North Finance Reviews

North Finance has been on the market since 2001. North Finance addressed at Lymasol Cyprus; however, North Finance registered at Belize. Like two sides of coin, this forex broker has two different sides, bad and good side. North Finance's good side is competitive spread, easy new account opening, small minimal capital, easy deposit and withdrawal operation, interesting leverage, free Meta trader trading platform, good customer support, bank guarantee, swap free policy, IB business opportunity, trading varieties. North Finance is not good at news matter, no news tab in this broker's Meta trader, and busy server at news release.
In this forex broker, the spread is quite interesting; begin from 2 up to 10 pips in the news time and no commission. It is very easy to begin trading in North Finance, you can open account within 10 minutes from all over the world through the internet. The minimum capital to start forex trading in North Finance is $100; moreover, no minimal deposit and withdrawal at this forex broker, you also do not have to pay charge in deposit and withdrawal operation in North Finance. This forex broker accepts deposit via wire and electronic payment (e-gold). Credit leverage in this forex broker is very attractive, especially for low capital trader; begin from 1:1 up to 1:500.
This forex broker use Meta trader, instant execution and quotation system with eleven different languages. However, regrettably, North Finance's Meta trader does not support news that is one of important factor in forex trading. North Finance also support mobile trading; you can download Meta trader mobile freely at this forex broker. North Finance is very good in customer support; you can access customer support 24 hours 5 business days lively on North Finance live chat.
Furthermore, this forex broker's customer supports is very friendly and helpful. Not only good in customer support, this forex broker is also good in deposit and withdrawal operation time via e-gold. Deposit and withdrawal operation in this forex broker is very fast, almost finished in only five minutes. If you deposit $5000 or more at North Finance, you get free Visa Electron card that you can use to withdraw or shopping in any places in the world that have Visa Electron logo. You don't have to worry putting your money at this forex broker; your deposit above $100,000 is bank guarantees. However, you have to becareful when trading in North Finance at big news is released, this forex broker's server frequently very busy during big news time. North Finance has the good policy for Moslem trader; swap free for Moslem trader in this forex broker. This forex broker offers excellent opportunity to join a profitable business with them as IB (internet broker). North Finance has had IB forex brokers in more than twenty different countries, some of them are at Russia, China, Malaysia, South Africa, etc. In North Finance, you not only can trade forex, you also can trade CFD on futures, stocks, metals.
In conclusion, North Finance can be very considered as a good forex broker. This forex broker can be one of good choice when you decide to start forex trading.

How to Shop For Home Loans

Shopping for Home Loans?
Shopping for home loans aren't as simple as driving downtown to a hypermarket, grab a package of home loan and chuck it into your shopping cart - Then paying at the counter. It involves much processes, and adequate understanding on how things would work best for your life based on your POCKET SIZE. There are 406 Malaysia home loans available in 26 banks across the country and thousands of real estate agents/officers around the country.
Malaysia Home Loan Shopping

1. Start by using WISE Home Loan Calculator. From there, you can get a wealth of updated information regading all of 406 home loans available in Malaysia.
2. Next, calculate your Debt Service Ratio yourself. DSR - Debt Service Ratio is something the bank takes into consideration before approving your home loan.
3. Check your personal finance. Applying for a loan / Purchasing a property takes a lot of money. So before you decide, consider your wallet from now to 30 years later.
4. Remember your fees. Downpayment can cost from 10-20%, and also don't forget the COMMON FEES. You may want to check out EPF Funding too.
5. Check out the market value for your property to identify Margin of Finance. Of course, this could also vary. The best bet is to check with your financial institution providing you the home loan. Margin of Finance can jump up to 95% on certain conditions.
6. Study loan features Before you sign anything or start paying for anything, be sure to study your home loan appropriately. Consult your legal practitioner if you're unsure.
7. Understand House Loan Repayments Click on the above link and read about the repayment schemes available today.
8. See if you're interested in MRTA Mortgage Reducing Term Assurance is something you should consider. Click on the above and see if you're really interested.
9. Know your rights as a borrower. Read more below.

Borrower's Rights & Duties As a smart home loan shopper, knowing your own rights and the right way of doing things is always the key to better shopping experience.

• In any event the contract between you and the financial institution is breached, you may take legal action.
• You have the right to attain accurate information provided by the financial institution regarding any agreement, payment terms and so forth.
• You have the right to be treated without prejudice, stereotypically, professionally and with courtesy.
• You have the right to be consulted of any changes made to any part of your agreement in the terms and conditions area.
• You have the right to access all information that will affect your attainment of home loan.

Article Source: http://EzineArticles.com/1387547

Home Loan Frauds

Are you SCAMMING your Malaysian home loan? Financial scams have been going on since forever. While we'll not be surprised to see Malaysia home loan frauds these days, there are many other fraudulent activities out there which we're not aware of. Getting to know how these criminals bang the table with their heads to obtain extra silvers in their pocket will not only help yourself reduce the risk of getting scammed, but also knock these fraudster's spirits back as they understand consumers these days are much smarter.
But this is home loan scam is our main concern:

1. You, yourself and You Certainly, when you're pinning down your details on a Malaysia real estate application, you might pin down little white lies. Read on about white home loan lies below.
2. Your agent Your agent could be your worst enemy at times. Assuming you do not know much about real estate or property laws, your real estate agent might not advise you on why small white lies are absolutely not permitted, fill out the other half of the application for you.
3. Both you and your loan officer All too often, your home loan officer could just suggest a way of turning things around while thinking that it's within the lending guidelines. Most of the time, no.

Malaysia Real Estate White Lies
A common mistake many people make is that they usually jot down simple white lies about them -- Which in the end get them into trouble because it's considered committing fraud. While many innocent victims fall into this trap because their home loan consultants/real estate agents/loan officers encourage them to do so without their knowledge or fail to advise them on the dangers, there can be a serious damage done.
Is it too difficult to follow the guidelines? Not really. Often, when you're not informative enough about a particular service or person, you tend to jump quickly into professional advice without checking its truthfulness. You know too well that these days, not only loan officers and credit card salesperson but your colleague would not always be truthful to you.
When these lies become LIVE on your sight (get caught), you're in big trouble. Even a small lie can have you:

1. Asked for full payment on your loan/mortgage immediately.
2. Pay six-figure-fines in total damages.
3. Going to jail.
4. Talking to the police already.

Before you fill up forms, always ensure that you're choosing the right home loan package, your Malaysia home loan search can help you find home loans from 26 banks nationwide, over 406 home loan packages. Check out WISE home loan calculator [http://www.fiscal-wise.com.my/FiscalWiseWeb/MalaysiaHomeLoanByWizard.aspx] now!

It's always important to know that you've searched for the correct home loan, ensure your repayment capabilities, prepared necessary documents, run a quick check on Malaysia home loan's advise on Frauds, get to know your loan officer/real estate agent better, understand the home loan package by using WISE home loan calculator, then approach your selected real estate agents or home loan consultants.
Nothing could be better than getting extensive first-hand home loan/mortgage information before you sign the deal. Stick with WISE to learn more about Malaysia home loan, Malaysia mortgages, real estate, property and financial consulting.

Economic Balance in Malaysia After Recession

With Bank Negara Malaysia (herein referred to as "BNM") declaring in the month of September that its Monetary & Financial Developments August 2009, the Malaysian economy faces stable interest rates, demand for financing in the housing industry is sustained and the capital market moderated, it seems positive that Malaysia may be looking at a very positive economic outlook coming 2010.
There were previous speculations about the domino effect this Great Recession has on Malaysia will last about 2-3 years; albeit its heavy political activities and shrewd financial stability mentality that was placed on Malaysians by various mass and alternative media.
Locally speaking, Malaysia is seen to be performing quite well in this recession - BNM's net non-performing loans ratio remains at 2.1% as of August 2009, as many other banks stood at an approximate figure of 3.65%. Deutsche Bank however, was forecasted to a high of 15% non-performing loan ratios (herein referred to as "NPL") for the next 12 months starting October 2009.
The Average Base Lending Rates (BLR) in Malaysia stands at 5.53% on July, decreasing to a low of 5.51% at the end of August.
For more almost a decade now, citizens of the world mainly financiers and political leaders have always craved for economic stability, sustainability and predictability: Even depicted in the G20 summit. But what is the shape of the economy after this recent economic turmoil, and how would we reshape it?
Economy Focus: Malaysia The GDP chart above (by Dept. of Statistics Malaysia) shows a very sharp decline at the expected bottom-out -6.2% in Quarter 1 of 2009. Over the period of time, output for exports have declined, oil price was down to a low of US$48/barrel and the producer price index showed decline compared from January - August 2008 and 2009.
Some of the other exciting figures are also unemployment rates, commodity prices, global stock market prices, foreign currency exchange value and manufacturing output of vital Malaysian exports. Interestingly, the balance of payments figures are depicted as below.
Balance of Payments - Malaysia for 2007 - Q1 2009
According to the Malaysian Department of Statistics,
The current account recorded a surplus of RM28.8 billion (equivalent to 17.8% of GDP) in the second quarter of 2009, down from RM31.4 billion from the preceding quarter (-RM2.7 billion or -8.5%). The decrease was as a result of lower surplus on goods of RM33.1 billion from RM37.0 billion in the earlier quarter (-RM3.8 billion or -10.4%), and services of RM1.0 billion (Q1 2009: RM2.5 billion). Meanwhile, other components in current account showed an improved performance as follows:

• a lower net payments on income account of RM1.5 billion (Q1 2009: -RM3.9 billion); and
• a lower leakage on current transfers of RM3.9 billion (Q1 2009: -RM4.2 billion)

Malaysia vs. Other economies Household debts are still worryingly high in United States, and healthcare is often a concern. It has been said 'worryingly' for many times that Americans are spending too much, wanting a lot of amenities but are not paying enough for it. Consumer spending has dropped, but cost of capital and consumer prices index has increased. This negatively effects the economy as prices will be higher and consumers do not spend as much - Leaving local monetary circulation volatility at a much lower rate.
In Malaysia, banks were having strong capitalization and stable NPL, sustained fund raising volatility in the capital market, gross financing to the private sector was moderated and M3 (broad money) grew at a faster annual rate at 7.6%.

Top 10 Best Personal Finance Books of All Time!

As I was arranging the numerous personal finance books I've accumulated over the years, I couldn't help but wonder how I can put everything together in such a tiny little space. Then I asked myself, if I had a very small book shelf that can accommodate only 10 of these books, which books would I choose? I had to think really hard because I love reading books and I've learned a great deal about life and money through ALL of them. These 10 books are special in that they have completely altered the way I view money and life! They have inspired me to learn more about money and pursue financial freedom! May these same books help you achieve your financial dreams!
Here are Rich Money Habits' top 10 best personal finance books of all time!
#10. 8 Secrets of the Truly Rich by Bo Sanchez
This one is special because it's written by a preacher - and a famous Filipino preacher at that! Bo Sanchez is a best-selling author of inspirational books in the Philippines. This is his first book that openly talks about money, business and investing.
What I particularly like about this book, is that it tackles one of the most critical obstacles in making money - that is, how to reconcile money and religion. Living in the only predominantly Catholic country in Asia, it is very important for me to align what I believe in whether it be on religion or money. Otherwise, I'll just be confused and end up going nowhere.
The book is full of stories on how daily money habits make you rich or poor. It describes the most common perceptions we have about money. We were taught that money is the root of all evil. When we watch our favorite TV shows, rich people are often portrayed as greedy. They only got rich through "drug" dealing or some other "illegal" means. Due to this stereotyping, some us unconsciously don't want to be rich! Who would want to be the "bad" guy in our own soap opera called life?! :)
As a result, there is conflict inside of us. Some of our internal dialogs are
"I want to be rich...BUT not so rich that my friends would hate me and I would no longer have friends." err...who wants to be loner?! :)
Or the most common,
"I want to be rich...and I'm so desperate the only way for me to get rich is by winning a million dollars through lottery."
The great tragedy is never realizing that you don't have to be a crook, or be greedy, or become unfriendly, or win a lotto ticket to be rich - you only need to build rich money habits!
#9. Multiple Streams of Income by Robert G. Allen
This is one of the books I bought when I was in the US. Since I love reading personal finance books, I ordered a bunch of them online. I was able to get them cheaper because I looked under the "used" books section. Surprisingly, most of them are in relatively good condition and look almost new!
The book was my first exposure to having multiple streams of income. For someone who worked as an employee most of his life, I thought I could only earn from one stream of income - my job! I realized having only one stream of income is not a very good idea because there's also only one way money can come to me - through my paycheck!
Having multiple streams of income is NOT necessarily having a second job, or even a third! Multiple streams of income building systems so that money can flow through your life. It means, investing both your time and money to learn how to build those systems.
One way could be through real-estate investments where you get a "stream" of income from the monthly rental of your tenants. Another "stream" could be getting portfolio income like "dividends" or "interests" from your stocks or bonds investments. And yet another "stream" could be from royalties you receive from publishing a book or a music recording if you're a singer. Having a LOT of "streams" where money can come to you is certainly better than relying on just your "job" to make money. The challenge is how to utilize what you have like time, skills, and money to setup these streams of income.
#8. Secrets of the Millionaire Mind by T. Harv Eker
The great thing about the book is it makes you realize what money habits you have developed since the day you were born. It brings out those subconscious thoughts that are hindering you from achieving financial success. Some of the internal dialogs with yourself could be.
"I am not good enough. I'll never be amount to anything financially."
Or you might say
"I'm poor because my parents are poor...and my grandfather is poor...and my great grandfather is poor...so I will always be poor..."
You might not be saying it out loud. You might only be thinking about it. Worse, you might not even be aware of it. And you wonder why you'll not getting anywhere. As T. Harv Eker aptly put it
"...if your subconscious 'financial blueprint' is not 'set' for success, nothing you learn, nothing you know and nothing you do will make much of a difference."
#7. The 4-Hour Workweek by Timothy Ferriss
The book speaks about the "New Rich", a group of people who have the time, money and mobility to spend only 4 hours a week to generate money and live the life they want. The rest of their time is spent on things they love to do like dancing in Buenos Aires, scuba diving in Panama or basking in the Hawaiian sun.
Who wouldn't want to spend only 4 hours of his time working instead of the usual 40 hours a week? Who wouldn't want to have the luxury of time to do the things you really love? Who wouldn't want to take a very long vacation in the beaches of Hawaii while your business is taken care of and money is still coming in?
For employees, it offers practical tips on how to negotiate with your boss for a work-at-home arrangement. It also provides ideas on how to plan your own "mini" retirements so the money is still coming in, without you around. It even discusses how you can "outsource" your life!
The 4-hour workweek is easy to read. The ideas are presented in a simple and uncomplicated manner that you think you're reading a comic book. The book is conversational and funny. Reading it is like speaking with the author face to face. You might even find yourself occasionally laughing at his jokes. (I know I have) :)
#6. Rule #1 by Phil Town
I picked up this book out on a whim when I was at a bookstore in Malaysia. The book explains investing in a very simple and understandable manner. It is not intimidating in any way. After reading this book, it made me realize that I did not need to be afraid of investing. I just need to learn how to do it right.
Rule # 1 is "Don't lose money."
Whether the market is going up or going down, don't lose money. Whether it is a bear market or a recession, don't lose money. Whether you have billions or just a couple of hundred dollars in investment, don't lose money.
The book discusses some of the basic myths about investing and provides simple strategies for successful investing while spending only 15 minutes a week. It tells about the five key numbers that really count when determining the value of a stock or business. It even mentions valuable internet tools and the advantages of managing your own investments to achieve your investment goals.
I know there may be other books on investing out there, but so far, this is the only one I've come across that made me understand the world of investing a little bit better.
#5. The Richest Man in Babylon by George S. Clason
I came across the Richest Man in Babylon from reading Rich Dad, Poor Dad by Robert Kiyosaki. It tells about the ancient secrets of money. The book coined the phrase "pay yourself first". In ordinary terms, it means - SAVING. But it is more than that. The book tells that in any trade you're in, you CAN still "pay yourself first". Once you have "money" in savings, you can then have that "money" work for you.
But how can you save when your little money is not even enough to survive on? How can you set aside 10% of your income when you're living on 110% of it? How do you "pay yourself first" when the creditors are coming after you?
Paying yourself first is certainly not easy. It takes tremendous discipline. That's one of the reasons why it is not popular. But once you get the rich money habit of controlling your money instead of it controlling you, your confidence builds up, you'll think that if you can do this then you can do anything. And as with anything related to money, it touches everything. Your health improves. You become successful in what you do. People will wonder why you're always brimming with confidence. You become the richest man in every sense of the word.
Isn't it better to walk into a store knowing you can buy anything you want because you have the money (saved)? Doesn't it give you peace of mind knowing that if some emergency occurs, you can readily rely on your saved "emergency fund"? Would it be nice to be able to help your family or those closest to you "financially" for a change? That's the dream. And it starts with paying yourself first.
#4. The Millionaire Next Door by Thomas J. Stanley Ph.D. and William D. Danko Ph.D.
The book is based on a comprehensive research on the money habits of millionaires. The results are surprising in the sense that majority of those millionaires are not what we commonly expect them to be. As aptly described in the book,
"These people cannot be millionaires! They don't look like millionaires, they don't dress like millionaires, they don't eat like millionaires, they don't act like millionaires - they don't even have millionaire names. Where are the millionaires who look like millionaires?"
Many of the "next door" millionaires are first-generation. They did not inherit their riches, they built them. Few of them do not spend more than $100 for a watch. Others don't even wear a suit to work! They engage in types of businesses which could be classified as dull-normal. Some are welding contractors. Some are rice farmers. Some are pest controllers. Others are coin and stamp dealers.
What separates the "next door" millionaires from the rest is their money habits. They are frugal in nature. They value money. They invest at least 20% of their income. They even have a "go-to-hell fund" which can provide for their expenses for at least 10 years without working at all.
I think the most important lesson from the book is not that we know who the actual millionaires are, but the realization that it could be YOU! If they can do it, so can you! It's time to build your own rich money habit and be the "millionaire next door"!
#3. Your Money or Your Life by Vicki Robin and Joe Dominguez
I bought this book out on a whim. I was actually looking for the book "Outliers" by Malcolm Gladwell when I saw this book at 20% off.
The book tells about managing not only your money but looking at it in totally different way. Your money is only part and parcel of what your life is. There is also time. There is also your dream! What do you enjoy most? How do you spend your money? What do you do with your time? Would you still do what you do even if you have all the money in the world?
The book emphasizes managing the resources that you have like money and time. It offers very specific tips like monitoring your spending and whether each of those is contributing to your goals or not. It also has some ideas on how to identify exactly what you like to do and manage both your money and time so you can do more of what you love to do and less of what you don't like to do. It even has some charts to help you picture out and plot where you are and when your freedom day will be.
I think the main message of the book is not to choose money over your life or the other way around - it is to have BOTH.
#2. Rich Dad, Poor Dad by Robert T. Kiyosaki
As mentioned in my personal finance story, this is one of the books that made me realize I really need to develop rich money habits to achieve financial freedom. The book is a story of growing up learning about money from two different dads: one is rich and the other one is poor. The story unfolds to describe the different money habits of the rich dad and the poor dad, each one producing a different financial result.
The book makes the very complex world of money and business seemingly simple. It is so simple that the ideas can be explained to a child using only sketchy drawings. The drawings illustrate how cash flows from your pocket to the bank when you pay your bills, and how it flows from your company to you when you get your paycheck.
What you do with the money after your receive it determines whether you become rich or poor. Do you use the money to buy assets like real estate investments or setup businesses? Or do you use it to buy liabilities like a brand new LCD TV in 12-easy-monthly-payments-with-zero-interest!
The reason I liked the book is because it inspired me to become better and to view business and money in a totally different way. It expanded my understanding of how money really works! Most of all, it gave me the confidence to dream again!
#1. Think and Grow Rich by Napoleon Hill
Think and Grow Rich is one of the first books I've read about money. The main message of the book is that you have to "think" about money first before it becomes real. It is a direct translation to the phrase "what your mind can conceive, your body can achieve". When you really think about money and you have this "burning desire" to make it real, all the universe conspires to build the means to bring it to you.
Money is, first and foremost, only an idea. It is not real. The money you hold when you buy a bag of grocery is only as real as the "mutual" agreement you have with other people that the paper you're holding is worth something of value equal to that you're buying.
The book doesn't say "Work Hard and Grow Rich". Working hard means different things to different people. For an employee who doesn't like what he's doing and only get paid very little, everything is "hard work". For someone who love what he does, "working hard" is not in his vocabulary.
As Henry Ford said,
"Thinking is the hardest work there is, which is probably the reason why so few engage in it."
There you have it! Rich Money Habits' top 10 best personal finance books of all time!
P.S. How about you? What are the best personal finance books you've read?
Cheers!
Allan Inocente
Rich Money Habits

Personal Finance Online: Top 5 Financial Goals Examples

When considering budgeting, financial goal setting is one of those rare activities used by the wealthy and successful who are well used to using the tools available for managing their personal finance online. Information is easy to find because of the breadth of social media platforms and their accelerating usage amongst the money wise. Sometimes the issue is not what you know it's what you do with that knowledge - from Belfast, Ireland to Kuala Lumpur, Malaysia.
Financial Goals can obviously be anything, from short term little goals like saving for a guilty pleasure, through to big goals like becoming debt free, but it can sometimes be a struggle to know what to aim for. Financial goals examples are good places to start when planning personal finance online because they can be copied, emulated or modeled, and since this series is concerned with every aspect of personal finance online, we researched the top financial goals from the wide variety of websites providing insight on personal finance online, and present below the top 5 financial goals examples.
1. Clean Up Credit History
The number one entry in our financial goals examples, is clean up credit history. One of the primary weapons in managing personal finance online is the credit or FICO score. Contrary to myth, there is no single 'score' or 'rating' -these are different calculations by lenders on the basis of how much profit they can forecast from you. Common ways to clean up a personal finance credit history are to check your report from credit reference agencies, change bank accounts, close unused credit card accounts, detach from people you've been linked to in joint borrowings, and ensure you have standard things like a land line and entry on the electoral register. These can all change your profile after 6 months has passed.
2. Create A Workable Budget
The number two entry in our financial goals examples, and one which is particularly relevant to managing personal finance online is to create a workable budget. The central principal in any budget is understanding where all the money goes - specifically, and then making choices and decisions about how to use the available funds - within your means.
there are many personal finance online software tools, budget worksheets, family budget spreadsheets, all available to assist in setting these financial goals.
3. Eliminate Bad Debt
The number three entry in our financial goals examples is to eliminate bad debt. Eliminating bad debt is easy. Pay the minimum on all cards and loans except the most expensive interest rate, to which you allocate as much of the budget as possible. When that card is paid off, transfer all that budget to the next expensive, and so on until they are all gone. Other options include debt management plans, debt counselling services, or insolvency remedies like bankruptcy of voluntary agreements. The hardest action in eliminating bad debt is taking action to start, the rest is pretty straightforward
4. Create An Automated Savings Fund
The number four entry in our financial goals examples is an essential part of personal finance budgets, for either a rainy day, an emergency or some future purchases. Sometimes called income smoothing, it involves paying yourself first out of money coming in, before paying the expenses and bills. Simply divert a sum the same day the paycheck clears at the bank - you'll never notice it gone, and build up your reserves. You can keep track of how it is building by including it within the budget section of a personal finance online tool, or personal finance budget software.
5.Start A Business
The final and possibly most lucrative of our financial goals examples is to start a business. This is easier than it sounds and can be done even if you are in a full time job. It is really easy to start an online business, create knowledge products and sell them online. All this secondary income has huge tax advantages, and if you want to get serious about it full time there are plenty of coaches, like me, who have done it and can help.

Islamic Malaysia - Is Malaysia Becoming a Hub For Islamic Finance in Asia?

Yes, Malaysia can be already dubbed as a center for Islamic finance in South East Asia, if not Asia.
Recently, Malaysian Islamic banking groups launched The Corporate Murabahah Master Agreement (CMMA) to boost Islamic finance money market. This is to ensure the market remains vibrant, volatile and nice-to-jump-in. To put it in layman's terms, CMMA is a standard document for deposit taking between financial institutions and corporate customers; where you can see the standard agreement would specify a common modus operandi for Islamic financial institutions in accepting deposits via commodity Murabahah.
But an interesting question quotes: "Do halal financial instruments hold up better than conventional and traditional bonds and stocks?" Or to put it in another way, "Is Islamic finance much safer than conventional finance?"
Islamic Finance: The basis, standard and core concept of Islamic finance has always been in the 'shared risk' area. As a start, you might find this more plausible than conventional trading, since the concept of Islamic finance itself calls for collateral backing by an individual or an entity in the middle of a financial instrument (more famously known as "Sukuk"). Sukuk is an Arabic term for "financial certificate."
Although there may be some arguments to whether many Islamic financial products are structured using LIBOR (London Interbank Offered Rate), a benchmark or reference rate for short-term interest rates worldwide calculated daily), there is no doubt to one thing - Islamic financial models (think concept) disguises its risk profiles to a certain extent. Because ruling on Shariah-compliance has been heavily emphasized and focused, there are a few factors that we could 'miss' - The more important factors to determine whether or not it adds positive value to an economy's financial system.
BUT, halt. That's generalization. Doesn't work this way in all ends. For a country like Malaysia, an economic stronghold in Asia in Islamic finance growing rapidly as an Islamic hub, authorities have considered many ends of conventional banking before introducing sophisticated finance products that are Islamic-based. They have one major problem - "Non-compliance with Islamic principles".
The Asset Way: One of the most famous ways of going about 'interest rates' (as Islamic principles disallow charging of interest rates) is to sell assets. This method has been used for years and there are many ways to go about it. Let's start.
Mr. A wants a RM10,000 personal loan. In conventional banking, the bank lends Mr. A the requested amount of money and charge an interest rate of say 1% per annum. Repayment 5 years. For Islamic financial products, that's not Halal.
So what they do is, the financial institution will take a readily available asset, price it above the agreed rate, sell it to Mr. A and immediately requests that Mr. A sells it back at the 'loan price'. So the bank may sell it to Mr. A at RM20,000 and he will have to sell it back to the financial institution immediately at RM10,000.
Shariah-compliance: Islamic financing has taken a brand new approach in introducing new methods of handling conventional banking; in its essence to serve its own population with compliance to its dos' and do nots'.
Can Islamic financing in Malaysia thrive, with its introductory of what some people call 'pseudo-Islamic Shariah'? Should we look into the ways of what Muslim scholars introduced to us as another way through conventional banking so that we're more secure?

KL Management Services has been restructured into a Chartered Accountant company in Malaysia, now servicing corporate clients from small to large for corporations. KLM is one of three professional accounting firms in Malaysia licensed, experienced and capable to provide financial advisory services.

Property Financing - Know Your Borrower's Rights

Many have not realized their rights and responsibilities when it comes to property loans or financing. The excitement of getting a mortgage could sometime lead to the ignorance of understanding their rights and responsibilities. Inadequate knowledge of the rights as a borrower may later causes to unnecessary stress, waste of time and effort dealing with the legal department. As for not knowing your duties, your property might be at stake. Get to know the rights that you have as a borrower.
Borrower's Rights
• A borrower has the right to gain access to all information concerning the loan. Buying a house is not like getting a new pair of shoes. It costs a long term commitment and you have the right to know every detail about your property loans.
• A borrower has the right to be treated as a customer with professionalism, manners and without prejudice. Regardless of any events, as a client, you have the right to be served professionally and with manners. This is a common practice of any business deal and property loan is the same as any other.
• A borrower has the right to know any amendments to the contract of his loan. If there happened to be any modification or adjustment to your loan's terms and conditions, the banks should give you heads up as you have the right to know.
• A borrower has the right to have precise information on time, every time. At all times, you need to ensure that the information given regarding your home loan is correct and you deserve to question if it is otherwise.
• A borrower has the right to impose legal action if the contract is breached. Most importantly, you have to know that you have the right to bring them to justice if it happened to be a breach of contract during the period of your loans. As a borrower, you are also obliged to fulfill your responsibilities regarding your loans. Borrower's Responsibilities
• A borrower is responsible to comprehensive understanding of the contract loan. It is vital to fully understand the terms and conditions of your loans. This will prevent you from getting tricked by irresponsible parties.
• A borrower is responsible to monitor the loan details at all times. This is to ensure both parties are on their right path and to avoid unpleasant event of any breach of contract.
• A borrower is responsible to find out about all information of their loans. It is your duty to ask to get the clear picture of your loan. The banks might have explained, but you can still enquire for anything uncertain from your side.
• A borrower is responsible to make the payment on time, every time. Last but the most important of all, you are responsible to make payment in time. There are many channels that you can get help for any inquiries concerning you property loans. You can always count on the loan officer for assistance and advice or searching the internet for additional information.

Finding Good Hospitals in Kuala Lumpur, Malaysia

Out of many methods, visiting new places and knowing about different cultures is a part of refreshment. So, if the primary goal is to get an idea of some new places and to escape from a chill weather from some of the cold countries, then visiting Kuala Lumpur can be a good choice. Located in between Titiwangsa Mountains in the east and Indonesia's Sumatra Island in the west, Kuala Lumpur has a tropical rainforest climate which is warm and sunny, along with abundant rainfall
Kuala Lumpur has the world famous Petronas Twin towers. Along with fun, it is always better for any foreign visitor to have first hand information regarding the medical facilities available within the city. As visitors will be going to various locations which are in different corners of the city, it is better to know which hospital offers which kind of services. This paper lists the best of the best hospitals available within Kuala Lumpur city, suitable for foreign visitors.
It is a must that the hospital management should understand the difference between patient expectations and its perception of patient expectations. The closer management is able to evaluate true patient expectation they better they are able to meet these expectations. The following are some more points considered in listing the top hospitals.
· Can the hospital monitor the difference between the service quality specifications and the actual service delivered?
· Does the hospital meet patients expectations of service quality?
· Are they give a feel of reliable, responsive and empathetic to patients?
· Do they focus on medical quality and its good outcomes?
· Do they concentrate on patient safety and security?
Considering the above mentioned factors and depending on the location of emergency or medical treatment needed, a list of top 5 hospitals in Kuala Lumpur providing service which is suitable for foreigners are listed below.
HOSPITALS CHART
Hospital Name, Location
FEATURES
Hospital Kuala Lumpur (HKL), Jalan Pahang
1. Have 49 different departments and units. These include the administration & finance department, the pharmaceutical department, training and research, 27 clinical departments and 12 clinical support services
2. HKL is now the largest hospital under the Ministry of health of Malaysia and is considered to be one of the biggest in Asia
3. It is a government tertiary referral hospital, located on 150 acres of prime land with 83 wards and 2302 beds
Damai Service Hospital (DSH), Jalan Ipoh
1. Established in 1981, the Damai Service Hospital is a premier Malaysian hospital group offering secondary level healthcare
2. It was built with a vision of providing "Quality Healthcare at Affordable Cost to Everyone" in every aspect of its services
3. It has a full range of diagnostic and therapeutic facilities capable of treating up to 95% of the spectrum of illnesses
Pantai Holdings Hospital, Jalan Bukit Pantai
1. At Pantai, the primary focus of essence will be the patients
2. They remain the most important element in the structure of Pantai, and the centre of all their activities
3. The hospital declares itself to be in first place in terms of services offered
Prince Court Hospital, Jalan Kia Peng
1. The patients will enjoy the superior care, expertise, and facilities that make the hospital one of the top medical centers in Asia
2. At Prince Court, the management is committed towards providing the highest possible standards of patient care and services
3. They provide a comprehensive range of family centered healthcare services, which are underpinned by clearly defined Centers of Excellence
Tung Shin Hospital, Jalan Pudu
1. Was founded in 1881
2. In 1894 it was converted into a non-profit organization with main objectives to render health services to general public
With this list you are now more prepared for a medical emergency in Kuala Lumpur.

Douglas M. Fey

Fey Insurance Services morns the loss of Douglas M Fey who served those in our agency as an owner, brother and uncle.  We will greatly miss him and his warm spirit around the office.  Below is his obituary.

FEY, Douglas Michael age 64, went home to be with the Lord on Friday, September 27, 2013. He was born on December 30, 1948 in Cincinnati, OH, the son of Ralph N. Fey and Ruth Yvonne Curpen "Bonnie" Fey. He attended school in Oxford graduating from Talawanda High School and later attending Miami University in Oxford where he was awarded a Bachelors of Science Degree in Business Administration in 1971. While at Miami he was a member of Beta Theta Pi Fraternity where he served as Chapter Treasurer. Following graduation he entered the U. S. Army serving in the Finance Branch in the United States and for 18 months in South Korea. Upon completion of his military service he returned to Oxford to begin working in the family insurance business with his father, older brother, his sister-in-law and later his nephew. Doug was Vice President of Fey Insurance Services. He loved to fly and held a commercial instructor's rating, and at one time he owned a vintage 1946 Piper Cub which he hangered at his family's farm. In addition, he was at various times a member of the Oxford Presbyterian Church, the Oxford Kiwanis Club, the Oxford Rotary Club and the Oxford Country Club. On October 17, 1993, Doug married his beloved Paulette, and they moved to Lebanon, OH where he lived the rest of his life. Doug and Paulette loved to travel and spend time with their children and grandchildren. He leaves his brother, Thomas Curpen Fey (Cathy) of Oxford, Ohio, Paulette's daughters Amber Mitchell (Jon) of New Carlisle, Ohio, Kim Martin (Zach) of Loveland, Ohio and Laura Hockett of Lebanon, and thirteen grandchildren including Samantha Mitchell, Milo Mitchell, Ulyana Mitchell, Ilia Mitchell, Anastasia Mitchell, Slava Mitchell, Olga Mitchell, China Martin, Nova Martin, Cherokee Martin, Zion Martin, Ivy Hockett, a niece, Elizabeth Fey Mundy (Al) of Cincinnati, Ohio and nephew, Brian Douglas Fey (Kate) of Cincinnati, Ohio and their children. He was preceded in death by his parents. Visitation will be held on Wednesday October 2nd from 10:00-12noon at Oswald-Hoskins Funeral Home with a service immediately following. Interment will take place in Lebanon Cemetery. Arrangements were made by Oswald-Hoskins Funeral Home. Online condolences may be sent to the family by visiting www.hoskinsfh.com

Getting Life Insurance is Easy and Affordable!

  September is Life Insurance Awareness Month. You’ll probably see TV commercials and magazine articles talking about why this coverage is so important. And you probably already know it’s important. But that doesn’t mean that you’ve got your policy set up yet!

  The Life Foundation says that only 62% of people who believe they need life insurance, actually have it. And even those that have it only carry enough to replace their income for 3.6 years. If you have young children to support, that is simply not enough time. If you're skipping life coverage all together, then you are putting your family's well being at risk.

  So why do people wait too long to purchase life insurance? The Life Foundation also says that 86% of Americans say they haven't purchased it because it's "too expensive”, yet overestimate the cost by more than 2 times!

  Life Insurance rates are based on a number of factors, including age, health conditions, and smoking status. By not smoking and purchasing when you're younger, you can save substantial money. In fact, many term life policies are less than $50 per month!

  Don't delay! Call the office at 888-867-2866 and set up an appointment with our life insurance specialist. Bring information on your annual income, as well as any debts (like your mortgage). We’ll give an accurate picture of how much coverage you need as well as different ways to make it affordable.

Now Get Life Insurance Online!

  For those who want a quick, online method of getting life insurance, SAV-ON is proud to announce a new partnership with EQUOTE to provide an easy-to-use online platform that requires no medical exam. It's the simplest and quickest process in the industry!

  Go to www.sav-on.com to find out more about EQUOTE, or call us at 888-867-2866 to set up an appointment.

The Rise and Rise of Malaysia Property Prices

According to statistics from the National Property Information Centre (Napic), approximately 1,170 units of residential property costing RM1 million and above exchanged hands in the first quarter of 2010. This is a significant increase of more than 50 per cent compared to the 750 units sold during the same period last year. Excluding residential housing transacted between RM50,000 to RM100,000, all the other six price categories between RM100,001 to RM1 million witnessed an increase in transaction numbers.
This situation is not entirely surprising though, and according to Malaysia property consultants polled, it has a lot to do with consumer confidence. Although the world has yet to completely come out of the financial rut started by U.S. sub-prime problems, the matter of the fact is that Malaysians have become richer - whether it is because of the stronger Ringgit or the red-hot local stock market. Personal incomes have also increased and hence, people are willing to put down more money on big ticket items.
The increased confidence and stronger purchasing power are motivating first-time home buyers to snap up entry-level properties, existing home buyers to upgrade to bigger homes and the higher-income group to purchase for investment. Naturally, the easy financing arranged by property developers with the banks and record-low interest rates of up to Base Lending Rate (BLR) minus 2.5 per cent are supporting factors as well.
Although the average price of houses in Malaysia have creeped up a mere 37 per cent in the last 10 years based on the national Housing Index, this number does not apply to major cities like Kuala Lumpur, Johor Bahru and Penang.
In fact, it was only in June this year that a local corporate figure made headlines for paying a whopping RM38 million for a triplex penthouse unit at The Binjai On The Park in Kuala Lumpur City Center. Located on the 42nd-storey of Tower B, the buyer was said to be attracted by the 360-degree unobstructed view of the beautiful KLCC skyline, similar to London's One Hyde Park, according to newspaper reports. At RM38 million, the price for the 14,300 square feet private apartment works out to almost RM2,700 per square foot.
Will Malaysia property prices continue rising at its current blistering pace or will the prices collapse, is anybody's guess. While countries like China and Singapore have already begun implementing new housing policies like higher down-payments and property gains tax, and also increased interest rates to rein in property prices, the Malaysian government has not shown any signs of concern. Instead, Prime Minister Najib Razak announced stamp duty exemptions for first-time home buyers and zero down-payment for residential property costing up to RM220,000 during the recent Budget 2011 in October.

GST Implementation in Malaysia - The Argument

There were many responses when the Malaysian government first announced the Financial Budget for Malaysia, year 2010, both good and bad. But when they were undecided about GST, it sparked more conversation on whether it'll benefit the Rakyat, or further threaten poorer communities in Malaysia.
What goods GST covers
As proposed by our dear government, GST covers all types of goods & services sold to Malaysian & non-Malaysian residents (therefore consumers) except for a common commodities such as rice, flour & sugar.
This goes to mean: Whenever you walk into your favorite hypermarket with the family to get some groceries in the future, you will be charged additional ~% (the proposed additional 4%) on top of your bill except for certain controlled items.
Further, Malaysia's main revenue shouldn't just live off petroleum. In other words, we shouldn't put all eggs in one basket because petroleum revenues have risks of its own, seeing that it's a natural resource.
What reason did they give? More funds for development and expenses.
How much would they probably get? RM1 billion (RM1,000,000,000) per annum in estimated rounded-up revenue.
Will it hurt the poor & middle class?
To a certain extent, it will somehow affect pockets of middle and lower income group Malaysians.
The arguments:

1. Recent price hike in petrol, prices of commodities have increased drastically. And now another one called GST?
2. Income tax brackets for high earners aren't as 'expensive' as middle-to-low income groups.
3. The Malaysian government has saved approximately RM2 billion (RM2,000,000,000) by lowering fuel subsidies - What's the take on GST now for lower income groups?
4. GST is tax on SPENDING. Basically, everything from parking fees to purchasing mattress. Even with GST-exempted items, this would still hit lower income groups in Malaysia.
5. Private sectors aren't paying much to Malaysians - Other more developed countries such as Singapore could take this hit because wages & salaries are much higher.
6. Other countries such as Britain, India, Hong Kong, Japan and Singapore has GST - Doesn't mean GST has to be implemented in Malaysia. Their economic status and way of gaining revenue varies from Malaysia. (GST is also called VAT - Value Added Tax in other countries)
7. Inflation may happen. Prime Minister Mr. Najib has guaranteed no inflation - But with the introduction of GST, the chain of 'passing the cost' will end up usually at the hands of consumers.
8. Corruption isn't a rare thing in Malaysia - So businesses has already included 'corruption prices' in goods & services. How does that not reflect additional costs to consumers?
9. Out of inflation pressures, higher prices for goods & services are sought.

Prime Minister Mr. Najib has promised Malaysians that they will be tabling a public discussion on GST (called the GST Bill) on December. There are also several upsides that could be seen - But until Mr. Najib tables the meeting on GST Bill, we shouldn't be skeptical of anything yet.
Other side of the GST story
GST has been said to promise a few things:

1. Implementation will not be abrupt. It will be a slow & steady tax preparation so that individuals and small businesses will not be adversely affected.
2. It will replace the 10+5% services and goods tax. This means taxes are lower now - Consumers need not pay more for one area, but it's divided into many other source of 'tax' payments.
3. GST rates are promised at 4%, out of the normal 10% or 5% charged in restaurants.
4. Implementation will not occur until middle to late 2011 or 2012. Planning time is essential to not put 'inflation pressure' on small businesses.
5. Government's coffers will increase. This will enable further development and budget control to the country, other than relying just on petroleum or income tax revenues.
6. Tax when consumed, not when earned is much better. It allows better control. Spending influences will be "Careful" and "More controlled" when purchasing on higher prices are made rather than "taxable incomes" generated from work.
7. It's a broad-based tax system. Some items may be slightly more expensive & cheaper. It's not a overall standardized taxation method.

Your opinion on GST
Of course, there are many pros and cons of the new GST system - And the implementers should look more intricately into all income groups, balance their sheets and understand what are the effects first. While we can only propose so much, there's only so much we can do.
Here are some of the 'preparation techniques' the tablers of the GST Bill can adopt:

1. Be intricate with details: Tax is a complicated subject, like a science of its own. If you make the subject complicated, it may lead to more misunderstandings and later, more arguments.
2. Introduce 'layman terms' for further understanding. Giving examples always help. Examples on implementations always help. Tell a story to the public - And make it make sense to them.
3. Use other form of publicity media: Tabling the GST Bill on national newspapers and mass media isn't going to cut it. Find other means such as introduction campaigns Malaysia-wide.
4. Engage community understanding: Allow certain private and public (individual or company) figures to table talks and debates on GST Malaysia-wide. This encourages engagement and allows more problems & solutions to be seen.

The Malaysian government or finance department has a long time more (approximately 15 - 20 months) to table talks around Malaysia with regards to GST.

Tips for Foreigners Buying Properties in Malaysia

Tips on Investing Properties In Malaysia
If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.
Financing your property
As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.
Restriction in Disposing of your property
You are not allowed to sell your property less than 3 years from the date of your purchase.
Number of units you can own in Malaysia
As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.
Remitting money into Malaysia
If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.
Taxation of your property
Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.
Minimum purchase price allowed to purchase
As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.
Types of properties you are allowed to purchase
You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.
Fees involved in purchasing a property
You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.

Financing A Property Investment In Malaysia

Not many of us have spare funds that we can use to pay for the purchase of a property in one lump sum. Moreover, even if we did have those funds, we may want to put it into other uses such as playing the stock market or expanding our businesses in order to gain other financial benefits. Hence to purchase a property, we have to depend on loans or overdrafts. This fact is well recognised as you will see temporary offices of banks and finance companies set up in property developers' sale offices to facilitate such services.
What are the sources to finance a property investment in Malaysia? This article will seeks to provide you with the answers. However, what is stated in this article should be taken as a guide only. It is advisable for you to check with your financial institution for the specific terms and conditions prevailing at the time of taking the loan.
The sources of financing of property purchase in Malaysia are:
1) Commercial banks and licenced finance companies. One of the most common source of mortgage finance is from either local or foreign banks in Malaysia. However, there has been a growing trend of other financial institution such as insurance companies jumping into the mortgage bandwagon.
2) Bank Simpanan Nasional (National Savings Bank). This bank provides housing loans but it is selective as to whom it gives those loans to. It provides loans for property costing RM100,000 or less. The applicant should be a Malaysian citizen, aged between 18 years and not more than 55 years upon date of the loan maturity.
3) Malaysian Building Society Bhd (MBSB). This is the only building society in Peninsular Malaysia which gives out housing loans. It has been doing so for many years. Only Malaysian above age of 18 years are eligible for the loans but the loan must be for houses in Peninsular Malaysia only.
The following are only a few sources to finance a property investment in Malaysia. Different sources will have their own terms and conditions. Check with the respective institution for detail before signing the agreement.

Why You Should Consider Putting Your Finances Into Natural Rubber

Natural rubber is an alternative commodity that, if used properly, provides a solid source of long-term cash flow. Certainly, at present we use rubber in so many areas of our lives that many of us often forget about its value. You would probably be stunned at just how widely used it is!
Natural rubber, aka "India Rubber", is cultivated in countries around the world like Malaysia, Indonesia and Thailand. The weather in these nations is perfect for the growth of rubber. Rubber has grown to be more and more essential in recent times, which has led a number of people to compare this alternative commodity to gold.
The reasons to invest in India rubber as a commodity are extensive. If someone notifies you there's no cash whatsoever to be made from the natural rubber marketplace, they are 100% incorrect. This just isn't the case at all. The market for rubber has experienced a whole lot of growth over the past decade - particularly in the last few years. This superb growth is the reason a large number of people are starting to invest.
From a business viewpoint, you really don't have to spend too much money on creating your own private plantation of India rubber; though if you truly want the best you will need to pay a lot of money or capital for everything to operate properly.
There will always be a need for natural rubber. Don't believe me? Then you should have a look around your property and then determine simply how much natural rubber there is being employed. A number of household appliances demand natural rubber to operate and, obviously, so do vehicles. Ponder, just for a second, how many tyres are built world wide every single day.
Stemming from this massive requirement for natural rubber, there's a lot of capital to be made in meeting this high demand. There have been studies that declare that contrary to other natural resources like gas and fossil fuel, India rubber won't ever be depleted so long as the resources are preserved competently. Indeed, if the buyer helps to ensure that everything is farmed sustainably then they are virtually guaranteed a non-stop source of rubber, which, obviously, means a great long lasting pay off.
Also, making an investment in natural rubber a very good idea for individuals that want to know they're doing something which is honorable. What I mean is you will be assisting the local neighborhoods in East Asia. It is not just the workers who reap the natural rubber that you will be aiding with your investment decision. You can easily make use of local individuals to act as security for your property along with the trees themselves. By investing in the rubber market, consequently, you are essentially serving the local community. This is certainly something that a large amount of many people relish. So, to summarize, the rubber industry is an amazing area for investment. It's most likely especially financially rewarding and is morally sound. So what are you waiting around for? Be certain to make an investment promptly!

Islamic Banking - Key Differences of Components Within a Financial Statements of an Islamic Bank

Let us look at the key differences in presentation of financial statements between conventional an Islamic banking.
Statement of Financial Position (Balance Sheet)
In conventional accounting, the balance sheet has these few components, namely assets, liabilities and owners' equity. In Islamic banking, there is one additional component called "equity of unrestricted investment account holders".
In conventional banking, an asset is defined as an item with future economic benefit attached to it regardless whether there is legal control by the reporting bank. For Islamic banking, however, an item can be taken as an asset only when the Islamic bank has legal right to hold, use or dispose of the item.
The other unique feature is the "equity of unrestricted investment account holders". This additional component is to satisfy the set of customers who invest on the basis of mudarabah which calls for any losses to be borne by the investors (the customers themselves). It is therefore, important to disclose sufficient information to demonstrate the measures taken by the bank to ensure that the interests of this set of customers are considered as part of the strategy of the bank. In conventional banking, they will be treated as liabilities instead.
There are 2 forms of mudarabah contracts:-

1. Mudarabah Mutlaqah - This is the "unrestricted" mudarabah contract whereby the capital provider/owner allows total freedom to the bank to use the capital for its projects without conditions, specifications, restrictions or limits. The bank is free to enter into any trade agreements, whether normal or deferred or leasing basis, using the owners' capital. This form of mudarabah is typically used in replacement of the conventional fixed deposit product for retail customers.
2. Mudarabah Muqqayadah - This is the "restricted" mudarabah contract. The bank is given certain parameters (restrictions and conditions) on how to use the capital provided by the owners.

Statement of Changes in Restricted Investments and Their Equivalent
This is the statement to report the use of mudarabah muqqayadah investments whereby the bank is to undertake to use the funds for specific investments. This pool of fund must be separated from other funds as the returns from this fund will be shared among this particular group of investors.
Apart from the returns or losses for the group of restricted investors, the statement should also report profits or losses before deducting the investment manager's share of investment profits/losses. The bank's share of compensation as the investment agent is also known as mudarib.
Statement of Sources and Uses of Zakat and Charity Fund
This is required only when the bank established a zakat and charity fund whereby the bank acts as a fiduciary of that fund. The bank is responsible for collection and distribution of all or part of zakat and charity funds.

Is Legislation in Malaysia Sufficient Post Enron & Worldcomm?

Abstract
Directors being pillars of corporate governance (Cowan, 2004) should at all times act honestly and use reasonable diligence in the discharge of their duties. This is more so in light of recent major corporate issues like ENRON & Worldcomm in the United States and the Transmile case in Malaysia. In essence directors are agents of the company and as agents, they owe a duty of trust to the company and shall do their utmost to put the interest of the company first before personal ones.
Cowen (2004) wrote that since directors are agents of the company, they are accountable to shareholders and to stakeholders in various guises. It is also clear that as a custodian of something that does not belong them, directors owe a fiduciary duty of care to safeguard the company's assets and maximize returns for shareholders and to ensure that the other stakeholders needs are met as well. The principle that a company is a legal entity by itself and separate from its shareholders, directors and managers also lent to the need for directors to act honestly and diligently in the position that they are entrusted to.
1. INTRODUCTION
The statement in Section 132(1A) of the Companies Act 1965 in Malaysia states that a director of a company shall exercise reasonable care skill and diligence. Section 132(1) of the same act further states that a director of a company shall at all times exercise his power for a proper purpose and in good faith in the best interest of the company. The statement is more obvious when seen in the context that a company is a legal entity and it exists independently from both shareholders and staff. Playing the role of the middleman, directors are the link between the providers of capital and the company together its operational management team.
However, it must be noted that a director can also be a shareholder because although physically one person, the director plays the role of two distinct legal identities. This principle of separate and legal entity between the company and shareholders was first established in the landmark case of Salomon vs Salomon & Co. Ltd.(1985) where the term "Veil of incorporation" was established.
Fok (1996), mentioned that a director is a person elected by the shareholders or appointed by the board to participate in management of the company. It goes without saying then that directors should safeguard the shareholders' investment in the company and at all times act honestly and use reasonable diligence in the discharge of his duties to shareholders. Cowen (2004) wrote that since directors are agents of the company, they are accountable to shareholders and to stakeholders in various guises. It is also clear that as a custodian of something that does not belong them, directors owe a fiduciary duty of care to safeguard the company's assets and maximize returns for shareholders and to ensure that the other stakeholders needs are met as well.
2. NEED FOR DIRECTORS
Directors are stewards of the company and who provide the company with leadership, guidance and directions. Directors of a company would include the following positions or designations;
• Managing Director
• Executive Director
• Chairman
• Independent non-executive Director
• Non-independent no-executive Director
All companies in Malaysia are required to have a board of directors and the minimum number is two. In essence the two originating directors of a company would most likely also be the shareholders as well. It is also common for shareholders to continue to hold office as directors and the board to be filled with trusted associates and relatives. Therefore we tend to take the issue of due diligence and honesty on the part of directors as a non-issue. Why would someone cheat themselves or their relatives?
However, when a company grow and it attracts capital apart from the original shareholders, the responsibilities of directors to act honestly and with proper diligence cannot be taken for granted any longer. They are now working for others rather than just themselves or family members and the need for them to act honestly and diligently is quite real. In most countries, specific laws relating to companies are enacted to govern the administration of such companies and the role of company directors is usually part of the enactment. In public listed companies this becomes even more pronounced as public's funds are involved.
3. FRAMEWORK GOVERNING DUTIES OF DIRECTORS
3.1 Legislation and Corporate Governance code.
The Finance committee on Corporate Governance in Malaysia wrote that every listed company should be headed by an effective board which should lead and control the company. Directors have a dual role of both leadership and control. Some of the duties of the directors include strategic planning, managing risk, ensuring internal control compliance, reporting to shareholders on the affairs of the company and guiding the company in achieving the objectives of the company. In smaller companies the directions and actions of the company usually mirrors that of the owner or major shareholders. In larger companies and public listed companies there are often no correlation between the values and personality of shareholders and the action that the company takes.
Shareholders are often passive investors and have little or no understanding at all about the operations of the company. In order for the company to get the public to invest in the company, the board of directors must act honestly and diligently as the shareholders rely on them run the company properly and provide shareholders with adequate returns on their investment. Directors must ensure that all shareholders are treated fairly and not just the significant or majority owner(s). Directors also do not need to report on a daily basis to shareholders so it is important that directors act professionally, with proper diligence and honesty.
To safeguard shareholders various provisions were made in laws related to duties and responsibilities of directors and in particular of listed companies. For example; Companies Act 1965 of Malaysia including sections to prevent bankrupts from acting as directors (Sect (125(1), restraining certain persons from managing companies as directors (Sect 130(1) ) and the disqualifications of directors of insolvent companies (130A(1)). Similar provisions exist in company enactments in most countries. There are also adequate provisions in the Penal code to prosecute director for not acting honestly and such provision related to the agency relationship between the directors and the company. For example, Section 409 of the Penal code in Malaysia deals if criminal breach of trust which applies to directors as well as agents in general.
Some companies also have provisions in their memorandum or articles of association which provides for the appointment of directors who are required to hold a specified numbers of shares as prequalification for board membership. In Malaysia, Section 124 of the Companies Act 1965 states that if the articles of association of the company requires that a directors must hold a specific number of shares to 'qualify" as director. This is to ensure that the value of other shareholders are looked after since the director, as a shareholder himself, will have every reason to discharge of their fiduciary duties and maximize shareholders funds.
However, not all issues can rely on legislation to ensure that directors act in the best interest of shareholders. Some issues are caused by director's lack of dedication or capability and this brings us to the issue of accountability.
3.2 Sense of Accountability
Sometimes directors fail to achieve shareholders or company's object for reasons which may not come under any legal purview. Sometimes directors fail just because of attitude or ineptitude or both. Cowan (2004) commented that given that directors are acting on behalf of the company's owners and it is clear that the first level of accountability is to the shareholders. Just as other employees can be terminated by the company due to poor performance and directors too can be terminated by shareholders at shareholders meetings.. Removal of directors can be touchy affairs but the one can rely on provisions in various company laws and acts to do so. In Malaysia, removal of directors can be done under section 128(1) with the use of an ordinary resolution at the annual general meeting (AGM), Extraordinary General meetings (EGM) or any properly constituted shareholders meeting
However, it must be noted that it since reports to shareholders are not very frequent and not in full details, it might be sometimes too late for shareholders to take appropriate actions. It is therefore incumbent on directors to act diligently to ensure that they lead the company well thus achieving the company's objectives and ensuring a reasonable rate of return for the shareholders. Directors must dedicate themselves fully to the company's cause and to ensure disclosure and transparency to all shareholders.Cowan (2004) states that shareholders have contributed their funds to the company and, in return, have the right to expect reasonable treatment and protection in exchange for the risk exposure of their funds.
One of the remedy for wayward directors is to have independent non-executive directors providing alternative views and oversight capacity. In addition they might bring in additional skills and expertise to complement the executive directors in improving the board's performance and in doing so spurring the company to greater heights.
Paragraph 1.01 of the Listing requirements of Bursa Malaysia Securities Berhad and Practice note No 13/2002 noted that an independent director is one who is independent of management and free from any business or other relationship, which could interfere with the exercise of independent judgement or the ability to act in the best interest of a listed company.
However, we must also bear in mind that many independent non-executive directors have other positions in industry as well and may not be in position to understand the business let alone improve performance of the company. However, it must be noted that listing requirements nowadays requires the appointments of independent non-executive directors. Furthermore they are expected to form the majority of members in audit committees and other oversight board level committees.
4. SUMMARY
In summary, it is clear that directors should act honestly and diligently in discharging their duties especially in listed company or in instances where directors are not shareholders. Not doing so would mean that they are not fulfilling the professional and legal responsibilities that they are paid for. Various legislation and acts have been formulated in many countries to ensure that directors act honestly and diligently although in some cases it is just as simple as to terminate the directors or hope that they change their ways. Recent cases like the ENRON affairs and Worldcom's collapse illustrates to us how important it is for directors to act honestly and diligently in their duties towards shareholders. It can also be seen that there are many safeguards available to ensure that directors carry out their duties honestly and diligently and these measures carry both legal and moral bearing on the errand director.
Bibliography
1.Cowan, Neil 2004, Corporate Governance that Works!, Prentice Hall, Jurong, Singapore
2.Lee, Mei Pheng 2005, General Principles of Malaysian Law 5th Ed., Oxford Fajar, Selangor, Malaysia.
3.The Institute of Internal Auditors Malaysia, 2006, The Professional Practices Framework, The Institute of Internal Auditors, Kuala Lumpur Malaysia.
4.Fok, William, 1996, A Practical handbook on Company Secretarial Practice, Leeds Publications, Kuala Lumpur, Malaysia.
5.Legal Review Board, 2008, Penal Code (Act 574) as at 15th January 2008, International Law Book Services, Petaling Jaya, Malaysia.
6.Finance Committee on Corporate Governance, 2000, Malaysian Code of Corporate Governance, Malaysian Institute of Corporate Governance, Kuala Lumpur, Malaysia.
7.Ministry of Finance Malaysia, 2007, Companies Act and Regulations- Amendments up to September 2007 26th Edition, MDC Publishers Sdn. Bhd., Kuala Lumpur Malaysia.

Financing Your Property in Malaysia

Financing for your property assets is one of the best lesser known tools of leverage which can increase your networth. To own a house is no longer a dream or illusion and now everyone can have your own dream house easily. In Malaysia, the house owners only have to come up with a minimum of 10% or even less of the purchase price and the balance can be financed by the banks.
First of all, you may want to shop around to look at the different housing loan packages offered by banks. Different banks offer different mortgage packages. The borrowers have to choose the most suitable packages for themselves, according to their financial needs. Bankers would decide on the loan approvals based on 5 C's, which stands for Characteristic, Capacity, Capital, Condition and Collateral.
Characteristic refers to the repayment record of the borrower. This is given the heaviest weightage by the banks in deciding the loan approvals. The borrower's payment track record can easily be obtained from the Central Credit Reference Information System (CCRIS). Bank Negara Malaysia has a Kiosk Counter to allow the public to check their CCRIS. This is a free service provided by the Malaysian Central bank.
Capacity refers to the Debt Income Ration (DIR) of a borrower. The total debts and new housing loan installment divided by the total borrower's income must not be more than 40% in ratio. Capital refers to the networth of the borrower. Condition refers to the economy and borrower's condition. Collateral refers to the property that the borrower going to finance. The fair market value, marketability factor, and the condition of the property are always taken into consideration while considering the loan approval.
After your housing loan has been approved, the next step is to check the conditions of the letter of offer issued by the bank, which includes the interest rate, the holding period starting from first drawdown or last drawdown, installment amount, and other details.
Choosing a responsible lawyer is another vital issue. An irresponsible lawyer might drag the processing of the Sale & Purchase Agreement and Loan Agreement. The Purchaser might end up having to pay the penalty to the Vendor if the housing loan has not paid before the expired date. Hence, choosing a good, reputable and responsible lawyer will expedite the whole process.
As a purchaser and borrower, is important to follow up closely with the bankers and lawyers in order to get things done on time.

What Are The Factors That Will Affect The Property Values In Malaysia?

First of all, the location itself is the main factor that will affect the property values in Malaysia. If a property is close to school, shopping mall, bank, transportation facility, hospital, restaurant, church, temple, airport or any other places that can provide convenience to the people staying at that area, that particular property will definitely has a high property value that will attract more people than any property.
When it comes to real estate, the principle of supply and demand refers to the ability of people to pay for real estate coupled with the relative scarcity of real estate. The property values will be driven up by the condition of high demand coupled with a certain purchasing power and a short supply due to the scarcity of land. In contrast, the property values will experience a drop when people demand less of it while more supply enters the market.
Let's take for example Penang, being the second smallest state in Malaysia just after Perlis in terms of geographical coverage yet is the eighth most populous with 1.56 million of residents according to the population and housing census, Malaysia 2010 which is conducted for every ten years. Penang which has an average of 1, 490 persons per square kilometer is the second most densely populated states after Kuala Lumpur. This high level of population density puts competing pressure on land use which results in the rise of property prices as developers will put more expensive price tags on their projects due to the high-land costs. Besides, the lure as a tourist destination and a second home for foreign retirees is also one of the factors that results in a greater demand of Penang property. As a result, the short supply due to scarcity of land and the high demand from both foreign and local buyers is the main reason why Penang properties price are high as compared to say, Kelantan.
Apart from supply and demand, the Feng Shui and Vasthu Sastra which is known as the "science of construction" also have to do with property values in Malaysia. Regardless of you believe or not, many recent studies have shown that the property price will still be affected by Feng Shui. A property placed near a body of water can fetch you a handsome price compared to a property which is not. A property faced with a road junction or built at a dead-end road can have a lower price as compared to another property in the same area which is not. Many people trust Feng Shui because they consider that keeping things related to Feng Shui will bring steady growth, prosperity, good luck, good health, happiness and positive energy to the house, office or to the being. In this way, people will consider carefully the position and placements of the property which in turn makes a well placed or well designed property more attention-getting and favorable.
Next, inflation also has an impact on property values in Malaysia. At its most basic level, inflation is simply a rise in prices and a fall in the purchasing value of money. Let's take an example; again using Penang where there is latest news announced that "the selling price of properties in Penang will soon surge by 5%-10% following the recent move by Lafarge Malayan Cement to raise cement prices by about 6%", according to the Penang house developers. A hike in cement price simply means the price of concrete roof tiles, cement sand bricks and all the other cement-related products will rise. On average, 50% of building materials used in property development comprises cement and cement related products. Therefore, such inflation will leads to an increase in construction costs and the buyers are the one who ultimately bears the cost. Besides, the inflation also has been caused by the transportation and labor costs that are increased nationwide. The rise in cost of labor is particularly due to the labor shortage as many Indonesian have gone back to Indonesia and are facing with stricter laws and standards when they wish to come back to Malaysia.
The government's introduction and revision of its property related policies also played a key role in determining the value of properties. The exemption revision of real property gains tax (RPGT) has increased the interest of a small group of people on the property market. Additionally, Malaysian government is pushing out a series of incentives to make its property market more attractive to foreign investors who will eventually bring in external cash flows. Both of these actions have enhanced the property values. In addition, the build then sell (BTS) concept has been revised. It has increased the confidence of buyers and created developers who are more conservative leading to higher value of property.
Furthermore, the existences of property agents and Internet such as auctions websites and real estate agent websites help ease the process of selling the properties nowadays. It has made the property investment more easy, convenient and favorable. In this way, there is an increase of interest in property investment thus further lifting the value of properties.
Moreover, the mortgage rate that also plays an important role in influencing the property value should never be forgotten. A mortgage rate is commonly known as Base Lending Rate in Malaysia (BLR). BLR is a term refers to the minimum interest rate used by banks. It is defined by the central bank of Malaysia. BLR will get lower when the global money market down turn and get higher when the money market is on uptrend. Whenever the housing demand is weak, lower mortgage rates will help to improve the access to property financing while reducing the monthly payment for housing loan. So, these circumstances will aid in strengthen the housing demand and then the property value will increase over time.
Last but not least, the vacancy levels will also have a significant contribution towards the property values in Malaysia. For illustration, when the unemployment rate is high, the buyers and investors will not have enough capital to invest in a property creating a situation of strong rental sales. In contrast, the low unemployment rate will motivates the buyers and investors to involve themselves in property investment activity eventually leading to a higher property values.
Above are some of the factors that will affect the property values in Malaysia. However, there are still some other relevant and important factors out there that are worth seeing.

Riding Your Bike: How to Stay Safe on the Road

Summer's warm, dry weather brings out bicyclists in droves. Not only is it good exercise, fun and eco-friendly, but with the price of gas, it is very economical, too. However, without good equipment, proper attire and a high level of alertness, it can be dangerous, especially when sharing the road with automobiles.

According to the National Highway Traffic Safety Administration (NHTSA), there were 630 deaths and 51,000 reported injuries from bicycle accidents in the United States in 2009. 

Bicycle Accident Statistics

• Collisions with vehicles account for a third of all bicycle accidents resulting in injuries and deaths.
• A bicyclist is killed every six hours in the United States.
• About one million children are injured in bicycle accidents annually.
• 75% of serious injuries and fatalities from bicycle accidents are due to head injuries.

Cars and bicycles have a tenuous relationship on the road. Drivers are focused on looking out for other cars and trucks on the road, and don't always see bicycles. In addition, bicyclists are slower than cars, and can be overtaken before the driver realizes they are there. This can result in accidents -- and the bicyclist almost always comes out the loser in this scenario.

While bicyclists enjoy the same privileges as drivers on non-freeway roadways, they also have the same responsibilities. Stopping at red lights, stop signs, and yielding; signaling all turns; not exceeding the posted speed limit; using the right side of the street and not the sidewalk; and paying attention to the traffic all around them.

In Washington state, bicyclists can ride side-by-side, but only two abreast.  If the road has a wide shoulder, use it, but if the curb lane has no shoulder it's best to stay to the left in the far right lane so drivers can more easily see you. Ride in the same direction as traffic and wear proper clothing (bright, flashy and reflective). If riding at night, have a white headlight and a red taillight that are functioning properly. These all help drivers see -- and avoid -- you.

Even though Washington state doesn't require bicyclists to wear approved helmets, the city of Seattle and King County require it. For a complete list of cities that require bike helmets to be worn, go to: http://www.wsdot.wa.gov/bike/helmets.htm.

What to Do After a Bike/Car Crash

 If you are unfortunate enough to be hit by a car, take these steps:

• Remain calm and non-confrontational.
• Call the police and insist that the officer files a police report. In the event that an officer does not respond, go to a police station and file an accident report within 72 hours of the incident.
• Get the driver’s insurance information, address, phone number and license plate number.
• Get the name, phone number and address of every witness.
• Have your bike thoroughly inspected by a reputable bike shop.
• If you have a cell phone camera, take photographs of the accident scene, your injuries, your bike and all other involved vehicles.

Sources: WSDOT.wa.gov/bike/laws.htm; National Highway Traffic Safety Administration

Malaysia Newspapers - The Evolution Continues

There are many local newspaper in Malaysia. Some are new and some have been around for at least 50 years. And like any newspaper publishers around the world, most of them has a beginning in politics. Malaysia is also one of them. The New Strait Times for example has been instrumental in instilling nationalism among the people during the pre-independent days. In other words, it was used as a propaganda tool to reach to the mass.
Today, from the politically-inclined newspapers, Malaysia has spawned many other newspapers of all genres such as Finance, Business News, Entertainment and many others. To cater for the multi-racial Malaysians, one can find newspapers in most of the major languages spoken in Malaysia such as Malay or Bahasa Melayu, English, Chinese, Tamil, Kadazan, Iban and many other local dialects especially in East Malaysia. Such variety makes Malaysia one of the most unique countries in the World.
When it comes to politics, newspaper in Malaysia can  be categorised into three categories: pro-government, pro-opposition or neutral. Most of the mainstream newspapers such as The Star or New Straits Times have long been perceived as pro-government but being a democratic country, Malaysia has never stopped pro-opposition newspapers to be in circulation though from time to time there are cases where publishers fail to renew their publication permit for being too 'vocal' in  expressing their opinion against the government.
Pro-opposition newspapers are normally backed by its proxy political party in terms of resources and funding. Even though there is no such thing as absolute freedom of speech in Malaysia yet, the existence of such newspaper proves otherwise. And one can be sure that such evolution will continue in Malaysia and hopefully for the better.

Is the Economy Resisting Malaysia or is Malaysia Resisting the Economy?

Speak, blog, testify, judge and publish all you want about corporate finance and setting up competitive sectors to improve an economy. Let an economy be resilient, low-income or highly dependable - If financiers or politicians can walk their logic talk in a timely fashion, padded with some ingenious combination of ideas and concepts, we wouldn't be in so much trouble. Malaysia probably wouldn't be in this state of economy.
It could be better; it could be worse. That all depends on how you look at things, how you balance a huge variety of factors involved and use them for forecasting. In many poorer countries, some would say "Leaders should look into dominating small manufacturing, production (farming) or private/public services in their region,"; while some would argue, "Leaders should use available resources to develop their stock markets, get into the international finance arena and start playing the game."
Have we not learned our lesson? Take Seoul and Tokyo for example. Both have placed a lot of emphasis on developing "LOCAL" banking focus - Simple administration and banking systems should provide financial services to the local market - forthrightly supporting those greatly in demand and with great potential. Provide local 'dominance' to small to big enterprises. Let banking and financial institutions have financial sustainability, and be less dependent towards international banks and equity markets.
These are the economies that sustain hits and survived whatever waves that come along their way. Like China, local dominance towards natural resources and potential paved way for its citizens to spruce up the economy; to circulate funds in a fashion where international dependence is minimal. For low-income countries, they should focus on what internal resources they can leverage and spruce things up locally before joining dances of gigantic banks - In which most of the time serve relatively wealthy communities, groups or individuals only.
If Central Asia, for example, were to juggle stock markets in the international arena, knowing that they're only at the early stages of development, what ball would they bring to the game?

KL Management Services has been restructured into a Chartered Accountant company in Malaysia, now servicing corporate clients from small to large for corporations. KLM is one of three professional accounting firms in Malaysia licensed, experienced and capable to provide financial advisory services