THE STAR Sunday 24 May 2015

StarSpecial MONEY & YOU

Time +
money =
stability

Smart banking, potential higher returns > 3

Global diversification for added value > 8

2 MONEY & YOU

StarSpecial, Sunday 24 May 2015

By RACHEL PUNITHA

IFE would be far simpler if

it consisted of only eating,
drinking and sleeping. Alas,
this is not the case as developing
societal issues continue to be the
banes of our existence.
We constantly strive to
find solutions to issues such as
illnesses, accidents, job loss and
family and work politics.
Amid these issues are our own
pressing needs, as clearly outlined
by Abraham Maslow, an American
psychologist best known for
creating the hierarchy of need.
Maslow theorised that the
human psychological health is
attributed to five levels of needs
physiological, safety, social,
esteem and self-actualisation.
As individuals and the society
develop, our needs evolve as
well. However, as steadfast as
Maslows pyramid stands, we
have subconsciously allowed our
luxury needs to overlap our basic
needs. Sometimes, we even view
these luxuries as a conduit for
reaching self-actualisation. We
unwisely think that our need for a
luxurious lifestyle is a basic need
that will give us fulfilment.
Largely because of this, our
discipline in managing our
finances takes a hit. After putting
aside money for electricity, water,
housing, loans, memberships,
groceries and other basic
necessities, our immediate focus is
to attend to our luxury needs.
There is a superabundance of
luxury needs these days gadgets,
vacations, relaxing activities,
vehicles and other items or
services of pleasure. Even when
we do save, our money is used for
weddings, birthday parties, gifts
for loved ones and bigger houses.
Out of procrastination, we find
excuses to avoid saving, claiming
we do not earn enough money to
have some set aside every month.
However, if push comes to shove,
you can definitely find the will to
save. Here are different ways you
can save money:
l Save in a bank savings
account
You can save by regularly
depositing money from your
current account into your savings
account or even a fixed deposit
account.
A fixed deposit account involves
locking away a particular amount
of money for a certain time

Save now,
indulge
later

Your dreams of living the high life will be for nothing if you are not savvy with your finances.
period at a fixed rate of interest.
Withdrawing this money before
the end of the fixed period will
mean being charged a penalty.
The interest rate for a fixed
deposit account is normally
higher than that of other
accounts, so this can be a good
way of keeping your savings
because you would be reluctant
to pay the penalty.
Of course, there are accounts
with flexible withdrawal
options. One such account
is the Maybank Islamics
new compliant Mudarabah
Investment Account.
l Save with a group of
friends
This group should comprise
individuals whom you can trust.
In this method of saving, each

Using your
nest egg wisely
AN obligatory savings fund run by the
government, the Employees Provident
Fund (EPF), is a sure way of saving
your money.
Although used primarily as a
retirement fund, the EPF has made
allowances for us to withdraw our
money for a set list of needs when we
crucially need it. This is taken from
the second account (Account 2) as the
first account (Account 1) is cleared out
when we retire.
Over the years, many Malaysians
have made wide use of this benefit
and choose to withdraw their money
to tend to their financial matters.
Here is a graph showing the types and
number of withdrawals made over the
last three years.

member of the group contributes a

set amount every month.
Once everybodys contribution
is collected, the person appointed
by the group receives the amount
for the month.
For example, if there are 10
of you and every one of you
contributes RM200 each month,
the first person appointed receives
RM2,000 in the first month.
In the following month, the
second person gets RM2,000, and
so on. This is an effective way
of saving as you put aside only
RM200 every month as opposed to
having to produce a lump sum of
RM2,000 every 10 months.
l Save money regularly in a
piggy bank
Saving small amounts of
money, such as coins, at home and

then banking them in when your

piggy bank is full can be a very
effective way of saving.
Twenty-seven-year-old Tabitha
Surita, for example, confesses that
she has a quirky habit of putting
aside every RM5 note she comes
across.
I like the feel of the green bills
and so I put them into a large jar
at home.
I stuff as many as I can into it,
trying my very best not to transfer
the entire amount into my savings
account unless it looks like the jar
is about to burst, says Tabitha.
This is simply because I know
that once the money is in my
account it will be very easy for me
to swipe my debit card and spend
it all.
Youd be amazed how much
you can save this way.

Number of withdrawals for EPF Account 2 from the year 2012 to 2014
439,723
RM7.84bil

416,667
RM14.1bil

147,991
6.6%

141,193

375,563
RM4.96bil

137,633
Withdraw at
50 years of age

* Terms and conditions apply.

(source: The EPF 2014 annual report)

77,404
RM372.94mil

5,136
RM46.06mil

4,834

Withdraw at
55 years of age

(not stated)

2.8%
(not
stated)

RM3.84bil

308,381

961,771

RM5.10bil

RM3.94bil

355,754
RM13.23bil

382,214

RM43.13mil

71,619

6.8%

RM338.14mil

362,002

4,533
Health care

10.3%

Housing

833,513

68,176
Education

Investment

2012

2013

2014

(not
stated)

I am well aware of what my

spending habits are like and this
is my way of protecting myself
against myself.
l Make use of a standing
order
Sometimes you may not
be disciplined enough to save
regularly.
Putting off transferring the
money into your savings account
from another account means
putting the money at risk of being
spent.
To save effectively, set up a
standing order to get your bank to
do it for you.
A standing order is an
instruction to a bank to pay a
set amount of money at regular
intervals from one account to
another. Charges may apply.
l Save through an investment
plan or insurance scheme
This is one of the best ways to
save as your money will mature
over time and give you very good
interest rates.
Saving through this method
is a good example of letting your
money work for you.
With insurance, your basic
medical bills, if not more, are
taken care of.
Moreover, you can purchase
investment plans and insurance
schemes at a very affordable rate
these days.
Regardless of the methods
used, saving money is crucial to
securing ones future.
To make it happen, one
must learn to forgo some, not
necessarily all, forms of luxury
and make saving money a
priority.
Just as middle-income earner
Tabitha says, we need proactive
measures to protect ourselves
from our spendthrift ways.

StarSpecial, Sunday 24 May 2015

MONEY & YOU 3

Smart banking, potential higher returns

M

AYBANK Islamics new

Syariah-compliant Mudarabah
Investment Account (IA) allows
customers to potentially earn higher and
stable returns.
The investment account products will
be launched on June 16.
Mudarabah IA will retain all of the
existing banking features and services
with the added benefit of greater
flexibility on withdrawal for Term Fund-i.
There are two types of IA the Daily
Fund-i and the Term Fund-i.
More information on the accounts is
shown in the infographic.
Existing Mudarabah customers may
reclassify their accounts before May 31 to
retain the same account number or debit
card number.
Doing this will mean avoiding the
hassle of opening a new account after
this date.
Response channels are made available
for the convenience of customers to
reclassify their existing Mudarabah
deposits into IA:
l M2u: Customers can reply through
their Maybank2u account. A link will be
made available for them to respond.
l Hotline: Customers can call
1800 882 028 and ask to speak to a
customer service representative.
l Mail via post: Customers can submit
the response post with a prepaid
envelope.
l Branch visit: Customers can visit any
Maybank or Maybank Islamic branches
to convert their accounts.
n For more information,
call 1300 886 688 or visit
www.maybank.com.my/islamic

Daily Fund-i Investment Account

(Currently in the form of current account and savings account)

Returns*
(indicative profits)
Current

Payment frequency
and profit earned*
New

Conservative return between

0%2% per annum

Current

Higher return between

1%3.5% per annum

New

Half-yearly or yearly payment

depending on product
Profit earned* subject to minimum
outstanding balance/withdrawals

Monthly payment
Profit earned based on the
number of days invested

Term Fund-i Investment Account

(Currently in the form of term deposit)

Returns*
(indicative profits)
Current

Maximum 3.8% returns

per annum based on tenure

* Based on indicative rates

Payment frequency
and profit earned*
New

More than 3.8% return

per annum for all tenure

Current

New

Premature upliftment
Below three months, no profit paid
More than three months, 50% of the
total profit paid
100% profit paid upon maturity

Without lock-in period

Profit paid monthly regardless
of investment tenure
Profit earned based on the
number of days invested
Withdraw anytime, without
additional charges

4 MONEY & YOU

StarSpecial, Sunday 24 May 2015

New identity propels trusted brand forward

T

OKIO Marine recently

unveiled a new identity
for its collective corporate
brand, Tokio Marine Insurance
Group, which consists of its life
and non-life insurance companies
in Malaysia.
This rebranding reflects a
renewed commitment to provide
a unified customer experience
through a one-stop marketing
platform of insurance solutions
that meets the various needs of
customers.
A new corporate website has
been launched, exhibiting the
new brand colours and providing
customers, business partners and
advisers a platform from which
they can access information.
In addition, the Ready For
Whats Next campaign was
launched nationwide in April on
major media platforms.
The campaign focused on
key moments and decisions that
people make in their lives and
how the insurance solutions
offered by Tokio Marine Insurance
Group can meet their needs and
challenges at different life stages.
Tokio Marine Insurance Group
supports customers aspirations
with a pragmatic approach and
an objective of making progress a
personal matter.
Tokio Marines commitment to
its customers in their life journey
is reflected in the companys Arc
of Progress graphic element.
The Arc of Progress also
represents Tokio Marines
intention to stay true to its
heritage while portraying the
company as a dynamic and
progressive organisation.
The rebranding marks another
important milestone in Tokio
Marines 65-year history of
operating in Malaysia.
THE type of investment someone
chooses depends to a large extent
on various factors such as age, sex,
background and profession.
This often makes choosing the
most suitable product tricky and
hence a qualified financial planner
may be helpful.
By keeping abreast of the latest
financial matters and products, a
financial planner can recommend
a different combination of
elements to suit each clients
needs in the best way possible.
Money & You speaks to
Jonathan Avinash Victor, an
associate financial planner who
has been running a business that
distributes financial services
and products since 2007, about
the different demographics of
investors in Malaysia and the
reasons behind their decisions.
In my line of work, high networth investors generally choose
to keep their investments and
insurance plans separate. Many of
them subscribe to the philosophy
of buying term insurance policies,
which do not have an element
of investment, rather than pure
investment vehicles such as stocks
or unit trusts, he says.
This enables them to buy
a large insurance cover for
lower premiums compared to
investment-linked insurance
policies or whole-life plans. At the
same time, they have more control
over their portfolio by taking part
in pure investment vehicles.
This is great as long as one
has the discipline and cash flow

About Tokio Marine

Tokio Marine recently launched a new brand identity to reflect its commitment to provide a unified customer experience.
It further unites its businesses
and gives both its life and general
insurance companies wider reach
in the local insurance industry.
A unified brand gives
customers the confidence that
Tokio Marine is a trusted brand
that is capable of taking care of
all their insurance needs.

Much to offer

Tokio Marine prioritises its

customers and upholds this
principle at the core of all its
products and services.
The company has formed
robust strategies and
infrastructure in the way it
operates, establishing a broad
distribution network based on
multiple partnerships, joint

ventures and collaborations

with agency channels, brokers,
intermediaries and banks.
It continuously works to ensure
that its policies offer full coverage
with minimal disparities.
Some of its sought-after
insurance products that are based
on this winning formulation
include:
l Marine cargo insurance
The technical expertise, stateof-the-art eMarine platform
and dedicated global team of
claim, recovery and loss control
specialists that offer timely policy
underwriting, issuance and
claims processing. It has earned
the company the reputation as a
leading global player in marine
insurance.

l Risk engineering Catering

to the ever-growing demand for
manufacturing and construction
insurance solutions, Tokio Marine
has a risk management support
team consisting of highly trained
and qualified risk engineers
experienced in identifying
potential hazards and mitigating
risks.
l Personal Tokio Marine caters
to the rising demand for insurance
coverage of personal accidents,
health, property and travel as
well as other services such as
card protection and travel related
services.
l Life insurance While it
may be exciting to think about
the future, you may also have
concerns about protecting your

ESTABLISHED in 1879 as the

first insurance company in
Japan, Tokio Marine has grown
over the decades and now
offers an extensive selection
of general and life insurance
products and solutions.
With presence in 37
countries and expanding, Tokio
Marine ranks as one of the
worlds most globally diversified
and financially secure insurance
groups.
Tokio Marine Life is a
member of Tokio Marine Group
in Japan and has more than
17,000 employees and 46,000
agents operating in 456 cities
across 37 countries.
Both Tokio Marine Life
Insurance Malaysia Bhd
and Tokio Marine Insurans
(Malaysia) Berhad are member
companies of Tokio Marine
Holdings Inc in Japan.
Tokio Marine Insurans
(Malaysia) Berhad or TMIM is
a subsidiary of Tokio Marine
Asia Pte Ltd Singapore and its
ultimate holding company is
Tokio Marine Holdings Inc in
Japan.

loved ones, paying off a house

loan, providing a good education
for your children and retiring
comfortably. Hence, Tokio Marine
offers a comprehensive suite of life
insurance and wealth solutions
that can help secure you and your
familys future.
n For more information,
visit www.tokiomarine.com

Professional insight into investments

Jonathan Avinash Victor.

Careful financial planning will help you find the best investments for your lifestyle.
to stick to a plan that separates
investments from insurance.
On the other hand, those who
have dependents or not a lot of
money to spare prefer to purchase
investment-linked insurance
plans, according to him.
This is beneficial because
it meets two financial goals
providing medical coverage or a
death/critical illness payout while
meeting investment needs.
If youre on a tight budget,
one of the first things you should
consider getting is a good medical
card as hospital bills can put a
big dent in your financial plan.

By purchasing a medical card,

you can ensure that you need not
touch your savings or investments
when caught unaware, says
Jonathan.
This advice is especially
important for bread winners of
the family. Without them having
access to good health care, the
whole family may face dire
financial difficulties.
Jonathan also advises
those who are thinking about
purchasing education schemes for
their children to do it while their
children are still young.
Education schemes are most

effective when started while the

child is young. Having a good 15
to 20 years for the schemes to
mature and grow exponentially is
the best, he says.
Another very popular channel
of investment is real estate.
Jonathan explains that your first
house is where you stay and
therefore, does not generate a
positive cash flow.
However, by renting out your
second property, you can create a
positive income stream.
Jonathan advises people to be
proactive about incorporating
critical illness benefit to their
mortgage insurance.
This is important because many
people will find it a burden to
continue their monthly mortgage
payments should they be unable

to work and earn due to serious

illnesses.
This is a section often
overlooked by those purchasing
MRTA (mortgage reducing term
assurance) and MLTA (mortgage
level term assurance) plans, which
usually only offer payout in the
event of permanent disability or
death.
Getting your will done, no
matter how young you are, is also
part and parcel of being financially
savvy. Your finances, investments,
property and schemes are not
solely your concern. They are the
concern of your family as well, he
adds.
While buying a property,
growing your money and being
insured are important, there is a
large number of the population
who do not have the luxury of
owning even one of the above
mentioned. When asked about
this matter, Jonathan says if you
are forced to prioritise, secure a
good medical plan.
Jonathan says, Nowadays,
insurance is quite affordable.
There are even standalone
schemes that cost around RM500
a year for a 25-year-old male that
take care of the very basic medical
needs. The purpose behind
investment-linked insurance plans
is to allow people to have the best
of both worlds even if they have a
limited monthly budget.

Sunday 24 May 2015

StarSpecial 5

6 MONEY & YOU

StarSpecial, Sunday 24 May 2015

VERYONE is encouraged to get

covered by insurance; it is one of the
best ways to ensure that you will not
be caught out financially in the event of an
emergency.
Most people get life and medical
insurance coverage but some deem it
prudent to insure themselves or parts of
their body as a means of insuring their
source of income.
This certainly makes sense a singers
income is dependent upon his or her voice,
as is a surgeons career on his or her hands.
In this vein, here are some of the more
interesting body parts that people have had
insured.

Total body coverage

Swift, Rihanna, Mariah Carey and Tina
Turner, to name a few.
Turner has said of her long legs, which
are reportedly insured for US$3.2mil
(RM11.5mil), that when she was young she
thought she looked like a pony.
They have since become part of her
signature high-energy performances that
have entertained fans for decades.

Bruce
Springsteen.

Bottom

Legs

Internationally famous footballers David

Beckham and Christiano Ronaldo both
have had their legs insured for hundreds of
millions of pounds, which
is justified as their
legs are basically
their livelihoods.

Madonna.

Another person who has insured her

income in this way is supermodel Heidi
Klum, whose famously sexy legs are
insured for US$2mil (RM7.2mil). Klum
has revealed that her left leg, which
sports a small scar, isnt as pricey as her
(presumably pristine) right leg.
Actor, singer and dancer Betty Grable,
who was the highest-paid Hollywood
celebrity between 1943 and 1951, was also
a favourite pin-up during World War II
and most famous for her legs.
They were reportedly largely
responsible for her earning US$300,000
a year, and so at the height of her fame she
insured them for US$1mil.
Several other celebrities have also
insured their legs for several millions
actress Jamie Lee Curtis and singers Taylor

CANADA PROPERTY INVESTMENT :

DOUBLE NET every 5 Years ?

Moving up from legs, being wellendowed in the behind can also garner a lot
of attention and make one famous.
The assets of both Jennifer Lopez and
Kylie Minogue, for example, play a major
part of their respective brands as singers
and entertainers.
Lopezs prized behind is insured for
somewhere between US$25mil and
US$30mil (RM90mil and RM107.5mil)
while Minogues perky booty is insured for
about US$5mil (RM18mil).

Hands

Hands are another commonly insured

body part. Models and surgeons are among
the biggest group of people who seek
coverage for their hands as part
of their insurance for their
income.
Famous people to have
their hands insured
include Rolling Stones
lead guitarist Keith
Richards, who has
insured his for about
US$1.6mil (RM5.7mil),
and rock guitarist Jeff
Beck, who reportedly
took out a US$1mil
(RM3.6mil) policy on
each of his fingers
after he accidentally
sliced the top off
his left index finger
while cutting
carrots, resulting in
a seven-week hiatus
from playing music.

Vocal chords

31 May 2015 (Sunday)

People who
make their living as
professional singers are
often exposed to illness
because of their hectic
lifestyles travelling
on aeroplanes, meeting
hundreds of people who are
carrying all kinds of germs
and physically exerting
themselves during their
performances.
For this reason, most, if
not all, have some form of
health insurance to cover any
circumstance. On top of that,
singers choose to insure their
vocal chords the tools of their
trade against injury or illness.
Among them are Bruce
Springsteen, whose original
coverage was for about US$6mil
(RM21.5mil) in the 1980s
and is now about US$31mil
(RM111mil), and Rod Stewart,
whose voice reportedly started
with US$6mil (RM21.5mil) of
coverage in the 1940s and is
now worth about US$15mil
(RM54mil).

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Some people have insured

their tongues or taste buds
because that is what they make
a living on.
Food critic Egon Ronay,
who is credited with raising
the quality of British cuisine
in the 1950s and 60s
and published a series of
guides to British eateries,

Gene
Simmons.
insured his taste buds for about 200,000
(RM1.1mil) in the 1960s.
Wine expert and presenter on British
television Angela Mount, credited with
making quality wine accessible to the
public and catalysing a new British
trend of wine drinking, has insured
her taste buds for about 10mil
(RM56mil).
On the other end of the spectrum, there
are entertainers famous for their tongue
antics who have coverage for this twisty
appendage.
Gene Simmons, well known for his
blood-covered tongue waggling
during live performances with
his band KISS, had his insured
for US$1mil (RM3.6mil)
at the height of KISS
popularity.
Miley Cyrus, more
recently infamous
for sticking out her
tongue everywhere she
goes, has reportedly
insured hers for US$1mil
(RM3.6mil).
Then there are those
that have insured their
famous smiles. Julia Roberts
smile and teeth are insured
for US$30mil (RM108mil),
Betty
making it the most expensive
Grable.
smile in Hollywood.
America Ferrara, who rose
to fame playing the metalmouthed ugly duckling lead
character in the television
show Ugly Betty, had her
teeth and smile insured
for US$10mil (RM36mil) by
Aquafresh after she signed on as
their spokesmodel.

Breasts

Life or medical insurance that

includes coverage for breast cancer
is gaining popularity nowadays.
Breast cancer is, after all, a major
cause of illness and morbidity in the
female population.
On a lighter note, there are people
who have insured their breasts
against injury as their breasts are part
of their image or are the main source
of their income.
Dolly Partons famously full bosom,
for example, is insured for US$600,000
(RM2.2mil). Former Playboy bunny Holly
Madison, who has said that her breasts
are her primary money makers, has
insured hers for US$1mil (RM3.6mil).
Madonna has had hers insured for
US$2mil (RM7.2mil), and though she has
not revealed why, it can be speculated
that it was because they played a large
part in her rise to pop idol status.

StarSpecial, Sunday 24 May 2015

MONEY & YOU 7

Astute way to save for retirement

M

ORE often than not, what

is left of our earnings after
paying the bills is used to
buy something we want rather
than something we need.
Imposed upon by peer
pressure, advertisements and
promotions of the desire to live a
life of luxury, we are inclined to
spend more than we can afford.
Setting aside money for savings
is often at the bottom of our
priority list and we often have to
deal with emergencies, which eat
away at our savings.
Added to this are the rising
costs of living and inflation rates,
which mean we may never find
the means to save enough for
when we retire.
For many who do not have
the privilege of having enough
investments or insurance to
look after their entire family, the
Employees Provident Fund (EPF)
is the legitimate saving grace
for them to be able to retire to a
decent lifestyle.
Furthermore, because of
the difficulty of preserving
our savings, the EPF is the only
precious nugget left to sustain
many of us upon retirement. Even
then, statistics show that this
alone is not enough.
According to figures from EPF,
approximately 70,000 active
54-year-old contributors had
average savings of just under
RM167,000 last year.
The recommended minimum
savings level is RM196,800.

EPF deputy chief

executive officer
(strategy division)
Tunku Alizakri Raja
Muhammad Alias.

In reality, even the minimum

amount is insufficient. As the
average life expectancy rises to
the 70s, to retire at 60 with that
amount would mean surviving on
just RM800 a month for the rest of
your days.
This amount is far below the
minimum wage requirement,

which will be increased as time

goes by. The thought of thriving
on such a measly amount is
inconceivable, especially when we
are already struggling to survive
on more while still earning a
salary.
According to EPF deputy
chief executive officer (strategy

division) Tunku Alizakri Raja

Muhammad Alias, EPF members
need to empower themselves in
terms of financial literacy so that
they can live a sustainable life
during their retirement.
The core purpose of EPF is for
retirement and retirement only.
It is meant to be used when we
retire and not any time before.
If we withdraw the fund even
before we retire and then expect
it to sustain us till we are in
our 70s, we will soon be forced
to either work to earn a living
or completely depend on our
children to pay for expenditures.
This scenario is already
happening as worrying reports
of the ageing population being
homeless and crowding charity
homes across the country are
appearing in the media.
There are various other
channels through which we can
grow our money. However, EPF
statistics again show that we
are not very dependable when it
comes to managing our finances.
According to a report from
Bernama, from January to June
last year, 2,491 individuals aged
25 to 34 and another 4,121
individuals aged 35 to 44 were
declared bankrupt. These two
age groups recorded the highest
number of bankruptcies out of all
other age groups.
Looking collectively at the
number of cases, in 2011, the
number of registered bankruptcy
cases was 19,167 while the

number recorded in 2012 was

19,575. In 2013, the number was
21,987 while last year, a total of
22,351 cases were filed, the same
report adds.
One simple but crucial solution
to effective saving would be to
scrutinise our financial habits now
rather than pine for the money
accumulated in our EPF.
Frugality and extreme care
need to be practised when
spending.
Dont look at EPF as a
single source of financial help.
Start looking at other forms of
investments as well and be very
clear on what sort of lifestyle you
want to have, says Tunku Alizakri.
The power of compounding
your savings can only be
unleashed if you start early.
If we were to use our EPF
money to settle our debts or get us
out of bankruptcy, what else will
be left for us to use for our general
well-being and health care during
retirement?
Admittedly, we are dealing
with rising household
expenditures and ballooning
housing, education and medical
fees.
However, a preferred scenario
would be to brave these woes now
and still have our EPF money to
fall back on when we retire rather
than deplete all our savings and
retire penniless.
n For more information, visit
www.kwsp.gov.my

8 MONEY & YOU

StarSpecial, Sunday 24 May 2015

Global diversification for added value

I

NVESTMENTS tend to drop in

value due to inflation, meaning
that your current investments
may not necessarily leave you
better off in the future.
The key to a successful
investment is not to focus on
the money earned but on its
purchasing power.
Nowadays, investors are
increasingly confronted with
rising inflation rates and currency
depreciation, both of which can
significantly erode their moneys
purchasing power.
In addition, a major part
of our daily consumption is
imported, meaning that currency
depreciation will also lower
purchasing power.
To overcome these issues, a
financial strategy should
be applied to build your
assets to outpace
inflationary
and currency
depreciation rates.
More and more
investors are also
turning to global
investments
in search of
protection and
higher returns to
add to their mix of
portfolios.

Typically, the investments

now sought after are those with
returns that not only counter
inflation but are also capable of
hedging currency depreciation
risk.
Investments with global
diversification can mitigate risk
and exposure to inflation and
currency depreciation.
Global diversification is
the key to a good investment.
Unfortunately, inflation and
currency depreciation are silent
thieves that are often ignored by
investors in building their wealth,
says William Ng (pic), chief
executive officer of TFDC Asiacorp
Berhad, who is also a member of
the Certified Financial Planner
and Islamic Financial Planner.
Todays investors are seeking
options to diversify globally.
This usually leverages a
portion of their portfolio
on global investments
that provide highperforming returns and
the ability to hedge on a
stable currency.
Purposeful
global diversification
provides a balance of
optimal returns against
currency depreciation risk
exposure. It is a useful tool to
balance poorly performing
investment options,
says Ng.
We coach
investors to
be wary of

The Forest Lakes Country Club developed by TFDC is a premier four-season mixed-use luxury community development in
Canada. It has attracted buyers from more than 40 countries to date.
believing that investing solely in
the local market is good enough.
There is value in investing in
global markets to accelerate
returns that can outpace
inflationary rates and depreciation
risk.
TFDC Asiacorp is a subsidiary
of a Canada-based development
company, Terra Firma
Development Corporation (TFDC),
which is the master developer
of Forest Lakes Country Club, a
premier four-season mixed-use
luxury community development
in Nova Scotia, Canada.
The luxury community
development project is located in
Halifax, the capital of Nova Scotia.
The development was spurred by
the need for further high-profile

residential areas outside the

capital city.
Demand for this type of
residential luxury community
has grown with the increase
in population and the many
multinational companies are now
choosing Halifax as their base of
operations.
In anticipation of the housing
boom expected as a result of the
citys rapidly growing shipbuilding
industry, the resort has already
attracted buyers from more than
40 countries.
Ng adds that TFDC Asia Corp
is introducing limited units of
housing plots with a guaranteed
resale and capital appreciation
returns of 48% within three
years.

Purchasers can, at the end of

the three years, choose to keep the
plot and build on it for personal
use, resell it later for further gains
or choose to make a resale back to
the master developer for cash at a
48% gain.
The unique features of this
investment give investors
flexible options to diversify their
portfolios internationally and
hedge with the stable Canadian
dollar.
TFDC Asiacorp Berhad will
be holding half-day coaching
seminars on the topic of how
global diversification can double
your capital net every five years.
n For more information,
call 011-122 21 998.

Investing in start-ups
PAUL GRAHAM, American
author and co-owner of start-up
incubator Y Combinator, likens
venture funding to the shifting of
gears.
In his words, a typical start-up
goes through several rounds of
funding and at each round, you
want to take just enough money
to reach the speed where you can
shift into the next gear.
Grahams gear analogy
effectively captures the
complexity of funding, which is
an essential aspect of building a
business.
In the journey from start-up to
public-listed company, businesses
typically seek funds from more
than one party at different
points in time, and so provide
opportunities for investment.
Seed funding at the initial
stages may include financial
contributions from family, friends
or angel investors that support the
development of a new business
idea.

Finding your fit

The Governments effort

to assist Malaysian start-ups
financially has largely been
carried out through Cradle Fund,
an agency under the Finance
Ministry that manages the
RM100mil Cradle Investment
Program (which recently received
a RM175mil addition).
The agency hopes to enhance
private investment capacity
through its venture capital arm,
Cradle Seed Ventures, a RM60mil
fund that will further boost the

countrys start-up ecosystem.

Entrepreneurs looking for
comprehensive coverage can also
turn to start-up incubators or
accelerator programmes.
Most of these programmes
offer seminars, mentorship,
support and opportunities for
networking and development on
top of grants or loans.
The Multimedia Development
Corporation (MDeC) recently
launched the MSC Malaysia
for Startups programme in
collaboration with several other
major names in the start-up scene,
aiming to assist local tech startups in achieving MSC Malaysia
status.
This status grants access to
a host of privileges for qualified
businesses.
SME Corp Malaysia and the
Malaysian Global Innovation
and Creativity Centre (MaGIC)
both have their own accelerator
programmes.
MaGIC is currently running
one in partnership with major
industry players such as Microsoft,
Amazon and KickStart.
MDeC and StartupMalaysia.org
are not left out, having previously
worked together on the Digital
Malaysia Corporate Accelerator
Program.

Getting the crowd

Today, another form of seed

funding has taken the start-up
scene by storm crowdfunding.
Typically, only public-listed
companies can receive investment
in exchange for shares. This

Investing in
a start-up is
a novel way
to diversify
your financial
portfolio.

can be difficult for start-ups as

many largely depend on external
funding to build their business
from scratch.
Through crowdfunding,
members of the public can invest
in a start-up on the basis of equity
offering.
This means that each investing
member holds a small piece of the
business, which will change in
value depending on the success of
the company.

Throughout April and the first

half of this month, the Malaysian
Securities Commission accepted
applications for prospective
investment crowdfunding
platforms for the first time.
This was done after a
crowdfunding conference last
August opened up discussions on
the topic, leading to the release of
a regulation guideline in February.
While this method of funding
may already be losing its novelty

in Silicon Valley, it is only

beginning to make an impactful
presence in this side of the world.
Singapore-based Crowdonomic
is currently the largest
crowdfunding platform in SouthEast Asia and has contributed to
the development of several startups in its homeland.
If done right, crowdfunding
has the potential to accelerate
the growth of the local start-up
ecosystem as well.