Well, if you haven't lived in the jungles for last few months, you should know that the Gov has proposed to lower everyone's EPF contribution of 11% to 8%, so that you and I could have some 'extra income' derived from there. What the Gov didn't you, by means of that lower EPF contribution, that you might hit a higher income tax bracket!
Smart and sleazy ain't it?
Let' assume your monthly basic salary is RM4,000.
If your monthly EPF contribution is 11% (RM440), then your taxable income = RM3560, and income tax payable = RM77.
If your monthly EPF contribution is 8% (RM320), then your taxable income = RM3680, and income tax payable = RM109.
If you choose to contribute 8%, you will end up paying more income tax to the government which will make the Gov richer.
So, you might think that you have more money in your pockets, well, part of that pocket actually belongs to the Gov! This is the Gov way to establish a WIN-WIN. Ain't that great?
Showing posts with label EPF. Show all posts
Showing posts with label EPF. Show all posts
Monday, November 24, 2008
Friday, July 18, 2008
VRF (2)
Read here from previous posting for context.
Quoting from Forbes, an article on 9th July, which most major newspaper in Malaysia failed to pick up:
Yes, i think we're pretty much sodomised by the government. Now, where is that dubios Malaysian Book of Records?
Quoting from Forbes, an article on 9th July, which most major newspaper in Malaysia failed to pick up:
Malaysia's central bank chief said Wednesday that recent fuel price hikes may push inflation above 6 percent in June, nearly double May's rate and the highest in 26 years.
"This adjustment (in fuel prices) would be reflected in the consumer price inflation in June, which is expected to exceed 6 percent," Bank Negara Malaysia Gov. Zeti Akhtar Aziz told a banking seminar.
Inflation reached a 22-month high of 3.8 percent in May. The last time inflation crossed 6 percent was in May 1982 when it touched 6.1 percent.
The government raised gasoline prices by 41 percent and diesel by 63 percent last month to curb a runaway subsidy bill. It also raised electricity tariffs from July by 18 percent for households and an average 26 percent for commercial and industry users.
Yes, i think we're pretty much sodomised by the government. Now, where is that dubios Malaysian Book of Records?
Friday, June 06, 2008
VRF
If you know the acronym for WTF, figuring out VRF shouldn't be difficult.
Reuters reported that Malaysia's yearly inflation rate will be averaging out 4.5%, well above the central bank's previous forecast of 2.5%-3.0%. In the same context, AFX news reported that official data by the central bank shows that would be the highest inflation for any year since 1998, during the Asian financial crisis, when inflation averaged 5.3%. The central bank governor, Zeti Akhtar Aziz saw inflation rising above 5%in June and peaking around 5.3%early in 2009. The latest official figures showed inflation hit a 15-month high of 3%in April. But she said there was no rush for the central bank to consider raising the policy rate of 3.5%. At its last review on May 26, the central bank left rates on hold. The central bank projected that the inflation in the first half of 2009 would be around 5%, and peaking early in 2009, she said.
In short, since the revise for petrol price, inflation rate will hold on to an average 5% or more from now till next year 2009 June. That's one year for you.
Before the announcement of the revision for petrol price, inflationary rates was already in a 13-mth high at 3% in March 2008 and soared further to 3.5% in April 2008.
Bleak?
A standard fixed deposit interest rate in any local Malaysian banks only provides 3% per annum for 1mth's deposit. If we keep it for 12mths, the bank will give us a 3.5% p.a interest rate.
EPF for the year 2007 announced a dividend payout of 5.8%.
Now, what does all this means to us?
If we keep our money in the bank's FD, we're actually losing at least 2% of our money's worth. In another words, to keep the money with the bank, we're actually giving the bank back with 2%. Which also means, all the hard earned money kept in the bank are almost 'worthless' as these money are losing it's real values.
What about EPF? For all the 'hard work' done by EPF, they're actually earning 0.8% for us.
The last time we had a 5.3% inflationary rate was when the country suffered the 1998 Asian Financial Crisis, and the central bank has projected that early next year 2009, we're going to be hit with that 5.3% inflationary rate.
What does all this means? In short, VRF!
* FD rates in New Zealand & Australia are around 7-9%.
Reuters reported that Malaysia's yearly inflation rate will be averaging out 4.5%, well above the central bank's previous forecast of 2.5%-3.0%. In the same context, AFX news reported that official data by the central bank shows that would be the highest inflation for any year since 1998, during the Asian financial crisis, when inflation averaged 5.3%. The central bank governor, Zeti Akhtar Aziz saw inflation rising above 5%in June and peaking around 5.3%early in 2009. The latest official figures showed inflation hit a 15-month high of 3%in April. But she said there was no rush for the central bank to consider raising the policy rate of 3.5%. At its last review on May 26, the central bank left rates on hold. The central bank projected that the inflation in the first half of 2009 would be around 5%, and peaking early in 2009, she said.
In short, since the revise for petrol price, inflation rate will hold on to an average 5% or more from now till next year 2009 June. That's one year for you.
Before the announcement of the revision for petrol price, inflationary rates was already in a 13-mth high at 3% in March 2008 and soared further to 3.5% in April 2008.
Bleak?
A standard fixed deposit interest rate in any local Malaysian banks only provides 3% per annum for 1mth's deposit. If we keep it for 12mths, the bank will give us a 3.5% p.a interest rate.
EPF for the year 2007 announced a dividend payout of 5.8%.
Now, what does all this means to us?
If we keep our money in the bank's FD, we're actually losing at least 2% of our money's worth. In another words, to keep the money with the bank, we're actually giving the bank back with 2%. Which also means, all the hard earned money kept in the bank are almost 'worthless' as these money are losing it's real values.
What about EPF? For all the 'hard work' done by EPF, they're actually earning 0.8% for us.
The last time we had a 5.3% inflationary rate was when the country suffered the 1998 Asian Financial Crisis, and the central bank has projected that early next year 2009, we're going to be hit with that 5.3% inflationary rate.
What does all this means? In short, VRF!
* FD rates in New Zealand & Australia are around 7-9%.
Monday, February 18, 2008
Employees Plundering Funds
Lembaga Tabung Angkatan Tentera ("LTAT"), the company that manages the Armed Forces Superannuation Fund recently declared a dividend of 16% for the year 2007. EPF, however, declared a dividend of 5.8%.
Check this out.
Dividend Year 2007; EPF 5.80%, LTAT 16%
Dividend Year 2006; EPF 5.15%, LTAT 15%
Dividend Year 2005; EPF 5.00%,
Dividend Year 2004; EPF 4.75%, LTAT 15.75%
Dividend Year 2003; EPF 4.50%, LTAT 10%
Dividend Year 2002; EPF 4.25%
I cant find some of the years where LTAT declared their dividends, but you'll get the picture.
Result speaks for itself. Which of these two fund managers are more efficient, profit-driven and acts for the benefit of their beneficiaries? Yeah, I personally thinks that LTAT fund managers should be managing our EPF too. Don't you want to retire comfortably?
*EPF used to be consistently giving out dividends of 8.5% between 1983-1987 and highest dividend payout before the dip was 6.84% in 1999. If you have not known, EPF is only obligated to provide 2.5% dividends (as per Section 25 of the Employees Provident Fund Act 1991).
Check this out.
Dividend Year 2007; EPF 5.80%, LTAT 16%
Dividend Year 2006; EPF 5.15%, LTAT 15%
Dividend Year 2005; EPF 5.00%,
Dividend Year 2004; EPF 4.75%, LTAT 15.75%
Dividend Year 2003; EPF 4.50%, LTAT 10%
Dividend Year 2002; EPF 4.25%
I cant find some of the years where LTAT declared their dividends, but you'll get the picture.
Result speaks for itself. Which of these two fund managers are more efficient, profit-driven and acts for the benefit of their beneficiaries? Yeah, I personally thinks that LTAT fund managers should be managing our EPF too. Don't you want to retire comfortably?
*EPF used to be consistently giving out dividends of 8.5% between 1983-1987 and highest dividend payout before the dip was 6.84% in 1999. If you have not known, EPF is only obligated to provide 2.5% dividends (as per Section 25 of the Employees Provident Fund Act 1991).
Thursday, February 14, 2008
Employees Poverty Funds
The year is 2008. EPF dividend for year 2007 was announced at 5.8% on the 22nd of January 2008.
I logged on to my EPF online account today. The date is 14th February 2008. Still no sight of 2008 EPF statement account. The webpage held up with a notice 'Statement for 2008 will be made available after dividend 2007 has been declared". (click on the picture).
It's almost a month since it was announced yet I cant get hold of my 2008 Statement to date. Billions of money spent on IT infrastructure yet same lousy service, same sh*t. They might as well put up a notice "We are in dire need of 5.8% donations to make this happen." to put some humor in it or at least "Since we have declared 2007 dividends,we are now 5.8% short of budget to make 2008 statement available."
I logged on to my EPF online account today. The date is 14th February 2008. Still no sight of 2008 EPF statement account. The webpage held up with a notice 'Statement for 2008 will be made available after dividend 2007 has been declared". (click on the picture).
It's almost a month since it was announced yet I cant get hold of my 2008 Statement to date. Billions of money spent on IT infrastructure yet same lousy service, same sh*t. They might as well put up a notice "We are in dire need of 5.8% donations to make this happen." to put some humor in it or at least "Since we have declared 2007 dividends,we are now 5.8% short of budget to make 2008 statement available."
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