.

Free e-commerce webinars with Shopmatic
Now you can learn to build your own store in 60 mins and start selling online. Click here.

Retail Digital Financial Relief Packages
Transform your business by going online within 3 days. Click here.

For a full list of assistance by CIMB, click here.

SME Corp also compiled a full list of measures by the government to help the SMEs to sustain their business operations. Click here to view.

Related: (UPDATED) COVID-19: Assistance and Special Relief Facility (SRF COVID-19) For Malaysia SMEs

4. Invest in digital technology and build meaningful digital experiences

Though COVID-19 hasn’t destroyed the brick and mortar industry, it has made visitations to physical stores an unpopular option due to the inconvenience (albeit necessary) contact tracing procedures which have caused long queues and delays. Consumers are also more likely to avoid physical stories out of caution because of the uncertainty surrounding the pandemic.

This will be particularly difficult for the retail sector, who because of their unessential status, may see fewer customers. During the MCO, Malaysian retail sales fell by 60.7% in April as non-essential stores were forced to close, while it’s estimated that retail sales for the full year will drop by 5.5%, according to Retail Group Malaysia, which calculates data on behalf of the Malaysia Retailers Association.

History shows that companies that invest in technology during or immediately following economic downturns may emerge stronger. (Image source: Bain & Company)

With uncertainty still surrounding COVID-19, especially with no vaccine in sight and with social distancing expected to continue in the remaining months, it’s clear that businesses must consider digitizing and getting on digital transformation in order for their business to survive. Now more than ever businesses must consider putting their money into digital technology if they are to stay relevant in the market, according to Bain & Company.

We share some great tips on how to digitize your business in this in-depth piece. But the gist of it is:

  • Set up a proper website
  • Tap on e-commerce store on platforms like Lazada and Shopee
  • Utilize social media platforms
  • Create a WhatsApp business account
  • Set up a simple e-payment system like iPay88 or PayPal
  • Create an automated response system on your website
  • Choose an e-wallet payment system to encourage contactless payment, like GrabPay or Boost
  • Engage a logistics service provider like Lalamove or J & T Express to deliver packages.

By the way, if you need any help with financing your business operations, it wouldn’t hurt to browse through some financing options available on our site to see which would suit your budget and limitations. You can browse them here.

Related: Ultimate Guide To E-Wallet In Malaysia 2020 – Which Should You Get?

Latest figures also show that the COVID-19 pandemic has resulted in e-commerce businesses booming globally as people shift their spending habits towards online platforms. There was a reported surge of 149% year-on-year Gross Merchandise Volume (GMV) growth in the first quarter since the MCO, according to the Commerce.Asia Group of Companies, an e-commerce ecosystem of technology and big data solutions.

The case for a more digitized economy is also supported by the fact that the Malaysian Communications and Multimedia Commission (MCMC) reported a 23.5% higher Internet traffic nationwide during the first week of the MCO, while the second week of the MCO saw a further increase of 8.6% as people continued to remain indoors during the MCO.

These trends may continue until the end of the year as consumers remain cautious about the pandemic.

If you need extra resources or help when setting up your digital business, try exploring MDEC’s #digitalvscovid campaign, where they collaborate with close to 80 Malaysian tech companies to offer services to SMEs on a pro-bono basis or discounted rates during this period of economic uncertainty.

5. Market your new product offering or business model

Effective and strategic online marketing can help brands reach their targeted audience with ease.

It’s important that brands invest as much energy and time into marketing and advertising their products, especially after all the hard work of adapting it to the new normal. Without robust and strategic marketing, the product or service wouldn’t be able to reach out to the right audience in the mass market.

But before you can market your product, you must first identify the right target audience. Only then can you come up with the right strategies and methods to engage with your customers. Below are some tips on knowing your customers we shared in this previous piece as well:

  • knowing how to angle your messages in a language that they understand,
  • knowing how to target your ads to the right audience, and
  • knowing how to give them what they need.

Here is another great resource to look into if you need more tips on identifying the right audience.

But knowing your audience is just the basics to marketing. Brands must also get the word out in compelling and relatable ways. Try tapping on various social media and digital channels or tools to help amplify your message.

Social media contests and giveaway contests are great ways to engage customers and build brand awareness. (Image source: HeyOrca, Social Media Examiner)

If you’re an owner of a restaurant who just launched a new delivery service, for example, you may want to promote this new service through a multi-channel campaign. This can include social media campaigns via Instagram, YouTube and Facebook, and also by sending out newsletters to inform and educate your customers about how your brand cares about customer health and safety by embracing new technology to empower the continuous practice of social distancing.

If your restaurant has always been offline, it’s time to bring it online. Utilize Instagram to market your dishes, couple this with resonating and compelling photo and content to make it relatable to readers.

Some basic smart tools to consider include:

Content Management Systems
This software application is used to publish and manage the creation and modification of digital content – a key tool if you want to create content digitally. But CMSs have more complex functionality that we won’t go into great detail here. We suggest checking this piece for a better understanding of CMSs.

WordPress
The most popular out of all the options out there, and the only one that we would recommend, WordPress boasts the largest market share among its competitors by far. It’s easy to use, and easily customizable via its plugins and themes.

Analytics
To help you understand and get to know your customers better, and what they do on your website. These smart tools can analyze data to provide better insight on customer behavior.

  • Hotjar
  • Google Analytics

Email Marketing
Got a brand new product that needs attention from customers? Well this is where email marketing comes into the picture. According to Neil Patel, email marketing technology is used by more than 80% of B2B and B2C companies.

MailChimp
With more than 12 million customers, it offers a free plan for those with less than 2,000 subscribers and those who don’t send more than 12,000 emails per month. Great for your SME!

Design UI/UX

Canva
Give your marketing collaterals a professional look with Canva. In fact Forbes recently reported that Canva had raised new funding valuing the startup at $6 billion after a huge increased in demand in design software.

There are more marketing tools that we won’t exhaust in detail here, but for more helpful marketing tools, click here.

The key messaging here is to constantly find other and new creative ways to meet and effectively connect with your customer’s changing needs.

6. Support your community

When a global tragedy strikes humanity, brands should demonstrate their support towards local causes and corporate social responsibility by being of service to their community.

Though businesses historically took a step back during crises, the roles are now reversing as businesses play more significant roles in society and stakeholder capitalism becomes mainstream.

The tradeoffs can even help businesses survive the pandemic. Sinclair shares that customers often respond well to positive messaging and encouragement from brands that offer support.

Therefore, it’s crucial that business leaders not only be proactive changemakers in their communities, but also continue to show support towards society as well as understand the needs of their employees, customers and key stakeholders, as part of their own brand management.

Brands can contribute by funding or donating money to supplies to support stakeholders. For example e-commerce giant Alibaba Group donated RMB1 billion (RM604 million) for purchasing medical supplies and equipment to donate to medical institutions in Wuhan and Hubei province.

7. Gather feedback from customers

The pandemic, especially in this period of recovery, will test how businesses react to customer sentiment and feedback particularly on social media platforms. Poor community engagement could make or break organizations.

Many negative experiences with customers actually come down to unfilled expectations.

To do this, businesses should closely monitor feedback or all forms of online mentions on all platforms: website, email, social etc. Your business’ success could depend on how well you meet your customers’ changing needs. Similar to the previous points, gather feedback via polls or surveys to ensure you are on top of your customers’ needs.

Businesses that listen and adjust their strategies based on customer feedback will improve customer satisfaction, and provide that extra touch of making them feel heard.

8. Care for employees


Great companies listen to what their employees have to say.

Things are hard right now as unemployment and pay cuts are on the rise. A brand will be judged and remembered for years to come based on how they treat and respond to their employees’ needs in these unprecedented times, according to Bain & Company.

It’s easy to be a leader when things are running smoothly, it’s much difficult to lead when things go south. How brands respond to employees will also have lasting impacts and will determine their engagement, loyalty and productivity – all of which are crucial for a business’ success, particularly in the new normal.

Employers should address fears in health and well-being, financial stability, and job security – things that are considered top concerns for employees right now – in meaningful ways.

For example, because of COVID-19, Microsoft was one of the first companies to commit to paying its campus staff during the work-from-home period, even if they don’t need to work

9. Provide access to the masses

Does your company have access to a heap of resources that could be helpful for your customers? Now is the perfect opportunity to open up previously locked subscriptions or features for free, especially as consumers find ways to make life at home easier or are trying to stay preoccupied.

LinkedIn Learning opened up their “Working From Home” content for free, while Microsoft is providing free Teams subscriptions for up to six months.

Closer to home, for example, to aid staff in government hospitals, police stations and healthcare’s first responders, glove maker Supermax – with logistical help from National Disaster Management Agency of Malaysia (Nadma) – distributed 1 million medical gloves.

It could be as simple as donating cookies to frontliners if you own a bakery. All gestures count, big or small, to the brand positioning of your business.

10. Be prepared for a potential second lockdown

God forbid we go through another round of lockdowns, but if it does happen, companies would, hopefully, be in better position to weather the storm and handle any form of emergency or crisis.

Besides the usual HR-obligated procedure of making sure the office is well-sanitized and readjusting the office to meet social distancing standards or providing employees with sanitizers and masks, companies will also need to relook into other factors like cash flow, headcounts, and redundancies if business survival is an issue.

It’s also important for businesses to address the need to integrate their staff with these lockdowns by providing them with enough resources to be able to perform their duties and tasks out of the office. Some companies even look into addressing employee mental health as the pandemic has undeniably caused a lot of stress and confusion especially as people’s livelihoods are affected.

Lastly, if another lockdown does happen, we hope your company has already embraced digitization as an alternative business approach. This on top of consolidating cash flow and making sure there’s enough savings to weather the storm until the end of the year.

Things may not be perfect, but they are definitely improving

The COVID-19 pandemic is an unprecedented event that no one saw coming – no business was ready to handle or absorb the shocks presented by the awful tragedy.

Right now, the best thing businesses can do now is to learn from the outcome of their past efforts, improve on their strategies, build resilience, and have faith in their people.

On the commercial end, they must listen to the changing needs and demands of their customers, and adapt to these changes quickly. Hopefully our insights will help you on your business’ journey to recovery.

Read More

#NewNormal: 7 Tips To Buy A House In Malaysia During COVID-19 Pandemic

  • By CompareHero.my
  • June 22, 2020

If you are planning to buy a house in Malaysia during the COVID-19 pandemic, there are a number of important factors you have to consider before making your decision. Here we’ve listed down 6 tips for you to prepare in advance, read more to find out.


Buying a house is a big investment – it can be one of the most complicated and stressful, yet rewarding financial decisions to make in life.

There are dozens of – if not more – factors to consider before sealing the deal, and undeniably, it can be overwhelming, particularly for first time buyers. And unfortunately, many of us are not taught how to navigate through the process of property ownership or property investment from young. Luckily, there are tons of information online to help homeseekers with their search.

Recently, CompareHero.my spoke to several experts and home seekers to examine whether purchasing a new property amid economic uncertainties is the right decision. The answer is yes but only if you have set your life and financial goals, own sufficient savings, and are aware of your target price. For a full in-depth analysis on what experts had to say about buying property in Malaysia post COVID-19, click here.

Before you commit to such a big ticket item, we’ve compiled a list of things you should do before getting property especially amid COVID-19. The list comprises everything from setting financial goals to unpacking incentives in the short-term National Economic Recovery Plan (PENJANA).

1. First things first, set proper financial goals

Before you decide on investing in property, you must first assess your financial standing to build up an honest picture of where you stand in monetary terms. Can you afford a house?

Set short-term, mid-term and long-term financial goals to get a better understanding of what you hope to achieve in the next few days, months or even years. Without financial goals, there’s nothing concrete to work towards, and may trigger negative habits like overspending or impulsive buying. Or worse, you stack up excessive debt due to insufficient funds for your home installment, bills, loans etc. Nobody wants to retire in debt.

These goals should be specific and have a timeline. Prioritize according to what’s urgent and important, and chart your progress as you go. If you get sidetracked, revisit and readjust your plans if necessary. Lastly, celebrate your small or big financial accomplishments!

A widely used method we found online is the SMART goal, which stands for Specific, Measurable, Achievable, Realistic, and Time-bound.

Example of a simple SMART financial plan:

> I would like to save RM100 every week in the month of June
> Identify the mechanics
> Save RM20 every week
> Take action
> Celebrate your achievement 

Download this helpful SMART goal worksheet by SmartAboutMoney as reference.


A financial worksheet helps you sort out financial goals better

Related: Money Management: 3 Ways to Control Your Finances

2. So you want a house, but what is it for?

Time to get a new house? Maybe your current house feels a bit too cramped with a new addition joining the family soon. 

After setting clear financial goals for yourself, then move on to setting clear goals for your property investment.

Think of what investing in property means, in both financial and personal terms, for you. Some questions to ask yourself: are you solely looking for a place to stay, or are you hoping to get returns from your investment? What is the purpose of this investment? What price range is within your budget?

When it comes to property investment, there’s a misconception that the rules are to just buy and wait until it multiples in value, then sell it off to earn that extra cash –  but it’s not really that simple. And not all property values that increase over time will make you a profit.

There are generally two different methods to earn profit from property, one being cash-on-cash investments and the other being return on investment (ROI). Not sure which method works for you? Calculate the returns for both scenarios using estimated property prices, then decide. We found some useful formulas on PropertyGuru to help with your planning.

“I always tell my clients, make sure that there’s a demand for the house if you’re not keen on staying there,” Jin Ooi, a team leader in real estate at Kith & Kin told CompareHero.my. “You really need to do a good amount of research and understand your areas of interest.”

If you’re buying for your own stay, the most important factor is that you love the environment it’s located in for the long-term. “Buying a house for yourself is more of an emotional purchase,” Jin added.

What’s your other option if you need a place to stay but can’t afford to buy your own house? Rent! We analyze the advantages and disadvantages to renting versus buying.

Is it cheaper to buy or to rent? Which is better?

There are many advantages to renting too

There is a misperception that buying is automatically the better choice if one can afford it, because you’re better off paying the bank than your landlord, and also because property is an asset that will grow your personal wealth over time.

But it’s equally important to consider the opportunity cost from renting. List down all the money needed if you were to buy a house: down payment, mortgage payments, valuation fees, legal cost, stamp duty, mortgage reducing term insurance, quit rent, property assessment tax, renovation costs, and maintenance fees. That’s a lot! For some, that money is better off into investments. Of course, the flipside for renters is that they could miss out on home equity when the value of a property increases.

Also consider external factors that affect overall cost such as appreciation rate, inflation rate and duration of stay when deciding which is the more cost effective choice.

To help compute these factors, check out this very useful Buy vs Rent calculator we found on EdgeProp that will show you how many years it takes to breakeven – where cost of buying equals cost of renting.

EdgeProp says if you stay in your home past the breakeven period, consider buying, but if you feel you’ll move sooner than that, renting might be a better option.

Next, do you have sufficient savings and an emergency fund after investing in property? If all your cash, including savings, is tied into your home, you’ll risk having to live paycheck after paycheck just to make ends meet, and this may get worse when you experience emergencies such as a car accident or health scare.

Don’t commit to a monthly mortgage if you know you can’t afford it, said both Jin and Dr Desmond Chong Kok Fei, deputy president of Malaysian Financial Planning Councils. Taking on a home loan without having enough financial muscle could affect your other financial obligations. According to Investopedia, your mortgage should not exceed 28% of your annual gross income.

Examine a house from all different aspects, not just the parts that are visible to the eye. Think about how it makes you feel? 

Other factors to consider after purchasing a home are the changes in your mobility and lifestyle. “Once you own a house, your whole lifestyle will change. You now have a commitment, which you’ll have to pay and it will affect your cash flow. Then you’ll also have to take care of that house, and maintenance is a big cost,” Chong told CompareHero.my.

If you don’t like being stuck at one place for a long period of time or are considering changing jobs or moving to a different area within the near future, it would be a more cost-effective choice to rent – unless you can get a tenant to come in and pay the rent for you.

Related: Using Social Media To Drive Up Your Property’s Rental

And unlike other investments, property value and returns require more time to grow, and selling too soon comes with the risk of it not growing in value. Homeowners are also accountable and responsible for any repair issues that occur in their homes, but as a tenant, your landlord will be able to handle it instead.

“For me, it’s better to buy an investment if you can afford it. But it really depends on the scenario and situation,” Jin said.

“I had a client who decided to rent a RM10 million bungalow after we looked at the interest rates and earnings and realized it was cheaper to pay RM20,000 for rental than pay RM45,000 in monthly loan mortgage,” he added. “He was able to enjoy the experience for something that is worth two times more. For his case, he was still able to stay at the house and didn’t have to worry about any loan commitments.”

3. Don’t dive deep into anything without a strategy!

Now that you’re somewhat sure of getting a property, it’s time to devise a plan to get there because all good businesses start out with a bulletproof plan. A solid plan is simple and can easily be committed to memory. It shouldn’t be complicated or unrealistic.

Here’s a simple plan you can try out:

  1. Figure out how much money you need to invest, or will continuously need for this property. Remember that cash is king, so make sure your cash flow is solid. The Malaysian credo, ‘No Money No Talk’ applies perfectly to this scenario. Before committing to any form of big-ticket investment, Jin said one should have done their budgeting to ensure they have sufficient cash to support such purchases.

  2. Iron out all the nitty gritty details. This includes things like researching home loans, types of homes, gathering down payment, checking your credit score, assessing your income and other financial obligations etc. “Get a banker to help you assess your loans,” Jin said. “This step is important because it examines your financial eligibility. If you can’t meet your down payment, then it’s best to save the money.”

    “To know how much loan you need from a bank, you can check your margin of finance which follows the debt-service ratio formula,” Chong said. “Think about your capacity and capability to pay because you could have a really good debt-service ratio, but are facing other issues due to COVID-19 like a pay cut for example, then that could affect your repayment,” he said.

    Related:     How do I calculate my Debt Service Ratio?

    By the way, having a good credit score is crucial when you need some help from banks or lenders for that extra moolah to buy a home. On top of having more options to choose from as more banks and lenders will prefer dealing with you, you’ll also get to leverage and negotiate for lower interest rates on a credit card or a loan. If you are curious about types of credit cards or loans out there, check out the extensive list on our website.

  3. Don’t spend too much on the installment. This is especially true if you have other financial obligations piling up. “Know your budget and stick to it. If your budget doesn’t allow you to get a new property then put it on hold and rent first. You don’t always have to buy if you can’t, said homeseeker and financial manager Eric Yong, 28, who spoke to CompareHero.

  4. Exhaust all other financial and non-financial factors. Factors like property location and type of property are especially important if you are looking for a property to reside in permanently.

Jot down all the requirements and resources you need to achieve the plans you’ve made. Have your family and friends give you feedback to see how you can improve on your plans.

Indecisiveness might hamper your plans to secure a property that you saw on sale

4. Be informed and do a reasonable amount of research

Go full on steroids when it comes to researching on properties. Read up on types of houses, the locations, how it fares in the market, information on the developers, etc.

Analyze the different developers and compare their product offerings and locations, said Chong. Ask yourself, “which offers the better deal, and why?”

Investing in a new property is similar to getting a new partner, you want to make sure you find out every possible detail there is to know about it before deciding whether it’s worth the investment, risk and effort.

Besiding getting information from newspapers and property websites, Jin also advised on engaging with a real estate agent who operates in your area of interest. “They are always in the market, so they know the local scene very well, and can give you hands-on analysis of the houses and the area you’re interested in. It will save you a lot of time,” he said.

For homeseeker and digital communications specialist Trini Ng, 31, Muday.my is her go-to website when it comes to property hunting. “I get to know the types of price ranges that are out there, and can plan my financial commitments,” she told CompareHero.my. “I don’t physically go around looking at houses, but I’ll consider going when I’m 90% sure.”

It’s time to start saving if you have aspirations of getting a house in the near future

Are you a first time buyer? There’s a list of various government initiatives to help first-time home buyers turn the dream of owning their own home into a reality. Here are a few government schemes to help first-time homeseekers start with their research:

A) The 1Malaysia People’s Housing Programme (PR1MA)
Interested applicants must be Malaysian citizens aged 21 or above with an individual or combined income (husband and wife) of between RM2,500–RM15,000  to be eligible to apply and own PR1MA homes. Additionally, applicants or their spouses must not own more than one property. To apply, you first need to register for an account with PR1MA on their website and then cast your ballot; if you’re successful you can then select your preferred financing option. PR1MA home owners are not allowed to sell their units within 5 years.

B) MYHOME scheme
This scheme provides a subsidy of RM30,000 for first time homeowners to buy a low or medium cost property. Applicants must be Malaysian citizens, 18 years old or above, be first time homebuyers with a salary of between RM3,000–RM6,000. Apply for the scheme online through the MyHome scheme website or you can also get the form at the Kementerian Perumahan dan Kerajaan Tempatan (KPKT) office in Putrajaya. The table below illustrates how the subsidization works:

MyHome1 (RM3,000-RM4,000 income)

 Market Price/Selling Price (RM)Actual Price (Paid by Purchaser RM)Minimum Floor Area (sqf)Monthly Household income (RM)
MyHome180,000-120,00050,000-90,0008003,000-4,000
MyHome1 Kuala Lumpur80,000-150,00050,000-120,0008003,000-4,000
MyHome1 Sabah & Sarawak90,000-120,00060,000-90,0008003,000-4,000


MyHome (RM4,001-RM6,000 income)

 Market Price/Selling Price (RM)Actual Price (Paid by Purchaser RM)Minimum Floor Area (sqf)Monthly Household income (RM)
MyHome2120,001-200,00090,001-170,0008504,001- 6,000
MyHome2 Kuala Lumpur150,001-300,000120,001-270,0008504,001- 6,000
MyHome2 Sabah & Sarawak120,001-200,00090,001-220,0008504,001- 6,000


C) My First Home Scheme
This scheme assists young adults who are salaried workers or self employed, with a gross income not exceeding RM5,000 a month or not more than RM10,000 (for joint applicants).

The financing tenure (amount of time you’re given to repay the home) must not exceed 35 years but is subject to the applicant’s age; applicants should not be over 70 years of age at the end of the financing tenure.

Additionally, the property value you’re planning to purchase needs to be between RM100,000–RM500,000. The scheme allows young adults to get up to 110% financing which means the lender is willing to cover the entirety of the mortgage without the initial 10% down payment. Applicants must choose from residential property for their own occupation (either under construction or a completed unit) from the primary or secondary market.

The scheme is for those working in the private sector and applications can be done at any participating banks. For a list of participating banks, check here.

Related: How To Buy Your First Home In Malaysia

D) BSN MyHome (Youth Housing Scheme)
This special scheme is for Malaysians aged between 21-­45 years old with a household income not exceeding RM10,000 per month.

BSN bank will provide a maximum 100% financing for properties within the price range of RM100,000-RM500,000 with a financing tenure up to 35 years. Applicants must be a BSN GIRO or GIRO­I account holder. Additionally, the government will also give 100% stamp duty exemption for the first RM300,000 on purchase (for property price up to RM500,000).

The government will also provide RM200 monthly aid for the first 2 years to ease the financial burden of buyers. But the scheme is only on a ‘first come first served’ basis as it is limited to 20,000 buyers or for 2 years, whichever comes first.

E) Rumahku Selangorku
Eligible applicants must be Malaysian citizens over 18 years of age who are residents of Selangor with a household income between RM3,000-RM10,000, and are looking for their first home. Only one applicant is allowed to apply per household.

Properties available range from low cost to medium cost not exceeding RM250,000, making it ideal for entry-­level homeowners as well as young working adults who are looking to own a house in Selangor. Applications can be made online at their website.

5.  Take advantage of the COVID-19 PENJANA stimulus package

The short-term National Economic Recovery Plan (PENJANA) includes various incentives to help spur the growth of the property market, and provide financial relief to home buyers.

The government is giving out tax exemptions for the purchase of properties through three different components:

Reintroduction of Home Ownership Campaign (HOC)

First introduced in 2019, the initiative aimed to support homeseekers secure houses, as well as encourage the sales of unsold properties in Malaysia’s housing market. Now it’s back till 2021,  with more financial incentives to entice potential property buyers.

  • Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (but subject to at least 10% discounts by the developer).
  • The exemption on the instrument of transfer is limited to the first RM1 million of the home price, while full stamp duty exemption is given to loan agreements effective for Sales and Purchase Agreements signed between June 1, 2020 to May 31, 2021.

Real Property Gains Tax exemption

  • For disposal of residential homes from June 1, 2020 to December 31, 2021 (But limited to the disposal of three units of residential homes per individual).

Lastly, the current 70% margin of financing limit applicable for third housing loans onwards for property valued at RM600,000 and above, will be uplifted during the period of the HOC but this is subject to internal risk management practices.

Premendran Pathmanathan, general manager of REA Group Asia, which owns and operates iProperty, told BFM Radio that the PENJANA property initiative will help motivate more buyers to purchase properties in the near future.

“The PENJANA is a timely initiative to help spur up the economy. It will motivate more people to move forward to purchase properties. If you look at the HOC-related items, there are a lot of perks for buyers,” he said. “This is going to be fantastic for developers. Recently I read an article where Mah Sing mentioned that in the last HOC (in 2019), about 60% of their stock was sold off.”

The benefits, however, appear to favour the primary market more than the subsale market, which according to Pathmanathan, represents about 70%-80% of the Malaysian market.

“We don’t see much benefits for buyers when it comes to subsale, maybe it’s the government’s way of clearing off oversupply of stock so that’s why there are more perks for the primary market,” he said. “Moving forward, I hope they’ll (the government) consider buyers for subsale markets as well,”

6. Don’t sit on your plans but… don’t rush into it either

After coming up with a plan and identifying your ideal property, it’s time to act quickly and get the ball rolling because you’ll never know how long a property will remain in the market.

“Of course buying property is not a cheap investment, and it will take some time to decide, but once the planning is done and dusted, and all factors have been considered etc., it’s important to act fast,” Jin said. “If the property is that good, someone else will be keen on it as well.”

“I’m not so sure”

“The plan isn’t extensive enough”

“I might like that other property better” 

Truth be told, you can plan until the cows come home, but you won’t earn a single sen from all the labour that goes into planning if you don’t get it moving.

At this stage, you should be applying for a loan, securing a banker and a lawyer etc. to help execute your plans, Chong said.

But… take it easy as well. Don’t splurge unnecessarily either, especially in today’s economy, said Jin. Though it’s important to act swiftly, it’s equally vital to make informed choices, one that considers all options and factors.

“Don’t be too aggressive in this market, unless you’re super rich,” Jin said. “If you’re just an ordinary person, earning average income or cukup makan, it’s better to be conservative. Remember, just because your friend is doing it, doesn’t mean you have to… Always ask why? Why is something considered a good investment?”

7. Work with a trusted real estate agent or company

A real estate agent could make or break a deal. Invest properly! 

Both Jin and Yong emphasized the importance of getting a trusted agent or specialist in the area to help analyze the local property scene when home searching.

“I think Google is generally helpful in this regard, it can help you weed out credible companies and agents,” said Yong.

“I would also get referrals from friends and family because they want the best for you. Maybe try to meet up with the agent, and assess them based on their service. In my experience, good agents will always focus on their service rather than trying to sell you a home,” he added.

Related: #NewNormal: Should You Buy A New Property After COVID-19? Here’s What The Experts Say

So, are you ready to buy a house?

Truth be told, no time is truly the right time. If you feel overwhelmed, break your plan down into smaller realistic goals that you can work on within the year. And most importantly, give yourself deadlines to ensure that you stay on track and are progressing as you envisioned.

Remember that your capability to secure a new home depends on your financial goals, your financial standing, the affordability, your motivation and the underlying circumstances.

We wish you all the best in your property hunting journey!

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Father’s Day 2020: 10 Ingenious Money Tips From Malaysian Dads

  • By CompareHero.my
  • June 19, 2020

Happy Father’s Day 2020! Celebrate Father’s Day (21 June) this year by learning these 10 awesome financial advice, lessons and tips we received from our local Malaysian dads that can be useful for you.


Apart from being a pillar of strength and stability, dads are also traditionally known for their loud belches, face-palming jokes, and their never-ending attempts to outsmart Waze in traffic jams. But all that aside, they also pass down lots of wisdom to help us avoid the same mistakes they made growing up.

Ask any dad around and they’ll tell you that their ultimate wish is for their family to live happy, healthy, and prosperous lives.

To celebrate Father’s Day 2020, we wanted to hear about some of the best financial lessons our Malaysian friends and readers learned from their dads. Here are 10 money saving tips from dads which we hope you’d find helpful in your own way:

1. “If you want to buy something that costs RM50, make sure you have RM100.” – Nicole N, 22, writer

Nicole tells us that her dad started his career with only RM30 in his pocket. After 20 years, he’s now an incredibly successful senior manager in one of the biggest FMCG companies in the country.

“He’s very financially savvy, and I definitely learned a lot from him,” she tells us. “He told me that if I want to buy something that costs RM50, I must first make sure that I have RM100.” Without having twice that amount in the bank, there were times when Nicole had no choice but to slowly save for big ticket purchases.

Not only does this reduce the chances of impulsive buying (which are often painful mistakes, let’s be honest), but this also makes sure that you live very conservatively within your means.

“I wanted to get the iPhone 8 when it first came out. Even though I had the money to buy it, I didn’t have enough money to save,” she tells us. “I held on to my father’s notion and continued to save… and now I bought the iPhone 11 Pro to upgrade my broken phone.”

2. “Eat the eggs, not the chicken.” – Kuhan V, 40, insurance trainer

Don’t worry, Mr Chicky. You’re safe today!

Okay, it’s not really about the chicken. While we all strive to save as much as we can, Kuhan’s dad told him to save with a very specific goal in mind: “He taught me to save enough money to the point where I can live off my interest.”

Well, let’s be real… unless you’re a millionaire with spending habits of a scrooge, this is going to be pretty impossible. That’s precisely why Kuhan, who already has his own insurance business, has a diverse portfolio of investments with varying risk levels to help him grow his money.

“I know that I won’t be able to get there in the next year, but at least I have a goal to work towards,” he adds. “My dad is comfortably retired and I want to be able to do the same in my golden years.”

3. “Invest in gold.” – Ryan N, 32, advertising client lead

Everyone wants to grow their money. While it may be tempting to go for high-interest investments, it’s important to think twice, thrice, frice (?!) before making any investment in this current economic situation.

Ryan tells us that his dad worked in banking his entire life before comfortably retiring a couple of years back. “During that time, he had dipped his hand in all sorts of investments – from stocks to property, copper to cryptocurrency,” he tells us. “However, from the very beginning of my working life, he told me to buy some gold and forget about it.”

Funnily enough, 10 years down the line, Ryan *did* actually forget that he bought some gold from a local bank. Needless to say, he was ecstatic when he checked its value at the start of the MCO. Gold is believed to be one of the safest types of investments, mainly because its value often increases during economic swings.

“Let’s just say, I’ll have enough to keep me afloat for a year if I were to lose my job at this time,” he tells us.

4. “Invest in yourself.” – Viktor Tey, 24, photographer

“My parents didn’t teach me, but sent me for a series of classes,” Viktor tells us. “I guess I had a better opportunity than them to learn.”

In what feels like a lesson in self-investing, Viktor tells us that his dad had a very varied career path. “He started as a civil engineer, then a salesman, then a motivational speaker, then to a salaried corporate job and a regional executive, before retiring to do business at 50,” he says. “He made a loss then, but went back to a salaried job. Now, he’s retired and is looking to teach Feng Shui and calligraphy.”

Viktor adds that his dad encouraged him to read and find ways to upskill himself, and most importantly, to be financially literate so that he can save himself from making costly mistakes. Apart from sending him for classes and courses, his dad also invested in Viktor’s photography company, Viktey Visuals, during its inception in 2018.

“He believed in me and also put money in my company when I started it two years ago. He always encouraged me to try,” Viktor adds. There were also times when his savings went down to zero and had to find ways to get by, but his dad injected some money to help him sustain his business. “He’s always given me advice on stuff like clients and agreements. I’m really glad to have him as a dad.”

5. “Pay off your bills and commitments within 60 minutes of getting your salary.” – Egi T, 31, fashion buyer

Egi tells us that her dad always warned her against delaying paying off her bills and commitments. “I used to think that he was very naggy, because he’d accuse me of procrastinating if I paid my bills ONE day after getting my salary,” she says. “He was so strict and kancheong, and it totally irritated me.”

As Egi moved out from her family home, she actually did fall into a bad habit of delaying her payments. “I stopped paying my PTPTN loan thinking that I could slip under the radar,” she admits. “But that actually bit me back when the immigration officer stopped me from flying out of the country. I almost ruined my own holiday trip to London.”

“See? I told you right?”

She tells us that she now follows through with what her dad says, and has made it part of her second nature. “The minute my salary is in, I force myself to open my banking app to clear all my payments,” she says. “Even if I’m out, I’ll still do it, even if I have to excuse myself to go to the toilet cubicle.”

Actually, the easiest way to go about this would be to automate all your payments. Paying off your bills and loans on time don’t just help you stay out of trouble – they actually help you keep your credit score healthy. Missing payments to something as small like your electricity and water bill can actually destroy your credit score! Read this to learn if you’ve been sabotaging your own credit score unknowingly.

6. “Be diligent in comparing FD rates.” – Kelly L, 25, special ed teacher

If you have a Fixed Deposit account, chances are you’re just leaving it there to slowly grow until the day you actually need to make a withdrawal.

But as for Kelly, comparing and checking FD rates is something that dad actively does. (Actually, both parents – not just her dad.) “When I was young and whenever an FD account would reach full term, my parents would bring me to the bank,” she tells us. “We’d withdraw and use that money as fresh funds for another FD account with higher rates.”

She adds that they also have consultants in different banks to let them know if they have higher rates. While the latest reduction in the OPR rate has affected FD interest rates, the best they can do is to be patient to see how things develop after the MCO.

7. “Diversify your income. Don’t just rely on your monthly paycheck.” – Anis S, 25, writer

If you’re still living paycheck to paycheck, now would be a good time to consider how you can have various other sources of income. Plus, if you ever get retrenched in this economy… okay, let’s not go there. *touches wood*

Growing up with parents who are professionals, Anis was taught very early on to have multiple income sources instead of relying on a monthly paycheck. “Apart from my day job as a writer, I also have other forms of passive income and savings plans, such as Amanah Saham and a private retirement scheme,” she tells us. “I also do some freelance writing on the side.”

Anis adds that her father, a retiree who used to work in palm oil, is still busy finding clever ways to grow his money. “Among others, he also invests in bitcoin and unit trusts,” she says.

“In fact, he’s also getting my sisters and I to join him in a potential new business venture – a 24-hours laundromat!”

Read also: 50 Low-cost business franchises in Malaysia you can join right now 

8. “Never carry a balance on your credit card.” – Subashini M, 27, home baker

Credit cards are extremely convenient and rewarding to use (credit card with 15% cashback – say what?!), but it’s easy to fall into the debt trap. Subashini tells us that her dad was very strict on her credit card usage, and would always tell her to clear her monthly owings and never to carry over a single cent.

“My dad’s a typical dad – he would always tell me to live within my means and to save instead of spending unnecessarily,” she tells us. “He nags quite a lot, so over time I just took his words for granted.”

It wasn’t long before Subashini found herself paying additional fees simply because she avoided checking her credit card statements. “I know it’s illogical, but I just couldn’t look at the statement,” she says. “They just stressed me out.”

As credit card interest rates can be pretty high (think 15%), it didn’t take her long to double her owings to the bank. “Yes, it’s convenient to have a card, but I think a lot of youngsters take credit card debt very lightly,” she tells us. “It’s easy to lose track, and when you do, that’s when you’ll learn a very valuable lesson in money management.”

Read also: Credit Card Tips from a Credit Card Junkie 

9. “Prioritise your family first and put your needs second.” – Faheem N, 30, graphic designer

When it comes to supporting a family, there’s a lot that can be learned from our own dads. Faheem grew up in a family of 6, and one of the things he learned from his late father was to always put the needs of his family before his own.

“Even though I was much younger back then, I remember that our family could manage our finances as my dad saved a lot,” Faheem tells us. “It was rare for us to see him spend on himself. All the money would go to the family, the house, our family holidays, our savings – so on and so forth.”

Faheem, who is now married with a kid, practices this same lesson. “As a dad, I mostly focus on my wife and my daughter’s needs and put mine second,” he says. This helps him ensure that his family is well taken care of. “It also feels almost therapeutic for me to see my family’s happy faces,” he says.

He adds that he has his own special way of treating himself: “I like collecting coins and have been doing so for years. After a year, I will use the total amount to buy something for myself.”

10. “Have debt? Pay off the ones with the highest interest rate first.” – Arif M, 26, freelance web developer

Growing up in a household with multiple debts, Arif shares that money was never his father’s forte. “Granted we weren’t drowning in debt, but my dad did take up some loans here and there to sustain his business and our family of 7,” he says.

To strategise his debt management, his dad prioritised paying off loans that came with the highest interest rates. “He would still pay off the other loans as much as he could, but he would allocate more money to pay off the most critical loans,” Arif adds.

It’s easy for debt to snowball, as rates are compounded over time. Thankfully, there are a few ways to manage debt fast, such as taking on a debt consolidation loan.

Okay, hold up. We know what you’re thinking. It may seem counterintuitive to get another loan to pay off your loans, but debt consolidation loans simplify this mess by combining all your debt into one. Think of it as a bank buying all your existing debt from other creditors, and in exchange, you repay that total amount – with a single interest rate – to only one bank. Not only is this a lot easier to manage, but it can even save you money in the long run if one of your debts has a higher interest rate.

Read also: 7 Strategies To Get Out Of Debt Fast During The COVID-19 Pandemic

Well, dad’s a lot of money tips!

While we couldn’t publish everyone’s responses, we’d like to thank all our friends and readers (and their dads… thanks, uncles!) for taking the time to share with us these little nuggets of wisdom. We hope they help you get smart with your money!

Now, we’d usually end our articles by reminding you to be responsible about your finances and all, but we’ll do it differently today…

… with some bad dad jokes you’d hate to love:

  • Why is money called dough? Because we all knead it!
  • I saw a sign that said “Watch for children,” and I said, “That sounds like a fair trade.”
  • Why did the man put his money in the freezer? He wanted cold, hard cash!
  • What type of investment do Wall Street traders call a “007”? A bond.
  • Never lend money to a friend. It’s dangerous. It could damage his memory.
  • What do you get if you cross a sorceress with a millionaire? A very witch person.

If you still have your dad around, go on and give him a hug (or a back pat, if you’re too awkward for hugs). If your dad isn’t around anymore, we hope this brought back some sweet memories of your time with him… even if it includes those of his embarrassingly loud sneezes and goofy laughs.

From all of us at CompareHero.my, Happy Father’s Day! ❤️

Related: Money Lessons I Learned From My Dad

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