Credit Card Application Rejected? 10 Tips To Get Approved For Your Next Credit Card Application
- By CompareHero.my
- June 18, 2020
If you’ve applied for a credit card before and got rejected, there are a number of possible reasons why this rejection happened. It’s time to prep yourself with these 10 tips so that you can get approved for your next credit card application easily.
You may have been affected by the Covid-19 pandemic and are in need of some cash flexibility the moment. Getting a credit card may be one of the strategies you have in mind to help you weather through this financial storm.
On the other hand, you could just be looking for another credit card to complement your spending style. Credit cards, after all, do come with plenty of benefits to help you get more value for your money.
Whatever the reason is, you may have landed on this page because you’ve recently had your credit card application rejected, and are puzzled as to why this has happened to you. While you can always call the bank up to check, there are times where you’re left with vague answers that don’t quite explain much.
To help you improve your chances of getting your next credit card approved, we’ll look into some of the reasons why your credit application got rejected and some potential solutions to help you out.
Contents
- 10 Tips On How To Get Approved For Your Next Credit Card Application
- 1. Wait before you apply for another card
- 2. Wait till your credit score improves first
- 3. Pay your bills consistently for at least 6 months
- 4. Settle your current credit card debt first
- 5. Lower your debt-to-income ratio
- 6. Find a more suitable card for your credentials
- 7. Try applying from a bank with your savings account
- 8. Preempt your HR about your application
- 9. Try a non-bank financing institution
- 10. Work for a longer period of time
- Credit cards are a huge responsibility
10 Tips On How To Get Approved For Your Next Credit Card Application
1. Wait before you apply for another card
Why does your credit card application keep getting rejected one after another? It’s possible that your credit card application got rejected because you had recently applied for another card in a short period of time.
You may ask – does credit card application rejection affect your credit score? Not really, but banks looking at your credit report may be able to see that you’ve applied for financial help elsewhere recently. This may influence their decision-making process.
“Why is this person trying to borrow money here and there?”
“It hasn’t even been a week and this person is trying to apply for another card?”
Applying in a flurry will just make you look less creditworthy. If you get rejected, give your credit card application a break – think about six months at least – before trying to apply for another card. Applying when your records are cleared up can increase your chances of getting it approved.
2. Wait till your credit score improves first
There’s a very high chance that you were rejected because of an unhealthy credit score. Having a low credit score is a red flag on your end, as one of the very first things banks do is to check your credit score before deciding whether to help you out or not.
Your credit score is, very simply, a number between 300-850 which represents your creditworthiness and how likely you are to repay debt. These are the three most important digits of your life. The higher the score, the higher your chances of getting financing requests approved. There are a few ways to improve your credit score, which we’ll cover in the following points.
Read also: Ultimate Guide To Credit Scores
3. Pay your bills consistently for at least 6 months
One of the ways you bring down your credit score is by being inconsistent and late with your payments. This isn’t just about credit card bills – this includes ALL kinds of bills, like your utilities, internet, and phone bills. While we don’t exactly have the complete, exhaustive list of bills that would affect your credit score, just play it safe and pay all your monthly bills as soon as you get them.
Repay your financial commitments for at least six months (the longer the better, of course), and apply for your credit card again. Regardless, even if you’re not applying for any financial help, you should still make your bill payments on time. Try to find ways to automate your payments so that you’ll never be late again.
This also applies to your monthly loan instalments – it could be your hire purchase or your mortgage, or that personal loan you took out a couple months ago. Don’t miss a single payment, and you’ll eventually start to see your credit score improving.
4. Settle your current credit card debt first
If you have too many credit cards that are maxed out, it would be obvious that banks wouldn’t want to lend you any more money. It’s almost guaranteed that you would have your credit card application rejected.
We read from The Balance that keeping your credit usage to 30% of your total credit limit would be best for your credit score, so work towards paying off your current balance first before you apply for a new credit card.
5. Lower your debt-to-income ratio
Ever heard of the saying, don’t bite off more than you can chew? In this case, don’t borrow more than you can repay. This applies to debt of every fashion, including but not limited to your car loan, personal loan, and mortgage.
Financial institutions will look at your income and total current monthly debt before saying yes or no to you. Higher ratios will make you look risky as you may not be able to afford paying off your credit.
6. Find a more suitable card for your credentials
If you were turned down for applying for a high end credit card, you may have to first look at whether your credentials (e.g. annual income) meet the bank’s minimum requirements.
There’s a chance that you could’ve also maxed out the number of credit cards that you can apply. In 2011, Bank Negara introduced a guideline which states that those with an annual income of RM36,00 or less (RM3,000 monthly) can only hold credit cards from a maximum of 2 issuers.
It’s also important that you apply for a card that is suitable for you. When you get rejected, it’ll be reflected in your credit score history, and may lead to further turndowns even if you do fit the bill in your next credit card application.
Start with browsing the different types of credit cards that suit your preferences first (cashback, rewards, Islamic, etc.), and then narrow down to the requirements according to what you can meet. Easily browse and compare them here.
Read also: Quiz: What’s Your Credit Card Type?
7. Try applying from a bank with your savings account
As banks want to always see your credit history first, it would be a good idea to try getting a credit card from the existing bank where you have your savings/current account. Keep a good amount of money there, and maintain the account for a few months to a few years. It will make it easier for the bank to trust you when you come to them for financing help.
8. Preempt your HR about your application
We’ve also heard of cases where applicants get their applications denied simply because their company’s HR did not pick up the calls from the bank. These calls are usually made to verify the applicant’s employment status as it’s very common for people to lie in their applications. EPF statements are easy to tamper with when you have basic Photoshop skills.
In these cases, it would be a good idea to preempt your HR department about your plan to apply for a credit card. Don’t be shy to seek their help – chances are, you will not be the first one to do so.
9. Try a non-bank financing institution
If you’re finding it hard to get a bank to lend you a card, try your hand at a non-bank financing institution. While we don’t exactly have hard facts to back this up, we’ve read stories of applicants who have managed to easily attain a credit card from a non-bank institution.
10. Work for a longer period of time
When it comes to any form of financing, banks will always have a requirement to lend to people with stable monthly incomes. If you’ve just started your new job, try to work for a little bit longer before you apply.
Although the standard requirement to show proof of income is a 3-months payslip, there may be times when banks would want to see more than that, like your EPF statement. Banks love consistency, so keep this up and they will be more likely to say yes to you.
On that note, when sending in your application, make sure that each detail included is filled correctly. Make sure you have all the required documents attached, especially your payslips.
Banks typically want your latest 3-months’ payslips, so if by any chance you skipped one month because you accidentally threw it out, you’re almost guaranteed to have your application rejected. In cases like this, ask your HR department to reprint your latest payslip to help you out.
Credit cards are a huge responsibility
At the end of the day, if you get rejected, most times it’s because banks see you as a risky borrower. Credit cards are a huge responsibility, and it’s easy to fall into debt if you don’t manage your cards wisely. If you ever fall into debt, it will be a long and arduous process to get out of it.
If you do get your application approved, it’s on you to maintain your card with good money management practices. You can always start with these key tips:
- Pay your credit card bills on time. Avoid hefty 15% charged interest rates on your outstanding balances which can snowball in no time.
- Make a budget for your credit card spending. Don’t succumb to buying above your repaying capabilities.
- Be aware of your outstanding debt. Always check your statements to keep track of your spending and to spot any errors.
- Keep your credit utilisation to a minimum. Try to keep your utilisation limit to 30% to always be in the safe zone.
- Be financially literate. Don’t wait to learn from your own mistakes – learn from others by reading up on best practices and apply them in your life.
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#NewNormal: What To Do Immediately After Getting Retrenched Post COVID-19
- By CompareHero.my
- June 17, 2020
Many companies had to retrench and lay off their employees ever since the MCO took place. COVID-19 has caused Malaysians to lose their jobs and suffer from job loss during a pandemic. If you are one of them, we’ve listed some practical ways on how you can cope and deal with retrenchment.
The COVID-19 pandemic has affected the livelihood of thousands across the country. Some have lost their jobs, others face unpaid leave and pay cuts.
The effects of the virus and the Movement Control Order (MCO) are proving to be far worse than past crises like the 2008-2009 financial crisis. As of June 2, a total of 12.7 million Malaysians are unemployed. The figure is expected to climb up to 2 million people according to Malaysian Employers Federation executive director Datuk Shamsuddin Bardan.
Retrenchment and unexpected loss of income can cause a great deal of financial and emotional stress. In fact, research has shown that job and financial loss can increase a person’s risk of health problems such as anxiety and depression.
Here are practical steps that you should immediately take after getting retrenched so you can take control of your situation and manage your emotions proactively.
Contents
- 1. Take a deep breath and try to calm down
- 2. Go over your financial commitments
- 3. Check your retrenchment benefits (a.k.a. severance pay)
- 4. Claim your unemployment benefits
- 5. Claim all relevant government assistance due to COVID-19
- 6. Make your money work for you
- 7. Check on your family to see if they are okay
- 8. Continue nursing yourself
- 9. Take a break, but stay occupied
- 10. Upskill yourself and go all-out in your job hunt
- It’s okay to feel crappy sometimes, but don’t worry – you’ve got this
1. Take a deep breath and try to calm down
Realize that it’s normal to experience a range of emotions like shock, distress, anger, worthlessness, helplessness and guilt once you receive the bad news. Try to calm yourself down and take a deep breath. Scan your body to detect any tensions in the muscle. Know that it’s normal to experience symptoms like appetite loss, headache, mood swings, and frustration.
Everybody has their own set of coping mechanisms like crying it out or beating up a pillow – so do what you must to calm yourself down. If you are still experiencing these same symptoms over a period of time, and they’re impacting your life, try to seek professional help because you could be at risk of developing depression or anxiety.
The Befrienders KL is a good source if you need someone to talk to, particularly about difficult life problems like losing a job or source of income; their hotline is 03-76272929.
Before you can focus on positive intentions and regain control of your job search, you must first learn to manage your stress and difficult emotions. This free emotional intelligence toolkit by HelpGuide can be useful for those who need a more detailed guide.
2. Go over your financial commitments
Knowing how to manage your money well is key to achieving financial freedom
When a problem arises or an issue unfolds, it’s human nature to blame and try to fix what is out of our control. While you have little power to change the state of the economy or the COVID-19 pandemic, you can try to gain control of your finances.
To get a full picture of how much money you need within the next few months to one year, identify, categorize, and list down all your financial commitments.
Then gather a paper trail of all your financial statements. These documents reflect your monthly income and expenses, including your bank and credit card or electronic payments, especially because they may vary in regularity. This is helpful for those who don’t keep track or jot down expenses.
Now that you have all your financial statements and other important documents, you can accurately and confidently calculate and list all your financial expenses which may include things like mortgage or rent, car loan, utility bills, student loan, pending healthcare bills and prescription, digital subscriptions, gym memberships, insurance, groceries etc.
Once all that information is complete then start drawing up a budget. A budget helps you keep track of how much money you have coming in, or lack thereof, and how much money you’ll need to cover costs or have spent while you’re going through unemployment.
It’s a useful tool to help you not only manage your finances better, but also plan your financial future. It allows you to stretch your ringgit by getting the most out of your money.
There’s no one size fits all solution when it comes to budgeting. Some prefer to use a budget app or writing it out in a notebook, others fancy a budget calculator or a budget spreadsheet (like below) which can be downloaded here.
A budget worksheet can help sort out expenses in a more systematic way. (Image source: Incharge.org)
All in all, a budget really helps you get a bird’s eye view of all the different financial commitments you need to be accountable for in the next few months to a year while trying to secure another job. )
Contact your bank to see if you can make any changes to your loan repayments. In this instance, take advantage of the moratorium on loan repayments announced by the Malaysian government, where all banks will be offering postponement on loan and financing repayments for 6 months, starting on April 1 onwards. What is a moratorium? To put it simply, you can delay your monthly loan repayments till the end of September this year.
Does moratorium cover credit card payments?
Unfortunately, no. But credit card balances can be converted into a term loan of up to 3 years of not more than 13% per annum.
This works by converting your unpaid balances into 36 monthly instalments of a lower interest rate, and you must pay the instalment in full every month once the deferment period ends. Accrual of interest still applies.
All cardholders regardless of their income level are eligible to participate in this conversion package any time starting April 1 till the end of December this year. But your account should not be in arrears for more than 90 days as of April 1, 2020.
Credit cards also provide great help in emergency situations, but must be managed wisely. Besides paying on time and cutting expenditures to settle card payment, here is an ultimate guide on how to use credit cards responsibly. You can also consider browsing through some of the credit cards available on CompareHero.my here.
Additionally, through the Prihatin Rakyat Economic Stimulus Package 2020, the government has granted a deferment of family insurance and takaful premium or contribution payments for 3 months for affected individuals.
3. Check your retrenchment benefits (a.k.a. severance pay)
A severance package may help sustain your livelihood for the next few months
Find out if you are entitled to any termination benefits after getting retrenched. The law requires that employers provide benefits according to the relevant provisions in Employment (Termination and Lay-off Benefits) Regulations 1990.
But these provisions are only applicable to employees covered by Employment Act 1955 (EA). These folks include:
1. Employees whose salary don’t exceed RM2,000 a month
2. But if their salary does exceed RM2,000:
- Engaged in manual labour.
- Engaged in the operation or maintenance of any mechanically propelled vehicle operated.
- Supervised or overseed other employees engaged in manual labour.
- Engaged in any capacity in any vessel registered in Malaysia.
- Engaged as a domestic servant.
According to Munhoe & Mar Advocates and Solicitor, any employee falling outside the scope of the EA will not be expressly entitled to payment of termination benefits, unless stated otherwise in their contract or in any other collective agreement. But in practice, termination payments are often made to such employees in redundancy situations to safeguard employers from the risks of a claim of dismissal ‘without just cause and excuse.’
The termination payable depends on the employees’ years of service as below, or as stipulated in the contract:
| Length Of Service | Termination Benefits |
| Less than 2 years | 10 days’ wages for every year of service |
| 2 years or more, but less than 5 years | 15 days’ wages for every year of service |
| 5 years or more | 20 days’ wages for every year of service |
In other cases, you might be entitled to a lump sum payment upon the termination of your employment as compensation for loss of employment, according to the Inland Revenue Board Malaysia (LHDN).
This payment is done in accordance with the terms and conditions of the contract of service and is described as compensation for loss of employment, retrenchment payments, ex-gratia, contractual payment, gratuity, etc.
The big lesson here is to go through your employment agreement or contract and, if possible, get your company’s HR’s to identify the benefits you’re entitled to for being retrenched.
On top of all of this, you’ll also get partial or full tax exemption from the compensation you received. For services on July 1, 2008 onward, RM10,000 is given for each completed year of service as long as employment is with the same employer or with companies in the same group.
Prior to July 1, 2008, the amount of exemption was:
(i) RM6,000 for the years of assessment 2003 to 2008
(ii) RM4,000 for the years of assessment 1987 to 2002
(iii) RM2,000 for the year of assessment 1986 and prior years
4. Claim your unemployment benefits
Dismissal due to misconduct, retirement, and voluntary resignation are not considered Loss of Employment (LOE), and therefore not eligible to claim benefits under EIS.
Thankfully most private employees get to claim unemployment benefits during the period of which they are unemployed.
Under the Employment Insurance System (EIS) Act 2017 administered by the Social Security Organisation (SOCSO), temporary assistance for up to six months is provided to employees who have lost their employment or have experienced some form of loss of income.
How it works is both your employer and yourself would contribute 0.2% of your salary to the scheme (total 0.4% monthly). Like most programs, there are several conditions and rules pertaining to this insurance. For starters, you can claim 80% of your assumed salary for your first month. You can read more in this in-depth piece we wrote on the EIS.
But here’s a list of the wide range of benefits under this insurance:
- Job Search Allowance (JSA) – If you’re eligible, you’ll be able to claim your allowance for up to 6 months.
- Reduced Income Allowance (RIA) – for those with multiple jobs, but lost at least one of them. Payment rates and duration of payment is the same as JSA.
- Training Fee – paid-for vocational training of up to six months.
- Training Allowance – incentives for you to attend and finish your training.
- Early Re-Employment Allowance – for JSA recipients to get back into the workforce.
- Re-Employment Placement Programme – job search assisted by SOCSO.
- Career counselling – job search assisted by SOCSO.
Just remember that you have to do this as soon as possible. To be eligible, you have to start applying within 60 days after your retrenchment.
5. Claim all relevant government assistance due to COVID-19
The Malaysian government introduced the Prihatin Rakyat Economic Stimulus Package 2020 in an effort to preserve the welfare and well-being of Malaysians.
See if you are eligible for any of the benefits below to help cushion the blow of losing a job.
A. Bantuan Prihatin Nasional
- RM1,600 for households with monthly income RM4,000 and below
- RM1,000 for households with monthly income of more than RM4,000 up to RM8,000
- RM800 for single individuals aged 21 years old and and above with monthly income RM2,000 and below
- RM500 for single individuals aged 21 years old and above with monthly income more than RM2,000 up to RM4,000 per month
B. Private Retirement Scheme (PRS)
Allows early withdrawal of up to RM1,500 from Private Retirement Scheme account B without tax penalty from April to December 2020
C. Exemptions on Housing and Business Premise Rentals
- Extend exemption of PPR rental to 6 months for 3,636 PPR houses under KPKT
- Deferment of 6 months rental for 4,649 units of rent to own houses (RTO) under KPKT
- Exemption of 6 months rental for 40,000 public housing tenants under DBKL
D. Electricity Bill Discounts
For domestic customers in Peninsular Malaysia, tiered discounts for electricity consumption beginning April 1, 2020 until September 30, 2020:
- 50% discount for monthly bill of RM43.60 and below (0-200kWh per month) benefitting 3 million (or 40.1%) domestic customers
- 25% discount for monthly bill of RM43.70 to RM77 (201-300kWh per month) benefitting 1.5 million (or 19.8%) domestic customers
- 15% discount for monthly bill of RM77.10 to RM231.80 (301-600kWh per month) benefitting 2.2 million (or 29.3%) domestic customers
- 2% discount for monthly bill of RM231.90 and above (> 600kWh per month) benefitting 0.8 million (or 10.8%) domestic customers
E. Telecommunication Services Incentives
Free internet to all customers throughout the MCO period beginning April 1, 2020
F. Cash assistance for E-Hailing Drivers
A one-off cash assistance of RM500 to full-time e-hailing drivers
Employee Provident Fund (EPF)
As part of the i-Lestari Account 2 Withdrawal Scheme, you can now withdraw up to RM500 every month from your EPF Account 2, starting 1 April 2020. All EPF contributors must be below 55 years old to be eligible.
6. Make your money work for you
Get the most out of your money when you use it wisely
Now that you’ve identified all the different ways to claim your termination benefits, next is to figure out how to really optimize it. Without a doubt, a large chunk of your money should go into paying off large debts and other expenses, as well as to sustain daily finances, but if you have extra, you can consider using it for investments.
Some types of investments to consider:
- Amanah Saham Bumiputera (for bumis)
- Unit Trust
- Fixed Deposit (FD)
- Investment-linked Insurance Plan (ILP)
- Real Estate Investment Trust (REITs)
- Exchange Traded Funds (ETFs)
- Exchange Traded Bonds and Sukuk (ETBS)
Here are some quick tips from us when it comes to investing:
Don’t invest all your money into just one investment
Don’t put all your eggs into one basket because you stand a chance to lose all your hard-earned money if the investment doesn’t turn out good.
Diverse your investments
Build a portfolio consisting of low, middle and high-risk investments. Example: REITs, overseas fund unit trust, and small-cap stocks, etc.
Make an informed decision
Always do your research before investing your money. Find out what type of investments work for you and why. Remember to only invest in a business, stock or industry that you are confident with or have knowledge about.
Related: How To Invest RM10,000 & Grow Your Money To RM100,000 In Malaysia
7. Check on your family to see if they are okay
Our best support system is our family
While self-care is crucial after getting retrenched, it’s also important to check on your immediate family who may also be affected by this unfortunate event. A difficult event like retrenchment can increase the pressure and tension in the family.
Discuss the impact of the situation with your partner and find ways to address it in a healthy manner together. If your partner is also a working professional, you may need to discuss the possibility of relying on them financially while you look for a job.
On the contrary, if your partner is not able to bring in sufficient income, then you’ll need to discuss how to bring in the funds together. You may need to rely on each other’s savings for an extended period of time or in the worst case scenario, get help from each other’s family members.
Some parents choose to explain the situation to their children for transparency, some others choose not to. But either way, it’s important to not scare them when managing such a distressing event. Try to maintain as much normalcy as you can by continuing to engage in enjoyable activities with your children. Do note that reduction in spending may affect your child’s other activities like musical classes etc.
If you’re single and living with your parents, talk about financial expectations in your household now that you are unemployed.
8. Continue nursing yourself
It’s tempting to lose yourself when faced with a difficult situation like retrenchment. But try hard to take care of yourself by ensuring all your other needs are met. Take this time to start eating healthily and getting some regular exercise going. Research shows exercise can help elevate our moods.
Avoid substances like alcohol or cigarettes during these difficult times. Some may tempt to ‘self-medicate’ or use it as a temporary escape from reality, but it will only worsen your emotional state and increase your risk of developing depression. They don’t come cheap either and could further create a hole in your pocket.
It’s also important to get emotional support in these difficult times, one way to do this is by talking to family and friends to help you remain positive. If you can afford it, get professional help from a therapist. Undeniably talk therapy at private centres may be costly, so an alternative is to get medication from public health institutions.
9. Take a break, but stay occupied
Spend more time working on your emotional and mental state. Is there a book that you really wanted to finish that you never got to? Now’s the perfect time to do that. Maybe there’s a side project or volunteer activity you really wanted to engage with, dedicate your time to that cause. It’s important to find the right balance between rest and keeping occupied with activities that are good for the mind and body.
In the meantime, look out for side jobs, part-time gigs and freelance work to help sustain your livelihood. Jobs like freelancing, online tutoring, delivery jobs, dropshipping, small online businesses, among others, can help pay the bills.
Related: 8 Side Jobs for Malaysians to Earn Extra Money During CMCO
10. Upskill yourself and go all-out in your job hunt
After settling all the financial matters and letting yourself process your emotions, it’s time to get back into the game. Perhaps you’re interested in trying out a different industry or want to make a jump in your career. Take some time to mull over your next career move.
Go all out: make sure your CV and LinkedIn page is up-to-date, and let recruiters know that you are on the lookout for new opportunities. Apply for as many relevant opportunities that come your way, but remember to be strategic about it as well. Take this opportunity to upskill yourself by taking online courses and webinars to keep abreast of the latest knowledge and skills in the industry. Research on what skills the industry needs, and learn them so that you can stand out from the crowd.
Optimize your use of other social media platforms such as Facebook, Instagram, and Twitter because employers usually post job postings there as well. One guy we spoke to got his job off of LinkedIn after a connection from his current employer approached him.
It’s okay to feel crappy sometimes, but don’t worry – you’ve got this
Losing a job is never easy, especially during these difficult times. But don’t expect to feel okay or have all the answers on the first day, or even weeks after finding out you got retrenched. Remind yourself that it’s okay to feel insecure about the future.
Practice a lot of patience and self-compassion. All forms of loss whether it be the death of a loved one, loss of a relationship and a loss of a job, takes time to process and recover. Don’t beat yourself for feeling overwhelmed at first. Find solace and strength in the fact that this too shall pass just like other difficult moments that you’ve overcome in life.
Realize you are not alone in this struggle and that there are other people out there who are experiencing a similar situation.
Despite how gloomy the situation might be at the moment, there’s always light at the end of the tunnel. Just like any challenge or journey in life, retrenchment, too, is a stage in life that many of us might have to go through, and the first step to recovery is always the hardest.
But it’s comforting to see various initiatives by the government to help combat the issue of unemployment and financial distress in the country. Let’s try to turn every disaster we face into an opportunity. Good luck!
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#StretchYourRinggit: 9 Brands With Rewarding Recycling Programs In Malaysia
- By CompareHero.my
- June 16, 2020
If you have old clothes, empty containers and skincare bottles from your used beauty products or cosmetics, you can now recycle them at these 9 popular stores in Malaysia. Brands like L’occitane, H&M, MAC Cosmetics, Kiehl’s, Innisfree and more provide their own recycling programs which will offer you sweet rewards, freebies and discounts. Read more to find out the details.
As we inch out of the Movement Control Order (MCO), any way to maximise each Ringgit is always a welcome thought. While we still want to enjoy the little pleasures in life, getting some added value to our purchases would be something each and every one of us would appreciate.
The great thing is that more and more brands are coming up with brand recycle programs to incentivise their customers. As part of our #StretchYourRinggit series, we’ll show you where you can get free stuff and discounts when you recycle skincare bottles and recycle old clothing in Malaysia. (Plus, what actually happens to old stuff when they get recycled!)
Contents
9 Brands That Reward You For Recycling
P/S: We got these info from each brand’s website and/or Facebook pages. Content is updated at time of writing, but may change at the discretion of the brand without prior notice.
1. L’OCCITANE recycling program
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Currency exchange rate:
- 10 empties – Cherry Blossom Shower Gel (15ml)
- 20 empties – Almond Shower Oil (50ml)
- 30 empties – Almond Milk Concentrate (20ml)
- 40 empties – Almond Shampoo (50ml)
- 50 empties – Immortelle Reset Oil-In-Serum (5ml)
- 60 empties – Immortelle Youth Divine Oil (4ml)
- 70 empties – Immortelle Divine Cream (4ml) + RM10 L’OCCITANE voucher
If you’re a member, you can also choose to redeem points instead of a free gift. (10 empties = 1 point)
Important to note:
First, they’ll create an account for you when you return your first empty container (a.k.a. “empty”) of ANY beauty brand. You’ll be able to log in to your account a day after that.
Once you’ve returned a minimum of 10 empties, you’ll be eligible to redeem a gift according to the items highlighted in green on your account. You’ll need to go to the store to collect it.
Members can also choose to redeem points instead of gifts too. Although they accept empties of any beauty brand, take note that they have a very specific list of what they consider “empties”. Read the full list here.
Also, you must clean each empty and ensure that they’re free from grease. More info here.
2. Kiehl’s recycling program
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Currency exchange rate: Bring 1 empty bottle and get 1 stamp. You can redeem your gifts once your reach the following milestones:
- 4th stamp – Ultra Light Defense SPF 50 PA++++ (5ml)
- 8th stamp – Hydro Plumping Re-Texturizing Serum Concentrate (5ml)
- 12th stamp – Amino Acid Shampoo (65ml)
Important to note: All freebies are subject to availability. Khiel’s may change the deluxe offering without prior notice. More info here.
3. innisfree recycling program
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Currency exchange rate: Bring 1 empty innisfree bottle, get 100 membership points (equivalent to RM2 worth of redeemable rebates in innisfree stores).
Important to note: Only applicable to innisfree containers which include essences, hair, and body products made of glass or plastic. Does not include makeup and canned-type products. You can also only return a maximum of 3 empty bottles per month. More info here.
4. M.A.C recycling program
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Currency exchange rate: Bring 6 M.A.C ‘primary packaging’ containers, get a free M.A.C Lipstick of your choice.
Important to note: Free lipstick excludes Viva Glam Lipsticks as 100% of the retail selling price of that particular range goes back to help HIV/AIDS organizations.
Following are NOT considered primary packaging and will be rejected:
- Secondary packaging (e.g. paper box, plastic wrapper, shopping bags)
- Samples (e.g. trial-size products, seasonal kits)
- Cosmetic tools (e.g. puffs, sponges, scissors)
- Accessories (e.g. lashes, bags)
More info here.
5. Melvita recycling program
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Currency exchange rate: Bring 1 empty Melvita bottle, get 1 Melvita point.
Important to note: The Melvita bottles must be full-sized. To help you gauge what you can do with Melvita points, 15 points is equivalent to an RM15 e-voucher. More info here.
6. Origins recycling program
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Currency exchange rate: Bring 5 full-sized Origins containers, get 3-piece trial kit on skin and/or body care
Important to note: More info here.
7. The Body Shop recycling program
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Currency exchange rate: Bring 1 empty The Body Shop plastic bottle/container, get an RM1 discount on your next purchase on the SAME day.
Important to note: The RM1 discount cannot be accumulated and can only be used for one product. This product must be the same type of product (as the returned bottle), but if the product has been discontinued, you can use the RM1 discount on a product of your choice.
Valid everywhere except in Sarawak, Johor Premium Outlet, and Mitsui Outlet Park. Not valid during sale periods. Only applicable on normal-priced items.
More info here.
8. H&M recycling program
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Currency exchange rate: Bring in a bag of clothes (e.g. old socks, t-shirts, bedsheets), get a 15% discount voucher for your next purchase.
Important to note: Does not have to be H&M-branded items, it just has to be garments or textiles. No specific weight or number of items either, as long as they roughly fit one standard-sized paper bag.
The 15% discount voucher is only applicable for non-discounted items in your next purchase. More info here.
9. Monki recycling program
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Currency exchange rate: Bring in a bag of clothes (e.g. old socks, t-shirts, bedsheets), get a 10% discount voucher for your next purchase.
Important to note: Does not have to be Monki-branded items, it just has to be garments or textiles. No specific weight or number of items either, as long as they roughly fit one standard-sized paper bag.
Voucher is valid for 6 months upon receipt. More info here.
Actually… what happens to old stuff when they get recycled?
In case you’re wondering, what ACTUALLY happens to the stuff you send for recycling? Do they actually get back on the shelf for someone else to buy?
For clothing recycling programs, some garments that are still in wearable condition do get sent to underprivileged communities to wear. And of course, depending on who you send your clothes to, it could also end up being resold as second-hand clothes in thrift shops.
Garments being sorted out for recycling.
Unwearable ones on the other hand get new lives in various different forms. If they’re not suitable to be reworn, they get converted into recycled fibers and non-woven fabric. We also found out that unwanted denim can be used as materials for building insulation because of its good insulation property. How jean-ious is that!
There are companies that also turn unwanted fabrics into actual biofuel. There’s a new technology that creates bioethanol from unwanted clothes through a fermentation process. There are actually sugars contained in cotton which can be fermented into energy. This technology isn’t very popular at the moment, but we can’t wait for the day where our cars can run on our dirty socks.
Certain brands also recycle skincare bottles and other product containers as is, but there are others who partner up with third-party sustainability companies (e.g. TerraCycle, super famous, friend to lotsa big corporations) to break down the materials to be re-made into something else. They can be turned into many different products, like playground equipment, decking, and sometimes back into yet another plastic bottle to be sold on the shelf.
“Beauty packaging sent in to TerraCycle for recycling will be shredded, cleaned, and sorted by plastic type.
The plastic shreds will then be melted and formed into small plastic pellets that can then be molded into a wide range of plastic products.” – Gina Herrera, Director of North American Client Services for the recycling program TerraCycle to Refinery29.com
Of course, when it comes to recycling, nobody really has a definite list of what actually happens after you hand your used products over to someone else. However, at least it’s better than actually throwing it out without giving it a second chance in life. Plus, with these rewards, you’ll be able to Stretch Your Ringgit and save on your next purchase.
Read also: 12 Easy Ways To Protect The Environment While Saving Money
Speaking of which, there are actually a million different ways to get more value for your money. For starters, there are credit cards that give you cashback when you spend, or points which you can eventually redeem for shopping vouchers and cool gadgets.
With e-wallets having their own turf war, you can also ride on plenty of deals that appear one after the other. Plus, they also have their own rewards system which you can compare in our ultimate e-wallet guide.
Actually, there’s a much bigger reward in store…
While recycling for freebies and discounts may sound like a great incentive, do remember the bigger picture here. In an ideal world, we would reuse existing materials over and over and over again so that we can stop tearing our planet into pieces and extend its life. But this ideal world doesn’t exist yet, not until everyone gets serious about sustainability.
More social enterprises are being set up to provide recycling solutions. More brands are pledging to do their part to close the loop, working with these enterprises to reduce the use of virgin materials.
But none of these efforts can work without the help of end consumers like you and me, who have the power to decide what to buy, and whether to recycle that empty bottle of shampoo, or throw it out with everything else.
While these brands have their own incentives to encourage their customers, it wouldn’t be a bad idea to make recycling and reusing second nature to us. If everyone practiced this, the eventual reward would be so much greater than getting a freebie in a bag.
If everyone recycled, landfills would shrink tremendously. The growing debris littered across land and water would substantially reduce too. We’d greatly reduce our carbon footprint, and minimise the impact of pollution. We’d reduce the need to scavenge for virgin materials, and likely see less tension among countries. Together with the planet, we’ll get to live healthier, longer, and happier lives… and if that’s not the best reward, we don’t know what is.
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#NewNormal: Should You Buy A New Property After COVID-19? Here’s What The Experts Say
- By CompareHero.my
- June 15, 2020
The impact of COVID-19 and MCO has affected the property market Malaysia. It is expected that the prices will drop or decline in these few months, but should you take advantage of this price drop and buy a new property? Read what the experts have to say.
The COVID-19 pandemic has left devastating effects on virtually all sectors of the Malaysian economy from tourism to airlines to hospitality, and the property sector is no exception to this as well.
Before the virus outbreak and movement control order (MCO), the 2020 property market was expected to slowly recover from a recession phase, which began in 2015. This phase has been marred by supply-demand imbalances causing property overhang, mismatch of house prices and affordability, weak consumer sentiment, property financing limitations, and a weakened ringgit against other major currencies.
Affin Hwang Investment Bank previously forecasted that the property’s sector was expected to slowly recover in 2020 after years of contraction following the start of the recession in 2015. Sustained revenue and profit margins were also expected to drive the 2020 property market forward, but circumstances have since changed due to the COVID-19 outbreak.
For starters, the volume of transaction units in Malaysia dropped by 9.9% (47,045 ) year-on-year (y-o-y) in Q1 2020 from 52,203, according to the National Property Information Centre.
2020 was supposed to be the recovery phase but predictions have changed following the virus outbreak. (Image source: iProperty)
Additionally with the virus still lurking in the community, coupled with uncertainties in both the national and global economies, experts now forecast the 2020 property market to remain soft, a.k.a a buyer’s market. Essentially, a soft market is one that has more potential sellers than buyers, and one where the purchasers hold much of the power in negotiations.
It is important to note that though the market may have become more desirable for potential buyers, Malaysians are still grappling with other issues that can hinder any aspirations in the market, such as rising unemployment (610,000 jobless people in June), sluggish wage growth and high cost of living. Without steady economic growth, a revitalized housing policy and incentives, buyers may not be tempted.
To help with our analysis, CompareHero.my spoke to several experts and home seekers to examine whether purchasing a new property amid economic uncertainties is the right decision.
Contents
How Has COVID-19 And MCO Impacted Property Price And Market? Experts Weigh In.
COVID-19 has presented the property market with its own set of challenges and uncertainties.
A thriving economy usually translates into a healthy property market. When a global crisis hits, it generally worsens the market, too, especially as people temporarily move away from purchasing luxury and big-ticket items during uncertain and difficult times.
But Jin Ooi, a team leader in real estate at Kith & Kin, said he’s still seeing an influx of demand from the Mont Kiara area which he covers. “Recently, there’s been a spike in the number of people setting up appointments with us – a lot of people are interested in seeing properties, particularly renting homes,” he said.
Jin has been working as a real estate agent for 3 years now, with a particular focus on the Mont Kiara property scene. (Image source: Jin)
The spike could be connected to the drop in property prices during and after COVID19. Jin said he’s already seeing and expecting a 20% decline in property prices at most as the market shifts into a buyer’s market as a result of COVID-19.
This view is echoed by Malaysian Institute of Estate Agents (MIEA) President Lim Boon Ping, who forecasted a decline of 10% at best, and a 20% drop at most, during the online ASEAN Real Estate Forum.
Dr Desmond Chong Kok Fei, deputy president of Malaysian Financial Planning Councils, however, told CompareHero.my that the decrease in housing prices might be more condensed within the subsale segment rather than the new property market. “In general, the holding power of Malaysia-owned property is still there. That’s why you don’t really see the drop in prices for subsale – yet,” he said. Holding power refers to the ability of a homeowner to continue servicing the property loan and other fees and costs.
We found this cool price checker on EdgeProp that might be useful for you. Click here to view property prices in Malaysia.
Related: What Is The Minimum Salary To Afford A Housing Loan In Malaysia?
Due to the lack of confidence and uncertainty of the market, owners, Jin said, may opt to cash out and park their money in other investments. Some owners may want to liquefy immediately because of emergencies. For instance, one of Jin’s clients sold his RM650,000 property for 20-30% below its value during the MCO because he needed the money to sustain his business. Potential buyers, on the other hand, may either play the wait-and-see game or push harder to negotiate for prices below market average, according to Jin.
Prices in the Mont Kiara scene, Jin said, are experiencing a drop of 10-20% while a smaller segment of the market has dropped significantly. “It’s a premium area, so the prices are not affected as badly as in the rural and small outskirts like Cheras, Serdang, Rawang, etc. (developing areas) where there’s a lot more supply than demand,” he explained.
Jin expects the market to bounce back within 2-3 years, and believes now is the right time to buy or invest in property for those who have secure cash flow. “If you’ve saved up properly and are looking, now is the bargain period,” he said. “When there is a crisis like COVID-19, the market may be down because owners want to sell, and invest elsewhere. But just because a lot of people are selling, doesn’t mean it’s a market downfall, it only means the owners have shifted their plans.”
“Over time there will be more ups and downs. Should you wait, or should you buy now? I think as long as you are ready to buy, go ahead, because it’s now a buyer’s market,” he added.
Should you buy or should you wait?
Chong’s opinion mirrored that of Jin he said, investing in property in the current market will indeed be a good bargain for those who have set their life and financial goals, have sufficient savings, and are aware of their target price.
But Jin said buyers will have to be more realistic when it comes to negotiating prices. “If you want to negotiate, be ready with a counter offer. It’s very unlikely that a property worth RM500,000 will drop down to RM250,000 because there’s still other costs to consider like building and material costs,” he said.
The state of the market may embolden motivated buyers to go all out, but both Chong and Jin cautioned against impulsive buying, and emphasized the importance of reflecting on one’s motivation and objectives before purchasing.
Yong plans to eventually come back to, and retire in Malaysia. (Image source: Eric)
When finance manager Eric Yong, 28, looks back on his first property purchase six years ago, he can now safely say it was in fact a good investment, though in hindsight, he wasn’t exactly sure what he was getting himself into.
“There was a new condo launch, so I just followed my friends, especially because the market was booming,” he said, who eventually got a 20-30% return from selling the RM300,000 condominium in Puchong after three years. “I didn’t really do much research on the property then, so I’m glad and happy I got a good return” he chuckled.
His decision to purchase his first property, Yong said, was made easy by the fact that the risks and his commitments seemed low at the time: the house didn’t require a lot of capital as down payment, and because he was still living with his parents. After deducting monthly installment, Yong still managed to save more than 50% of his salary.
Related: Things You Need To Know About Under Construction Property in Malaysia
He is currently looking for his latest and fourth property of which he plans to reside in permanently (he has since sold off his first two properties), while his third property is currently used for long-term investment.
But his latest house hunting experience will surely be different compared to when he was 22. The circumstances are starkly different now with COVID-19 rampaging across the globe.
“Unlike in the past, now I don’t really get to see and feel the properties I’m scouting for because I can only view them from my phone, but it’s starting to rub on me. As long as you can get a trustworthy agent, that smoothen the process so much more,” he said. “Because of the current situation (COVID-19), I think there might be good opportunities in the market. I feel like I can get a good property at a cheaper price.”
Luckily for Yong, COVID-19 hasn’t impacted his finances. “If anything happens in the market – whether prices go up or down, it doesn’t really matter to me because I’m looking for a place to stay, and I had already fixed a budget. But I’m looking now in particular because of the reduced prices,” he said.
Trini admits that looking for a property, especially when you have a lot of requirements is not an easy process. (Image source: Trini)
Yong’s sentiment was shared by Trini Ng, 31, who also believes COVID-19 has presented a rare opportunity to secure a bargain in the market. She is currently looking for her second, and permanent property to reside in after years of renting.
“For me, the problem with renting is all the hassle that comes with moving in and out. Plus, you don’t have a place to call your own. The amount that I pay for rent right now is as good as paying to the bank. At this point in time, I think it’s the right thing to do, especially now that property prices are on the decline,” said Ng, who currently works at a Malaysian conglomerate.
She had initially intended to live in her first property purchase, but decided against it when she couldn’t secure a property at the right location and budget, a lesson she’s taken with her into her latest property hunt.
“The first lesson I can share is to set your objective right. At first I wanted to buy a place for my own, but a twist of events had changed this, and I ended up buying for an investment instead. The lesson here is to follow through with your plans and don’t get distracted,” she said.
“I also learned that having more than enough cash is very important. Before I purchased my first house, I thought I needed only a 10% down payment, but it turned out to be way higher than that, especially after adding all the other fees. If you want to buy a sub sale unit, make sure you have a lot more savings than you actually have. If you don’t have enough money just consider getting a cheaper unit or wait until you have more savings,” she added.
Now, backed with more experience, she’s more aggressive in her approach, casting her net wider than before including searching and researching for both subsale and new properties.
Trini hopes to find a place near her workplace in order to save up on transportation and toll. “Other factors I’m considering is the environment, security of the place, the size of the house, and the price range must be within RM300,000.”
Similarly to Yong, the COVID-19 pandemic hasn’t negatively affected Trini’s finances or her home searching process, instead, she said, it’s managed to elevate her search and may even bring her one step closer to getting a place of her own.
“It’s done the opposite for me – I’ve noticed houses that used to be so pricey gone down a lot and this convinced me that now is the right time to buy a house, particularly before it goes up again. But this is just based on my research on Mudah.my over the past few months,” she said.
Like many others in the market right now, she’s facing a serious dilemma of either wanting to buy now or to wait for a higher drop. “People who are very keen might be tempted to buy right away, but there’s always that fear of missing out if prices drop further,” she said.
So, should you get a new property in this current market? The short answer is yes, but with several caveats.
For many of us, buying a home for stay or investment is one of the most crucial financial decisions we’ll ever make in our lifetime. So before splashing on such a big ticket item, consider these factors first, especially in this COVID-19-inflicted economy.
What Should You Consider Before Getting A Property In Malaysia?
To ensure an effective investment and strong returns in the long run, here’s a list of things to tick off when hunting down for your dream home, so that you can finally go on that long sought after holiday or securing your future retirement plans.
- First things first, set proper financial goals.
- Don’t dive deep into the property market without a plan. Know what you want, and find out where, and how to get it.
- Don’t sit on your plans. Apply for a loan, get a banker, lawyer etc. Act quick or your dream home might be sold.
- But don’t rush into your plans either. Make informed choices, one where all options and financial and non-financial factors are considered.
- Work with a trusted real estate agent or company.
- Be informed and do a reasonable amount of research
- Cash is king, so make sure your cash flow is solid
- Finally, understand why you’re getting a house. What is it for?
If you’ve managed to tick all pointers off this list, then congratulations, you’re on your way to securing a property. But as always with anything in life, enter with caution. We wish you all the best in your property hunting journey!
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A Complete Guide To Employment Insurance System (EIS) Benefits In Malaysia
- By CompareHero.my
- June 10, 2020
Many Malaysians have lost their jobs or been retrenched during the MCO. If you’re one of them, read this guide to learn more about the Employment Insurance System (EIS) or Sistem Insurans Pekerjaan (SIP) and how much you can claim for your unemployment benefits.
There have been various unemployment assistance efforts since the country went on a Movement Control Order (MCO) amid the Covid-19 pandemic. In his latest address, PM Muhyiddin Yassin announced yet another economic stimulus package amounting to RM35 billion to help the country regenerate its economy.
The country is at a needful time for such help, as many have had their rice bowls affected one way or another. Depart of Statistics’ chief statistician Mohd Uzir Mahidin recently shared that Malaysia’s unemployment rate rose to 3.9% (610,000 jobless people) – the highest since June 2010 when the rate was 3.6%. And in more relatable ways, we ourselves know of immediate friends and family who have, in fact, been victims of retrenchment during the MCO/CMCO.
So… what can you do if you find yourself part of this statistic? What should you do after getting retrenched?
Thankfully, most workers are covered by the Employee Insurance Scheme (EIS) by SOCSO (a.k.a. PERKESO). If you’re eligible, you’ll have access to a variety of help, including some financial assistance for up to six months. We’ll dive into this in the next few sections, but first, let’s take a look at the basics.
Contents
What is EIS?
The Employee Insurance Scheme (EIS), which is administered by the Social Security Organisation (SOCSO), seeks to provide temporary financial assistance for up to six months to workers who are retrenched or have had some form of loss of income.
This is actually something that the Malaysian government launched not too long ago – October 2017 to be exact. It’s a very helpful initiative for Malaysian workers, and looking at the unemployment statistics, it is now more important than ever.
Wondering where this pool of money comes from? Well, if you take a closer look at your payslips, you’d notice a small deduction for something called your Employee Insurance Scheme.
Monthly EIS deduction as seen in a Malaysian employee’s payslip.
Here’s how it works. Both your employer and yourself would contribute 0.2% of your salary to the scheme (total 0.4% monthly). Monthly contributions start from 10 sen for workers earning RM30 a month, while the maximum amount of contribution is capped at RM7.90 for those earning RM4,000 and above.
This means that even if you earn RM20,000 a month, you’ll still contribute RM7.90 to the EIS. (RM15.80 when you include your employer’s contribution.)
Also read: How To Submit A SOCSO (PERKESO) Claim For Work-related Injury
What Are The Benefits of EIS?
There are many benefits that come under this insurance, ranging from monetary aid to job search assistance.
The most popular at the moment would be the Job Search Allowance (JSA). Under this, if you’re eligible, you’ll be able to claim your allowance for up to 6 months.
We’ll dive deeper into the JSA in the sections that follow, but for now, here are some other benefits that the EIS features:
- Reduced Income Allowance (RIA) – for those with multiple jobs, but lost at least one of them. Payment rates and duration of payment is the same as JSA.
- Training Fee – paid-for vocational training of up to six months.
- Training Allowance – incentives for you to attend and finish your training.
- Early Re-Employment Allowance – for JSA recipients to get back into the workforce.
- Re-Employment Placement Programme – job search assisted by SOCSO.
- Career counselling – job search assisted by SOCSO.
Who Is Eligible For EIS In Malaysia?
Before we get into the claimable allowance, you must first know that not everyone is eligible to claim. Here are some of the EIS terms and conditions that apply.
Fundamentally, the EIS covers:
- Malaysian citizens / permanent residents
- Aged 18-60
- Working in the private sector
- Employed based on a contract of service
- Have been contributing to the fund for a minimum number of months within a specified period of time
However, the EIS does NOT cover the following:
- Domestic workers
- Self-employed workers
- Civil servants
- Workers in local authorities and statutory bodies
- Workers aged 57 and above who have never paid contributions before that age (they’re also not required to contribute to the scheme)
Equally important to note is the reason for your job loss. To be eligible, you have to fall into either one of the following:
- Normal retrenchment and redundancy
- VSS/MSS (Voluntary/Mutual Separation Scheme)
- Closure of the company due to natural disasters
- Bankruptcy or closure of the company
- Constructive dismissal
- Resignation due to sexual harassment or threats made in the workplace
- Resignation after being ordered to perform dangerous duties that are not within the job scope
You will NOT be eligible if your job loss is a result of one of the following:
- Dismissal due to misconduct by the employee
- Voluntary resignation
- Retirement
- The expiry of a fixed-term contract
One very important thing to be aware of is also when to claim your EIS benefits. You MUST claim this within 60 days of losing your job! Wait a day longer and you won’t be eligible anymore.
How Much Can You Claim From Your EIS?
It’s a relief to know that you would have some form of allowance in store for you, but as we’ve just mentioned, you won’t be able to rely on this for too long. The allowance allocation can only be claimed for a maximum of 6 months, so you should try looking for a job ASAP to lessen your financial insecurities.
To get your 2nd month’s allowance (and other subsequent months), you will also need to provide proof that you’ve been actively trying to look for a job. Without that, you won’t be able to claim for the months that would follow.
Not only that – your allowances will also lessen by the month:
- 1st month: 80% of your assumed salary
- 2nd month: 50% of your assumed salary
- 3rd & 4th month: 40% of your assumed salary
- 5th & 6th month: 30% of your assumed salary
What’s your assumed salary, you ask? This number would be based on your previous salary, and you can check this table to find your assumed salary. Let’s demonstrate with Ali:
| Ali’s last drawn salary before retrenchment | RM3,800 |
Ali’s assumed salary according to SOSCO’s table | RM3,750 |
1st month allowance (80%) | RM3,000 |
2nd month allowance (50%) | RM1,875 |
3rd and 4th month allowance (40%) | RM1,500 |
| 5th and 6th month allowance (30%) | RM1,125 |
In the previous section, we mentioned that there will be a maximum contribution limit. Likewise, there will be a maximum assumed salary (RM3,950) and allowance too. This means that even if you earn MORE than RM4,000, your maximum assumed salary would still be RM3,950.
How To Apply For EIS
If you meet all the requirements highlighted in the earlier section, then now it’s time to start claiming.
To get your EIS benefits, you can either apply online using this link or go straight to the PERKESO office. Don’t forget to bring along these documents:
- A copy of your NRIC
- Proof of Loss of Employment (LOE), e.g. a termination letter
- A copy of your bank account information
- Pay slips for the last 6 months
Here’s a simple, step-by-step guide on how to claim your JSA EIS benefit by SOSCO:
- Register at the EIS Portal and complete your application with the necessary information.
- Wait for the result of your application either via email or using the Portal ID.
- Once approved, complete and submit the Re-Employment Placement Form.
- The payment will then be accredited into your account.
Do note that this is only to get your first month’s allowance of 80%. As highlighted previously, you’ll need to provide proof that you’re actively looking for a job in order to get the benefit for the subsequent months.
The allowance isn’t for relaxation – it’s to help you get back on your feet. Keep looking for jobs in the meantime.
While we couldn’t find any no official guide on the documents needed for this, what you can do is to save job applications, interview appointments, emails, letters – anything else, really – that will show that you have been really trying to get a job. Make sure that the dates are correct, too!
And, just in case… What can you do if your EIS application is rejected? All you need to do is to get an appeal form from the PERKESO office and file an appeal at the Social Security Appellate Board.
Apart from the JSA, you are also eligible to apply for other benefits, such as the Training Fee (TF), Training Allowance (TA), and the Early Re-Employment Allowance (ERA) which we briefly mentioned at the start.
If you’re affected, it’s best to act fast
While the thought of contributing 0.2% monthly to the EIS may look like nothing, from looking at the claimable allowance above, it’s safe to say that the sum is actually surprisingly large in comparison. At the end of the day, any form of financial aid in such trying times would always be of help.
It would be wise to try out different ways to supplement your income, even if it means being self-employed. Many industries are affected and most have frozen their hiring. Turning to your own skills would be the lowest hanging fruit right now.
Thankfully, SOCSO also has programs which cover self-employed Malaysians with NO age limit. It covers 19 different industries, including transporting (e.g. Grab drivers, FoodPanda riders), online businesses, IT, agriculture, F&B, arts, beauty and healthcare… the list goes on.
Under the Self-Employment Social Security Act 2017, with a monthly contribution, you’ll receive protection against injuries, diseases, and accidents during work-related activities. More info here.
And as a last resort, if further assistance is needed, you can also browse through some of the personal loans available to your situation, or extend your credit limit on your credit cards to help bolster your finances temporarily.
Just remember that these applications will mostly require your latest 3 months’ payslip, so you need to act fast if you do decide to do this. More importantly, remember to only take on loans if you have a fool-proof repayment plan – the last thing you need at this point is to take on more than you can manage.
Not wanting to end on a grim note, things do look like they’re eventually recovering as we reach the tail-end (fingers crossed) of this Covid-19 pandemic. In his latest address, PM Muhyiddin added that in March, Malaysia saw an employment rate of 610,000 people. It then rose to 10.2 million in May, and then 12.7 million on 2nd June 2020.
With more and more incentives being put out to encourage employers to hire, the good news is that things are definitely starting to look better… so don’t give up on finding that new job. Your ray of light could be right around the corner.
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