Credit blacklist for 170,000 PTPTN defaulters unless repayments made, ministry says

Graduates who have defaulted on their National Higher Education Fund (PTPTN) loans will enter Bank Negara’s bad credit list next year unless they start repaying the RM1.2 billion borrowed from the government, Education Minister II Datuk Seri Idris Jusoh said today. Idris said these 170,000 PTPTN defaulters will be given a grace period of three months to avoid being listed in the Central Credit Reference Information System (CCRIS) – which could affect their chances of securing car and housing loans.

“When we announce the implementation of that move later, we will give a period of three months for the borrowers to discuss and then make payments before their names are listed in the CCRIS,” Idris was quoted saying by Bernama today.

In explaining Putrajaya’s revival of its plan to blacklist defaulters, Idris said that some borrowers had taken advantage of  PTPTN’s flexible policy and refused to make any repayments.

“We have the borrowers’ details and know that some of them have lucrative salaries but do not come to PTPTN at all within three years to discuss or make any payments,” he was also quoted saying.

Earlier today, Berita Harian reported that PTPTN will list defaulters in the CCRIS from next year onwards in order to regain the funds.

The 170,000 defaulters are said to owe a total of RM1.2 billion which they borrowed in the 1998 to 2010 period.

Many students borrow from the PTPTN but the fund is itself teetering under the burden of unpaid loans and has resorted to blacklisting defaulters so that they cannot leave the country.

In February this year, Malay Mail Online reported PTPTN saying in a recent statement then that as many as 468,592 borrowers have defaulted on their loans amounting to RM3.3 billion as of November 30, 2013.

The fund said that as of end of November it has issued study loans to 2.34 million people, totalling RM53.23 billion.

On August 21 last year, the Cabinet scrapped Putrajaya’s plan to list PTPTN defaulters in the CCRIS blacklist after the proposed move was roundly criticised across the political divide – including Youth and Sports Minister Khairy Jamaluddin.

Just a day before Putrajaya shelved the controversial proposal last year, Pakatan Rakyat leaders had threatened to kick off a nationwide protest campaign if the government continued with the CCRIS move.

The CCRIS is where information on borrowers to the Credit Bureau is stored. Credit data from financial institutions is automatically kept and processed in the CCRIS and subsequently synthesised into credit reports, which will, in turn, be made available to institutions upon request.

An individual with a bad credit report would automatically face trouble when applying for future loans with these institutions.

Source: https://www.malaymail.com/news/malaysia/2014/10/09/credit-blacklist-for-170000-ptptn-defaulters-unless-repayments-made-ministr/760437

The Cheapest Smartphone in Malaysia

I have just bought a brand new smartphone from Digi with 1-year of FREE Internet plus a Prepaid SIM Pack of RM30 credit and 24-hour FREE calls & SMS to Buddyz™ up to three DiGi numbers free of charge at only RM180. There is no contract involved. I wanted to pay by credit card, but the booth at the mall accepts only cash. I have been using a mobile phone all along but lately, I am unable to perform online banking and receive my TAC numbers (A Transaction Authorisation Code is a unique, 6-digit code that provides an additional layer of identity authentication before you are allowed to perform specific tasks online) from Malayan Banking Berhad via my mobile phone.

The smartphone is a LENOVA A369i which is made in China with the following specifications:

GENERAL	2G Network	GSM 900 / 1800 / 1900 - SIM 1 & SIM 2
	3G Network	HSDPA 900 / 2100
	SIM	Dual SIM (Mini-SIM, dual stand-by)
	Announced	2013, Q3
	Status	Available. Released 2013, Q3

BODY	Dimensions	124 x 64 x 11.7 mm (4.88 x 2.52 x 0.46 in)
	Weight	120 g (4.23 oz)

DISPLAY	Type	Capacitive touchscreen
	Size	480 x 800 pixels, 4.0 inches (~233 ppi pixel density)
	Multitouch	Yes

SOUND	Alert types	Vibration; MP3, WAV ringtones
	Loudspeaker	Yes
	3.5mm jack	Yes

MEMORY	Card slot	microSD, up to 32 GB
	Internal	4 GB ROM, 512 MB RAM

DATA	GPRS	Yes
	EDGE	Yes
	Speed	HSDPA, 7.2 Mbps; HSUPA, 5.76 Mbps
	WLAN	Wi-Fi 802.11 b/g/n, Wi-Fi hotspot
	Bluetooth	v3.0
	USB	Micro USB v2.0

CAMERA	Primary	2 MP, 1600 x 1200 pixels
	Features	Panorama, smile detection
	Video	Yes
	Secondary	No

FEATURES	OS	Android OS, v4.2.2 (Jelly Bean)
	Chipset	Mediatek MT6572
	CPU	Dual-core 1.3 GHz Cortex-A7
	GPU	Mali-400
	Sensors	Accelerometer, proximity
	Messaging	SMS(threaded view), MMS, Email, Push Mail, IM
	Browser	HTML
	Radio	FM radio
	GPS	A-GPS only
	Java	Yes, via Java MIDP emulator
	Colors	Black
		- MP4/H.264/H.263 player - MP3/WAV/eAAC+ player - Organizer - Photo/video editor - Document viewer - Google Search, Maps, Gmail, YouTube, Calendar, Google Talk - Voice memo/dial - Predictive text input

BATTERY		Li-Po 1500 mAh battery
	Stand-by	Up to 288 h (2G) / Up to 288 h (3G)
	Talk time	Up to 14 h 30 min (2G) / Up to 8 h (3G)

MISC

Price group

Source: http://www.gsmarena.com/lenovo_a369i-5850.php

You can purchase the set online at http://new.digi.com.my/ecomm_C/services/default/Whatshot_Internet_Made_Easy?gclid=CjwKEAjw2MOhBRCq-Nr87_j-lDASJAAl4FNhgjUCeBqTbisHLpfOyOw1EvXunvXp0fZee4dtc9TP6RoCYRTw_wcB or at their booths in most malls.  The smartphone is released in September 2013. The cost of the smartphone is only RM150 and you pay for the RM30 credit. Nothing is free.

Can you get a much cheaper smartphone?   

7 Effective Ways to Determine the Worth of a Stock

You have to look beyond the annual financial report of a company to decide the worth of a company‘s shares. The people behind the scene are pivotal in deciding the fate of an establishment. However, the people and the figures will give you a fair view of a company:

1.      Management: It is important to look into the strength and competency of the team and its succession plan to ensure the continuity of the company. Do they look after the interests of the shareholders and operate with integrity, reliability, credibility, and transparency? Are they innovative and introducing new ways of generating more income?  

2.      Earnings per share: It is to determine the profitability of a company. The higher the earnings, the more successful is the company.

The formula: Net income/ total outstanding shares

Example: Profit after expenses, interest, taxes, and preferred dividend: $200000

Total shares: 1000000

 200000/1000000=20 cents per share     

3.      Net asset value per share: The net asset value or the book value of each share of common stock is arrived at by taking the value of a company’s total assets less total liabilities and divided by the number of outstanding common shares. This is to illustrate what you would get if a company is liquidated.  

4.      Price-earnings ratio: It is the market price of a stock divided by the current per-share earnings of a company. Taking from the earnings per share as shown in No.2, with a current stock price of $2, its P/E ratio is 15 ($3/0.2). The ratio is used to determine whether a share is cheap or expensive 

5.      Cash flow: Cash flow is important to meet the ongoing obligation of running a business. The surplus find is also essential to pay a dividend to shareholders. There is a possibility that the company is showing a profit but not generating enough cash because of high outstanding accounts receivable. It is a dangerous sign.

6.      Yield: It is actually the relationship between the annual cash dividend and the current market price of a stock.

Example: Dividend per share 50 cents, current market price per share $2.5

 Calculation: 0.5*100/2.50=20%

7.      Debt-to-equity ratio: It is risky to depend too much on external borrowings to run a business, especially during an economic downturn. However, get more information to find out the high DER. It is possible that the company is expanding.

The formula:  Total liabilities/shareholders’ equity

Example: Total liabilities = 50 million and shareholders’ equity = 100 million

50/100=0.5 (For every dollar of equity there is a debt of 50 cents)

Do you have other ways to evaluate the worth of a company‘s stock? 

Source: http://www.allaboutlivingwithlife.blogspot.com/2011/10/7-effective-ways-to-determine-worth-of.html

Are You Financially Responsible?

There are plenty of ways to get ahead.  The first is so basic I'm almost embarrassed to say it:  spend less than you earn. 

Paul Clitheroe

Here are some soul-searching questions to ask yourself about your financial responsibilities:  

1.      Do you spend less than what you earn?

If you don’t, it means you do not care about overspending and getting into debt. You do not consider the long-term negative consequences. You are thinking that things will sort it out by themselves, but the situation can only get worse because more and more interest will be added to your outstanding debt.  

2.      Do you discipline yourself to avoid spending unnecessarily on your wants?

A wise person will spend only when he or she can afford it. It is only prudent to stick to your budget faithfully and avoid getting into money problems later. 

3.      Are you financially prepared each time you charge an item to your credit card?

 Do not spend impulsively. You have to back each credit card transaction with the same amount of money in your bank account. You do not want to live on credit and get into debt and pay extra on interest charges. You treat a credit card as a convenience and a documented way of making purchases.  

4.      Have you considered all factors before getting a personal loan application?

Is the loan necessary? Are you spending on what you need? Have you factored the monthly repayment amount into your monthly budget? Are you comfortable with the additional outlay? Think carefully before you sign on the dotted line.

5.      Do you honor your monthly loan repayment commitments?

Do you treat your monthly repayments seriously?  Do you always pay when it is overdue or you miss one or two installments? It indicates that either you are taking the matter lightly or you are in financial difficulties.

6.      Do you make it a point to pay your credit card bills promptly and fully every month?

Paying in full when you receive the monthly statement is the only sensible thing to do. Paying the minimum amount is asking for trouble because credit card interest rates are among the highest in the industry. More people are declared bankrupt as a result of unmanageable credit card debt.   

7.      Do you value your creditworthiness?

It involves your financial reputation.  Can you be trusted to get a loan? Are you committed to pay the monthly installments?  The only way to establish your creditworthiness is to demonstrate a good record of your loan repayment pattern and make timely credit card payments.

You are a financially responsible person when you can say yes to all the above questions.  

Source: http://www.allaboutlivingwithlife.blogspot.com/2012/09/are-you-financially-responsible.html

Financial Freedom, Lifestyle and Loan Sharks

According to recent newspaper reports those borrowers who approach loan sharks are no longer confined to gamblers who are heavily in debt. Nowadays more and more professionals are going to them to get financial assistance. They are doctors, lawyers, and even company chief executive officers. As reported in the paper, they are desperate and they have no choice and they are fully aware of the consequences. They are hit by the financial meltdown.

The root of their problems is their lifestyle habit. The rich people work hard and they think long term. They invest their money to earn passive income. While poor people use their hard-earned money to invest in their current lifestyle because they think short term. The habit of managing money is more important than the amount of money that you have.

As long as they follow these tips they will never need to approach loan sharks or “Ah Long”, popularly known in Malaysia and Singapore.

* Save or pay yourself first 10% of your income for your retirement and children’s education fund.

* Do not spend more than what you earn by using your credit cards. Inadvertently you are building up debts that you can't settle later.

* Have a budget and always adhere to it. Your budget will cover your daily essential expenses as well as your monthly housing loan, insurance premiums, and others.

* Always set aside an amount to cover three to six months’ expenses just in case you are out of work. This is your emergency fund.

You can’t live without money, but money is not everything in your life. Your life is made up of your health, your family, your relationship with others, and most importantly, your happiness.

Source:http://www.allaboutlivingwithlife.blogspot.com/2008/11/financial-freedom-lifestyle-and-loan.html

Wise Transition from Debit Cards to Credit Cards

According to an article, Uh-oh: 63% of Millennials don't have credit cards, more than six in 10 people ages 18 to 29 don't have a single credit card in their wallets, reveals a survey conducted for Bankrate.com. 

They prefer to use debit cards. I think it is a good move to get involved with plastic cards, first a debit card, and then a credit card.

Advantages of debit cards

A debit card is linked to your bank account. Each time you use it to purchase an item; the amount is deducted from your account. It is straightforward and no credit is involved.  The most important thing is that no debt will be incurred.

It is a good learning process. You can’t use your card when there is no money in your account. In a way, it is effective to limit overspending. You spend only when you have the money. In the end, you develop a good habit to live within your means     

The bank only charge a nominal yearly fee for the issuance of a debit card

You use the card like cash and yet you don’t have to carry a large sum of money while travelling and reducing the risk of loss and theft.

By using a debit card it is easier to budget your expenses because whatever payment made it is deducted from your bank account immediately.

Like a credit card, a debit card is accepted worldwide.    

Advantages of credit cards

It is a good move to switch to a credit card after using a debit card for some time. After a while, a good habit has already established to use your credit card like a debit card only when there is a fund available in your bank account.  As you grow older you will be more mature to handle a credit card.       

A credit card is essential in your financial life. A credit card is an excellent tool to establish your creditworthiness and build credit scores.   

When you make a prompt payment you don’t incur late fees and interest charges. As a credit cardholder, you can earn cash back or reward points for each dollar you spent.

Furthermore, it is much safer to use a credit card because you can always dispute a transaction that is not in order.

Conclusion

Manage your finance by using a debit card first. Switch to a credit card when you are in control of your money by not spending impulsively.