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• By CompareHero.my
• October 10, 2019

Budget 2020: What Can We Expect?

• By CompareHero.my
• October 8, 2019

Hello Malaysia!

We’ve entered October and it only means that we get to see what’s in store for us next year when Lim Guan Eng, our Minister of Finance presents the annual budget on October 11, 2019. The annual national budget has been one of the most anticipated events for Malaysians year in, year out as it covers the proposed government revenues to the new financial strategies to be implemented for the following year.

We all have our own wishes that may or may not come true. Are we going to see more tolls get abolished? Is GST making a comeback? Is our internet connection going to match that of South Korea’s? Guess we’ll just have to wait and find out. One thing’s for sure, the theme set for Belanjawan 2020 is:

#SharedProsperity or #KemakmuranBersama

A few months ago, Lim Guan Eng shared several goals that will be the crux of Budget 2020. This will cover adequate medical care, better quality education, more job opportunities and improved wages, affordable homes, and freedom from unfair competition as well as monopolies.

Now, let’s take one step at a time. Before we proceed, let’s briefly run through some of last year’s highlights.

See also: Malaysia Budget 2019

(Infographic Source – Bernama)

See also: Budget 2019: Summary Infographics To See 

So, what can we expect for Budget 2020?

Ever since taking office, a lot has been on Pakatan Harapan’s plate. They have been actively addressing the existing woes of the Rakyat, particularly in the creation of more jobs as well as ensuring the cost of living is brought down, albeit not an easy feat. Making its mark as the second budget of the Pakatan Harapan coalition, we’re hoping some of the major concerns of the Rakyat will be addressed.

As we draw closer to the date of the annual budget presentation, the finance minister has shed some light on what Malaysians can expect to be covered. Let’s take a look at some of the possible areas that may be addressed.

Bear in mind that external factors could also affect the outlook of the budget. With the two economic giants, US and China, the trade outlook seems poor. With the persistent turmoil in the Middle East, the unpredictable petroleum prices, the growing uncertainties of global climate changes including the damaging haze, and more — the prospects for economic as well as financial declines are becoming real.

But let’s get into it anyway:

Addressing Poverty

It wasn’t too long ago when the government introduced the T20, M40, and B40 term to classify the different income groups in Malaysia. Addressing poverty in the upcoming budget includes targeting the B40 group which has a total household income of not more than RM4,000. This group is much impacted by the current hike in the cost of living and we’re hoping more policies to elevate the lives of those under the B40 category will be implemented. The Budget 2020 has to come clear on this vital issue as the new poverty line will provide the basis for the budget’s expenditure policies and allocations to fight poverty.

See also: The T20, M40 and B40 Income Classifications in Malaysia

Minimum Wage

While this issue has been in discussion for years, our minimum wage still remains at a lower level and it could still be raised appropriately and gradually to meet the decent living wage. As of now, the current minimum wage in Malaysia is set at RM1,100 — this has to rise in order to reflect higher standards of living as well as cost of living.

Check out a reference from the Big Mac Index infograph that has been published by The Economist below. This graph illustrates the measurement of the people’s purchasing power between two currencies, and provides a test of the extent to which market exchange rates result in goods (in this case, a Big Mac burger) that costs the same across different countries.

This chart should give you an idea of how low our minimum wage is.

(Source: Martin Armstrong)

So which countries have the cheapest and most expensive Big Mac? Based on the 2019 chart in US Dollars, the top five most expensive includes $6.62 for a Big Mac in Switzerland; $5.86 in Norway; $5.84 in Sweden; $5.58 in the United States; and $5.08 in Canada.

Malaysia is ranked as the top five least expensive in the world with only $2.20 for a Big Mac. This means the value of the Malaysian currency is sitting at the fifth lowest level against 48 other currencies. So with the Big Mac costing only $2.20 in Malaysia, while it means we have one of the highest purchasing power, it also means that we have the ability to spend the lowest among the other countries.

See also: Understanding Living Wage in Malaysia

Inflation

The Malaysian inflation rate has risen to 1.5% in August and should be contained. Here again, there should be different cost of living indexes for the poor. This would help more specific policies, projects and programs to alleviate poverty as well as to reduce the widening income gap. The income inequality gap between the rich and the poor has to be bridged if we believe in implementing the UN-inspired sustainable development goals (SDGs), especially pertaining to no poverty.

Digital Economy

The world’s economy is now digitally-driven. It is critical that Malaysia takes the lead in key areas such as digital adoption, digital entrepreneurship, and innovation. Tech talent will help drive our nation’s Digital Economy forward.

Hence, the budget has to introduce new incentives to encourage, especially the small and medium industries to innovate and adopt newer technologies of the digital age — particularly as we advance towards Industry 4.0 and 5.0 in the future.

Environment

Let’s go back to basics. Environmental challenges are threatening our future growth, income distribution and progress. It’s about time we sort out our waste disposal. We even tolerate toxic industries that others reject. Surely, the budget has to come out with new proposals from the new government that could work towards more sustainable initiatives which involves renewal energy and waste management.

Science and Technology

On a good note, Malaysia’s solar photovoltaics (PV) industry is on the rise thanks to strengthening government support. This is just one area that there has plenty of potential. There are other vital areas in this field such as information technology, agriculture, bio medicines, and more. Hence, why technical and vocational training as well as science and technology should be given more allocations in Budget 2020. What’s equally important is the need to choose trainers on the basis of merit and real skills rather than to employ under-qualified teachers who can’t perform satisfactorily.

Healthcare

Let’s be honest, the healthcare system in this country needs massive improvements. I’m talking about healthcare in the government sector. We should be able to emulate the healthcare system in countries like the US or the UK. Apart from allocating sufficient budget to fund the latest equipment, the government should seriously consider implementing proper policies or introduce more efficient ways that these government hospitals or clinics run.

Hospital charges could be adjusted to gain more revenue whilst still offering more affordable rates. How can we make access to healthcare and medicine more affordable for those who need it?

Taxes

Apart from the much-dreaded digital tax, what else is in store for us? The Prime Minister had recently announced the need for implementation of new taxes in 2020, but however stressed that “it must not be a burden to the people”. Despite the speculation on the reintroduction of GST, reports revealed that the PM said the government does not intend to reintroduce GST at the moment as frequent changes to the tax system would reduce confidence among investors.

We’ve had a fair share of long-standing debates when it comes to the implementation of taxes. How can we ensure the taxes do not burden the Rakyat but is implemented fairly across income groups?

See also: Comparing SST vs GST: What’s The Difference

See also: New Taxation Rates In Malaysia According To Budget 2019

Business

We need to continue improving our country’s business confidence if we intend to drive growth towards being one of the global financial hubs in the future. The culture of Malaysia is a unique one that appeals to many foreign and domestic investors due to our national unity, racial harmony, religious appreciation and more.

Too much politicking, racism and religious bigotry will only put off investors. Hence, we need to push forward genuine inclusiveness that includes just treatment to all state governments —  particularly to the power states of Sabah and Sarawak as promised in the M63 Financial Agreements.

Conclusion

Reality is that while there will be some gainers, there will be aspects that would not benefit as much. However, as long as the new Belanjawan 2020 strategy lives up to its theme of Shared Prosperity, we’re on the right track towards becoming a united nation that is economically progressive and competitive yet robust and dynamic. The right budget initiatives will materialise in a nation that grows as one instead of selectively.

By the way, did you know that we’ll be doing a live update on the national budget come October 11? Watch this space and you’ll never miss a single announcement! 

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CIMB’s Complete Suite of SME Solutions

• By CompareHero.my
• October 7, 2019

CIMB has refreshed their SME business proposition, to provide customers with a complete suite of solutions that go beyond banking.

Anchored on three pillars: SME Transact (e.g. cash management services), SME Financing (e.g. no-collateral and business property financing), and SME Partners (various services from logistics, workspace and connectivity etc, offered by CIMB partners).

Both CIMB Bank and CIMB Islamic Bank are on track to disburse RM15 billion to SMEs in 2019 to 2020, having provided RM3.9 billion to Malaysian SMEs for the six-month period ending June 2019.

Source: The Star

“Beyond financing, our support comprises knowledge-sharing and strategic partnerships, so that SMEs, start-ups and entrepreneurs can develop and scale up systematically.” CIMB Group Holdings Bhd chief executive officer Tengku Datuk Seri Zafrul Aziz said.

• SME Transact includes cash management services; reward opportunities of up to 2% per annum with CIMB Islamic business current account; and fee waivers on online business banking.
• SME Financing, includes no-collateral and business property financing.
• SME Partners encompasses various services from logistics, workspace and connectivity, to digital, e-commerce, as well as accounting and HR solutions in the pipeline, offered by CIMB partners.

CIMB has also partnered Axiata Digital Capital to provide 700,000 SMEs in Malaysia and Indonesia in tandem with access to financing solutions. CIMB did not only collaborate with CapBridge Pte Ltd to assist SME capital raising, CIMB also provided them a platform to access market globally with the Asean-China Halal Corridor as the world’s demand for halal products overtook the supply.

CIMB also said in collaboration with Credit Guarantee Corporation (CGC), CIMB Islamic had allocated RM2bil unsecured Shariah financing; as well as micro financing to small business owners via the imSME, Malaysia’s first SME financing/loan referral platform, managed by CGC. Customers now have access to micro financing via imSME at 10 selected branches from September onwards with the aim of making this available nationwide by year-end.

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CIMB Launches RM100 million in SME Financing for Renewable Energy Technology

• By CompareHero.my
• October 4, 2019

CIMB Group Holdings Bhd recently launched RM100 million in financing for small and medium enterprises (SMEs) to acquire and install renewable energy technology, as part of its RM15 billion SME allocation for 2019–2020, and the group’s sustainability commitment.

Among the first initiatives of this agenda is to provider smaller SMEs with 100% financing to cover the cost of solar photovoltaic systems and the installation of these on their rooftops. The financing initiative offers packages from as low as RM20,000 and up to RM1 million, and is in support of the government’s Net Energy Metering (NEM) scheme. However, SMEs need to first obtain the NEM approval from Sustainable Energy Development Authority (SEDA), to be eligible for CIMB’s Renewable Energy Financing.

The financing initiative provides a practical solution to enable even the smaller and micro SMEs to purchase solar PV systems to save on their electricity bills, and contribute to planet earth’s well-being.

“Our planet is at a tipping point, from an environmental, economic and social (EES) perspective, and we must take action now. To that end, members of the banking and finance industry can and must leverage on our resources and network to catalyse real lasting change across these fronts, and to begin pursuing profits with a purpose,” – CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz.

CIMB’s sustainability programme was launched at their two-day Cooler Earth Sustainability Summit, held on October 1 to October 2, 2019. It is CIMB’s first-ever regional platform to raise awareness on social and environmental risks and opportunities within the context of business and finance in shaping a sustainable economy and was witnessed by Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin. The group mentioned that they have taken other steps to fulfill its commitment to Sustainability, a key pillar in its current growth strategy. These include launching its Group Sustainability Policy and Sustainable Financing Policy to guide decisions on operations and lending policies to ensure positive EES impact. Besides that, CIMB is one of 30 founding member banks and the only Asean banking group that helped draft the UNEP-FI’s Principles of Responsible Banking, currently supported by 130 signatory banks globally. And on September 30, 2019, CIMB also announced that it had successfully priced its US$680 million SDG bond, the proceeds of which will be channeled to various impactful sectors that serve seven of UN’s Sustainable Development Goals (SDG’s) that CIMB Group has committed to.

SMEs encouraged to participate in NEM programme.

SMEs participating in the newly enhanced net energy metering (NEM) programme stand to enjoy better tax allowances, in addition to being able to manage their electricity costs more effectively. Under the programme, energy produced from the installed solar PV system will be consumed first, and any excess energy can be exported to TNB on a “one-on-one” offset basis. The scheme is applicable to all domestic, commercial, industrial and agricultural sectors as long as they are TNB customers.

Jobs with the Highest Starting Salaries for Fresh Graduates in Malaysia [2019]

• By CompareHero.my
• October 3, 2019

“Dad, its Sunday. Can I have my allowance for the week, please? Oh, and may I have an extra RM200 since it’s my birthday week?”

Does that sentence ring a bell? Those good ol’ days when money would magically appear whenever we call for it.

Question: Does that magic still apply today? 😆

If it still does for you, then trust me, it’s about to disappear real soon. The money used to fund all the weekend parties, date nights and latest gadgets will soon have to come out of your own pocket. And in order to do so, you’ll have to work. So, school’s our and you’re about to embrace adulthood. Think reports, bosses, deadlines, files piling up, late hours, more reports, emails, clients… the list is endless.

Contents

• Jeng jeng jeng . . . 
• 1. Engineering (Civil)
• 2. Medicine
• 3. Accounting
• 4. Management Consultancy
• 5. Human Resources
  • Hey wait, there’s more!

Jeng jeng jeng . . . 

Stepping out from school, the working world is a whole different ball game. Have you given thought about which company you want to work in or your field of choice? You can only dodge that question for so long before your relatives start asking you during family get-togethers.

But fret not, that’s why we’re here.

If you’ve just completed your tertiary studies, read up. Psst! If you’re an SPM-leaver, you should give this a read as well.

This article dives into the most interesting and important part of any employment: the ka-ching! 💰 Here, we give a round-up of the top five sectors that pays the most for fresh graduates in Malaysia.

1. Engineering (Civil)

The next time you’re out during the weekend, stop and take a good look around you. Daya Bumi, KLCC, KL Tower, Pavilion Shopping Mall… these are brainchildren of civil engineers.

The job of a civil engineer is to create, improve and protect the environment in which we live in, and that includes planning, designing, overseeing construction and maintenance of building structures as well as infrastructures like roads, railways, airports, bridges, harbors, dams, irrigation projects, power plants, sewerage systems and more.

The demand of civil engineers is huge and is widely known to be one of the highest paying jobs in Malaysia, with a salary scale between RM4,000 to RM6,000 or more depending on the project one gets.

However, do take note to stock up on sun tanning lotion as the job entails long hours in the open.

Did you know?

Civil engineers created the slipperiness of a water slide.

2. Medicine

Fan of Grey’s Anatomy? Why don’t you try living it! All those sleepless nights chasing after nurses and attending to patients do pay off when we’re talking about dollar bills.

Doctors, in my opinion, have the most important job. I mean, what else could be more important than saving lives right?

As a medical graduate, you can apply for an apprentice program and then get absorbed as a medical professional in a hospital in Malaysia. Students in their last year of MBBS or currently pursuing their Masters of Surgery (MS) can also apply for an apprenticeship program at a hospital. A doctor in Malaysia is paid around RM3,500 to RM6,000 or more depending on the level of experience in the profession.

Here’s the great news.

A recent report suggested that Malaysia’s total healthcare industry will double its profit as much as RM80 billion by the end of 2020. The growing health concerns among citizens and the inflow of patients from other countries for medical treatment in Malaysia’s hospitals are some of the factors contributing to the increasing demand in this profession. Moreover, the constant requirement for research and development in medical technology has driven the country to introduce advanced medical courses in Malaysian universities.

Did you know?

Egyptians were to first to practice surgery

3. Accounting

Calling all mathematicians! Now, this may not be everyone’s cup of tea but if numbers are your thing, then accountancy may be your calling. Graduates who are looking forward to building their career in accounting and banking can rejoice at their pay scale. 

The demand for qualified finance professionals is increasing at a rapid pace and will continue to increase in the next 5 to 6 years. As a financial professional, you can expect a salary that ranges from RM3,500 to RM6,500. For Chartered Accountants, salary might vary due to their professional status in the finance industry.

Did you know?

The word ‘accounting‘ comes from the french ‘compter‘ meaning to count or score.

4. Management Consultancy

Not a popular career choice, and it may even be unheard of back in the days. Management consulting is a practice of helping organisations to improve their performance. The need for management professionals will never go out of demand. From manufacturing and information technology to medical and the service industry, management professionals are in the hot list across all sectors.

As a fresh graduate in Malaysia, you will be able to find plenty of managerial job vacancies. Moreover, it is forecasted that the coming years will witness a salary hike between 15 to 20 percent due to the rapid growth in the Malaysian economy. As a management trainee and professional, you will be earning around RM2,500 to RM5,000.

Did you know?

You don’t necessarily need an MBA to pursue a career in management consulting.

5. Human Resources

Human Resource (HR) is a department that exists in any company across all fields. It is the engine of a particular organization; without the HR department, a company will crumble.

One of the highest paying jobs in 2019 for fresh graduates in Malaysia includes human resources. Like other managerial functions, human resources can never be neglected. Every company, big and small, has human resource professionals whose job is to look after employee welfare, salary, grievances, and more.

Being a human resource executive, you will be responsible for conducting interviews with eligible candidates; evaluating their interview; recruiting new employees; maintaining their salary, health and medical insurance; as well as providing training to new employees on top of the other HR-related activities.

As a fresh grad, your salary goes from RM3,500 to RM5,000. But this of course, varies from company to company.

Did you know?

HR managers believe that Tuesday is the most productive day of the week.

While this article highlights the sectors that pay well for fresh graduates, do take into consideration that the numbers are just ballpark figures based on reports compiled from several sources. In most cases, salaries are paid according to the discretion of employers, but it’s good to be aware of what you are worth as a fresh graduate.

Hey wait, there’s more!

Speaking of knowing your value, let’s quickly talk about internship in Malaysia. Back in August, the Minister of Youth and Sports announced that the government has decided to increase the allowance for interns from RM1.60 an hour to RM5 for jobs within the government sector.

In the light of a Twitter user’s complaint that questioned why several government agencies refused to pay its intern, the ministry has launched a portal for submission of reports regarding underpaid and unpaid internships taking place in government agencies as well as private companies.

Should there be any discrepancies when it comes to your pay as an intern, submit a complaint via this portal.

And before you go, watch this video for some cool tips on job hunting as a fresh graduate.

(Video source : Jobs for Every Juan Youtube Channel)