Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

Traffic Summons Deadline Extended

As we known, the date for the settlement of outstanding traffic summons had been extended to March 10. From now onwards, summonses must be paid in full or else we are not allowed to renew our road tax, driving license and not even allowed to buy or sell cars.

Based on the record, there are still remaining outstanding summonses of 17.3 million still not being paid. This is the reason why our government still giving second chance to our citizen as there’re about 1.7 millions motorist who could be potentially blacklisted. So, that’s not a good achievement in the sense of the authorities’ capability.

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Do You Feel Satisfied with EPF Dividend Rate for 2010?

Recently, EPF declares the dividend payout of 5.8% for the year 2010. Compare to year 2009(5.65%), it is an increase of 0.15% in dividend payout. Thus, the returns for the year 2010 is in fact slightly better than 2009. The increase still acceptable as year 2010 economy was strong in the first and second quarter and economy crisis turn down a bit start from the mid of the year.

I believe that most of the account holder will feel very happy with 5.8% EPF dividend payout for the year of 2010, as it is higher than parking your money in fixed deposit. But, do you know what’s the average dividend rate of EPF is over the period of year before retirement? It is better you do the math to calculate your future EPF funding projection so that it will be easy for you to decide how you can utilize your EPF account smartly.

Do You Feel Satisfied with EPF Dividend Rate for 2010?

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EPF Employee Contribution Rate Revert to 11%, Good or Bad?

Before that, our government allow employee to reduce their EPF contribution from 11% to 8%. However, start from this month, the EPF employee contribution rate will back to normal which is 11% while their employer’s contribution rate still remains at 12% of your monthly wages. Thus, you can now enjoy total of 23% EPF contribution of your monthly wages.

Our government can make such decision due to the recovery from bad economy which you can see from different sector such as banking, employment and production.

I will strongly agree with the move as you can have huge benefits from the big picture. The reduction of EPF contribution rate will increase the employee’s disposable income and this will increase their spending as well. In the other words, they are spending their future money instead. Subsequently, they will less money for retirement. Not only that, you will also need to pay more income tax as you have higher income.

Why Our Government Increase the Rate from 8% to 11%?

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Police Summons Discount Offer up to 50%

Is there amongst of us who has never been issued a traffic summons before? I’m very sure that almost 90% of Malaysian has been issued before. In order to reduce offenders backlog, our government has announced to offer special discount rate for traffic summons which paid within certain time frame. So, it’s the best time for all of the traffic offenders to settle all their police summons.

Starting from 1st December 2010, you can pay all your summons which issued on or before 30th November 2010 at a discounted rate. If your summons settled within 15 days then you will be offered a 50% discount from your original compound. If your summons settled after 15 days but not later than 30 days then you will be offered a 30% discount from your original compound. But, you will be blacklisted if your summons is not settled within 30 days.

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Budget 2011: 100% Housing Loan For First Home Buyers

Great news for first time home buyers! For those incomes below RM3000 no need to make 10% down payment on house purchased as they can obtain 100% full loan. It brings more benefits to those low income group and fresh graduates who face difficulties in buying their house.

Under this My First House Scheme (Skim Rumah Pertamaku), the 10% down payment will be guaranteed by Cagamas Bhd for houses purchased below RM220,000.

Another good news is house buyer will enjoy 50% on stamp duty exemption for house priced below RM350k. So, basically our government increase it from RM250k-350k. Refer to my previous article 50% Stamp Duty Waiver For House Purchased. However, I’m not sure whether this initiative will speed up the bursting of the housing bubble or not, so we will see.

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