Thir article written By EUGENE MAHALINGAM eugenicz@thestar.com.my

Invest ahead to generate extra money after retirement.

WHEN I was growing up, I aspired to join the Government. The main reason so was that I could be eligible for a pension scheme. This came from the fact that my parents were both civil servants and they got to enjoy the benefits of a pension when they retired. They still do.

While it’s not much, it’s comforting for them that at their age, they would continue to have an income for as long as they lived. I wanted to be able to look forward to that as well.

Alas, fate – or was it free will? – had a hand to play in my career choice and I ended up taking a job in the private sector. Seeing as I’m having fun doing what I do, I don’t see myself switching careers any time soon. So there goes my plan of getting a pension.

Time to switch to Plan B, namely, the Employees Provident Fund (EPF). It is intended to help employees from both private and non-pensionable public sectors save a fraction of their salaries in a contribution scheme. The contributions are invested to generate income and the funds in the contributors’ accounts are to be used in the event that the employee is temporarily or no longer fit to work.

It primarily applies to retirement, but sickness, disabilities or unemployment are also covered. The EPF also provides a framework for employers to meet their obligations to employees.

As a retirement plan, money accumulated in EPF savings can only be withdrawn when members turn 50, during which they may withdraw only 30% of their balance. Members who are 55 or older may withdraw the entire sum.

Recently, the EPF board declared a dividend of 5.65% for the financial year ended Dec 31, 2009, up 115 basis points over the 4.5% paid for 2008.

According to Fundsupermart.com Malaysia, over the past five years, EPF has been distributing an average annual dividend of 5%. The average real dividend rate for the past five years was 1.7%, after reflecting an average inflation rate of 3.4%.

With that, the important question to ask is: Will the savings from our EPF be enough to sustain us in our retirement years?

Expert advice

In his Personal Investing column, “Enough money for retirement?” last year, MRR Consulting investment adviser and managing partner Ooi Kok Hwa says as the average Malaysian lived to about 75, those who retire at 55 would need to manage their EPF savings for 20 years. But most retirees spend all their EPF money within three years of retirement, he claims.

Ooi provides a breakdown of how a retiree can manage his EPF savings for 20 years.

“We will assume a starting pay of RM1,500, growing at the rate of 8% per annum; an average bonus of two months per annum, average EPF returns of 5%, total EPF contribution of 23% (employer: 12%, employee: 11%) and inflation rate of 3%.

“Our analysis shows that if we are able to live with just one-third (or 33%) of our last drawn salary, the EPF money should be able to support us for 20 years until we pass away at 75.”

According to Ooi, if a person’s last drawn salary is RM13,976 at 55, he can only afford to spend one-third or RM4,612 per month after retirement (1/3 x RM13,976).

He stresses, however, that the computation was based on the assumption that a person would still be able to generate 5% returns after retirement.

“Everyone has different financial situations. If possible, we need to build our own investment portfolio apart from the EPF savings. We may need to seek some part-time jobs after retirement if our financial resources do not permit us to stop working,” he wrote.

“Besides, we need to clear all our outstanding debts before retirement. We also need to buy enough life and medical insurance for ourselves as well as set up education funds for our children.”

Financial planner Wilson Low says a person who’s concerned about his or her future financial well-being has one clear option – invest.

“Anyone who’s worried about not having enough money in their old age should do something about it, to make sure that you do have money to sustain you when you’re old and not working any more,” he adds.

“The obvious thing to do is to invest in something that can help generate an income for you when you’re older. There are various investment avenues out there and with proper planning and research, financial independence is not an impossibility.”

The dividend rate was declared on the back of the highest ever net income achieved of RM19.63bil, an increase of 34.82% from the RM14.56bil recorded in the previous year.

“2009 was a significant year for the EPF as it rode out the impact of the global financial crisis.

“While the EPF continues to be challenged by the fragile economic environment, our investments nonetheless delivered a sound performance for the year,” chairman Tan Sri Samsudin Osman said in a statement yesterday.

During the year under review, 72.53% of total invest ment was devoted to fixed income instruments in line with EPF’s prudent approach, while 27.05% was in equities and the remainder in property.

As of Dec 31, 2009, EPF’s investment portfolio grew 8.55% or RM29.25bil to RM371.26bil from RM342.01bil in 2008.

On prospects for next year, Samsudin said it would be “greatly dependent on the economic performance of the country and internationally.”

He said globally, financial markets continued to be volatile and this might have an impact on the price performance of EPF’s investments and future income.

“We will continue to focus on our key goals of preserving the capital of our contributors and ensuring a satisfactory real rate of return,” he added. — Bernama

KUALA TERENGGANU: Lack of industrial training and poor English are among five factors why graduates are unemployed, according to a study conducted by the Federation of Malaysian Manufacturers (FMM).

Other factors are low problem-solving skills, job-hopping and lack of self-confidence, said Higher Education Ministry student development and affairs director Prof Dr Mohd Fauzi Ramlan.

He said as graduates were bogged down with their poor communication skills in English, they should improve their command of the language.

“They have themselves to blame if they fail to convince employers on their potential,” he said when closing a two-day graduate etiquette programme at Universiti Malaysia Terengganu here Saturday.

He said graduates should also avoid being choosy about jobs and shrug off bad attitude of preferring to work in ones’ hometown. – Bernama

1. I have already enjoyed my life in childhood
2. I love tension
3. I don’t want to spend time with my friends
4. I love night outs
5. I love to work on Sundays and Holidays
6. I want to take revenge on myself (Perfect Reason)
7. I don’t want to marry before 30
8. I don’t want good Salary
9. I want to learn until my death

Before clicking the button to complete the e-filing, take a second look at the figures keyed in. Is the amount of tax calculated the lowest it can be? Here are some tips on saving tax that would not get you in trouble with the law.

1. Know your income: What is taxable and what is not.

Gone are the days when you agonise over the delay in receiving your Form EA from your employer. It is now a law for employers to issue the Form EA to their employees no later than the end of February. The key point to note is not all income in your Form EA is taxable! Scrutinise all the items in Form EA to see if there is any which should be tax-free. For example:

Travelling allowances

If you receive travelling allowance, up to RM2,400 for your travels from home to office is tax-free. What this means is if you receive an allowance of RM12,000 for such travel, you can deduct RM2,400 and only RM9,600 is taxable. Further, travelling allowance of up to RM6,000 for official duties is tax-exempt.

Meal, parking and childcare allowances

Many employees receive these allowances, do you? You would be happy to know that you can enjoy such perks with no worries about paying tax thereon (up to RM2,400 in the case of childcare allowance).

2. Make the most of all tax-free benefits.

Medical benefits

Medical benefits for traditional medicine including ayurvedic, plus maternity benefits are also tax-free.

Interest subsidies

Your employer may have subsidised interest on your housing, car and education loans. In the past, these subsidies would be taxable on you. Now you would be glad to know such interest subsidies are tax-exempt (so long as the total loans do not exceed RM300,000).

Broadband and telephone benefits

Who can leave home without the iPhone, Blackberry or PDAs nowadays? Getting such a device from your employer plus reimbursement for broadband and telephone bills are tax-free. So take advantage and enjoy the latest gadgets and services.

3. Know your limits.

Just as in drinking and driving, stay within the limits to avoid any trouble or triggering tax.

If you have enjoyed any staff benefits like discounts on your company’s goods or services and kept within the RM1,000 a year limit, you should enjoy tax exemption thereon.

Did you receive a small token from your employer on your achievements in service excellence, innovation or productivity which brought on a smile? Don’t blame your employer if they kept the awards below RM2,000 as no tax should be levied on you. Neither is the award for your long service with the company (for more than 10 years) forgotten. As long as your employer kept the value of all awards to you within the RM2,000 limit, the smile should remain on you.

4. Look for more tax-free income.

Bank interest income

You will note a subtle difference in your bank statement nowadays as it no longer shows the amount of tax withheld. Bank interest income is now tax-exempt.

Dividends

Dividends need not be entirely taxable. Have a good look at the dividend voucher. If it states that the dividend is “tax-exempt”, then it is not taxable anymore.

5. Gain more deductions.

Purchase of sports equipment

If the slimming fad has caught on with you, keep the receipts of your purchases of any sports equipment. A claim of up to RM300 is a small incentive to shape those curves and muscles in a big way!

Have receipts or evidence to support more deductions

Medical expenses for your parents certified by a medical practitioner (restricted to RM5,000);

Medical expenses for serious diseases for self, spouse or child (up to RM5,000), including a complete medical examination for self, spouse or child limited to RM500;

Basic supporting equipment for disabled self, spouse, child or parents (ceiling of RM5,000);

Disabled person (self) (RM6,000);

Disabled husband/wife (RM3,500);

Education fee (self) up to tertiary level for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications for a masters or doctorate level, undertaken for the purpose of acquiring any skill or qualification (limited to RM5,000);

Purchase of books/journals/magazines/similar publications for self, spouse or child (up to RM1,000);

Net deposit in National Education Savings Scheme (ceiling of RM3,000);

Purchase of personal computer for individual (maximum deduction of RM3,000 allowed once every three years);

Premiums on life insurance plus EPF and other approved fund contributions (subject to RM6,000 restriction);

Premiums for education or medical insurance (restricted to RM3,000);

Relief of up to RM10,000 on the housing loan interest paid (conditions apply);

Payment of alimony to former wife (maximum total deduction for wife and alimony payment is RM3,000);

Zakat other than monthly zakat deduction from salary; and

Fees/levy paid by a holder of an employment pass, visit pass (temporary employment) or work pass.

The rule of the “game” of keeping your tax liability to the minimum when preparing your tax return Form e-BE is to do it right within the law. For a start, make the website of the Inland Revenue Board, www.hasil.gov.my, one of your favourites from now until April 30 to access its easy to read guides. Happy e-filing!

Via : TheStar

The parties must participate in the course within six months from the time the maids enter the country. Representatives of employment agencies would also join in the course as there had been complaints against the agencies as well.

The Human Resources Ministry would get the list of new maids entering the country from the Immigration Department and use it to notify the parties supposed to attend the compulsory course. In May last year, the Malaysian Employers Federation had appealed to the ministry to organise induction courses, as the foreign trainers conducting such courses in source countries might not be familiar with the local culture here.

All newly-employed maids will be given The the employment of foreign maids guidebook for reference. The guidebook  outlined the role and responsibilities of each party in the service contract; as well as hotline numbers, websites and addresses of related agencies such as the Immigration Department, JTK and police.

The Graduate Employability Management Scheme (GEMS) is a government capacity building initiative to equip unemployed graduates with commercially useful skills and experiences that would enhance their employment opportunities. It is part of the RM7 billion stimulus package announced by the then Deputy Prime Minister and Finance Minister, Dato’ Sri Mohd. Najib Razak (who is currently the Prime Minister), to keep the economy of the country ticking. GEMS is expected to train up to 12,000 graduates over a period of two (2) years.

This progamme is based on the Graduate Employability Enhancement (GREEN) Programme which was organised by Khazanah Nasional Berhad (Khazanah) with the support of various Government-linked companies (GLCs). Moving forward, Khazanah was given the mandate by the Government to manage GEMS and support the government’s initiatives to reduce unemployment among graduates. Dato’ Sri Mohd. Najib Razak launched the GEMS Programme on 13th March 2009 in Putrajaya.

Responsibilities

• The GEMS programme is divided in two parts. in the first part, graduate will undergo a two and a half -months in-house training whereby they will be exposed to skills and qualities that will help improve their confidence and ability to communicate, as well as to manage tasks and responsibilities that are importatnt in their work life.
• This will followed by a six-month on-the-job training at various organisation and institutions including GLCs under the second part of the programme. it will provide valuable working experiences and knowledge to support the participants’ future growth.

Requirements

• Open to Malaysians who have graduated with recognised Degree.
• Fresh graduates/Entry level applicants are encouraged to apply.
• Obtained a minimum CGPA rating 2.5 or its equivalent.
• Applicants must be below 27 years old.
• Applicants with academic qualifications higher than a Bachelors’ Degree are not eligible to apply.
• Applicants must be willing to undergo on-job-training at participating organization nationwide.

Allowance

Participant will receive monthly allowance of RM1000 during the training programme.

How To Apply ?

• Please print and fill up the online application form at http://www.mygemsportal.com.my
• or send to Skim Pengurusan Nilai Siswazah (GEMS), CareerXcell Sdn Bhd, Tingkat 15, Menara Atlan, 161B Jalan Ampang, 50450 KUALA LUMPUR

Closing Date

Closing date for application is on 9hb April 2010.

One of the reason companies participates in career fair is to source for talent. Most of the career fair charges the employer RM1,500 – RM10,000 for the 3-days event. With this big sums of money of course the Recruiter will their best to source out talents. Jobsdb has shared in their website very good article on how to market yourself at the Career Fair.

Career fairs all have one common theme: it’s a chance for companies to meet and screen a large volume of potential job candidates. Whether you’re a fresh graduate new to the job-search process or a seasoned professional, you would want to strategically position yourself above many of the other job-seekers attending the fair. Keep in mind that career fairs are only just one small part of your entire job search process. However, if managed well, they can actually get you on route to your dream job. By following these strategies, you can improve your odds of not being screened out and should lead to increase your chances of obtaining a second interview. Here is some advice on how to maximize your time at the career fair.

5 Things to Take to the Career Fair

1. Copies of your resume (20 to 30 depending on the size of the event). Be sure it represents your knowledge, skills, and abilities effectively. Bring at least two for each company for which you have an interest in. If you have multiple interests or job objectives, make sure you bring enough of each version of your resume. You should also bring versions of your resumes that can be scanned.
2. A smile, a strong handshake, and a positive attitude. First impressions are vital. Approach an employer, smile, and offer your hand when you introduce yourself.
3. A 30-second promo line. Hand the recruiter a copy of your resume and be prepared to expand on it real quick! Share basic information about yourself and your career interests and it should go something like this: “Hello, I’m Shirley. I’m a senior here at Genius University and I’m majoring in English. I’m very interested in a marketing career. As you can see on my resume, I’ve just completed an internship in the Marketing Division of the DB Company in KL. I’ve also taken some courses in business marketing and I’m very interested to talk to you about marketing opportunities with your organization.”
4. Information about the participating organizations. Gather all necessary information about the company and the job you desire. To maximize the brief time you have with each employer, you need to know how your skills and interests match their needs. And don’t just concentrate on the heavyweights. There are often great opportunities with companies which you are not familiar with.
5. Energy and strategy! Career fairs require you to be on your feet moving from table to table for an hour or so. Each time you meet someone, be at your best, as refreshed as possible. You also need to devise a strategy or plan of attack for the fair. We suggest meeting with your top choices first thing in the morning, interviewing with your other choices in the middle of the day, and returning to your top choices at the end of the day to thank them again for their time.

5 Things Not to Do at the Career Fair

1. Don’t cruise the booths with a group of friends. Interact with the recruiters on your own. Make your own positive impression!
2. Don’t carry your backpack, large purse, or other belongings with you. Carry your resume in a professional-looking folder or in a small briefcase. It will keep your resume neat and handy, and give you a place to file business cards of recruiters you meet.
3. Don’t under dress. Conservative business attire is essential. Know what the expected attire of your profession is and dress accordingly because a career fair is a professional activity–perhaps your first contact with a future employer.
4. Don’t wing it with employers. Do your homework! Research the companies just as you would for an interview. You’ll be able to tell on why you want to work for the organization and what you can do for them.
5. Don’t turn up late, especially during the last half hour of the event. Some employers may have come a long distance to attend the fair and may need to leave early. If you come late, you may miss the organizations you wanted to contact!

5 Things to Take Home From the Career Fair

1. Business cards from the recruiters you have met. Use the cards to write follow-up notes to those organizations which interest you the most because career fairs are all about networking. You can also network with your fellow job-seekers in terms of sharing information about job leads.
2. Notes about contacts you made. Take paper and pen with you to write down important details about particular organizations, including names of people who may not have business cards. Take a few minutes after you leave each table to jot down these notes.
3. Information about organizations you have contacted. Most recruiters will have information for you to pick up, including company brochures, CDs, position descriptions, and other data. You won’t have time to deal with these at the fair!
4. A better sense of your career options. If you have used the event correctly, you will have made contact with several organizations that hire people with your skills and interests. In thinking about their needs and your background, evaluate whether each company might be a match for you.
5. Self-confidence in interacting with employer representatives. A career fair should have given you ample opportunity to practice your interview skills in a less formidable environment rather than a formal interview.

So gear yourselves up and come to the fair — prepared! Your dream job may just be right there.

In Malaysia the notice period for termination (i.e resignation) varies from one company to another from 24 hours notice up to 3 months. Of course there are pros and cons having long notice period especially if you decided to leave the company. The worst scenario is when the potential employer not even consider you when they know that you require 3 months to come onboard, unless you have skills that hardly can be find in the market.

Does it means that you will stuck in the company forever ? Of course not ! You should consider the following tips :

Annual leave.
This is one of the simple option that you can try but need to sacrifice your annual leave. Keep your annual leave as many as you can (subject to company policy on leave carry forward) which can be used to set off against your notice period. For example, if you have 20 days leave balance, you just need to give 2 months notice instead of 3. Don’t forget to highlight this during interview.

Ask for waiver of notice period
You can try this option, please write officially to HR Dept and give good reasons. In most cases they will decline your request as this will set precedent for future cases. After all there is no point having notice period in T&C if someone can waive it.

But there are cases this got their approval in cases like you joining the Co. competitor, so they afraid you can’t perform the job efficiently, the resignation due to joining Government services which require you to serve short notice, following your husband overseas etc.

Convince the future employer
Convince the future employer on your competency and capability to perform the job. Make them happy with you and if they think that you are the best, they will wait even in 3 months time. And if they are serious about filing up the position fast, they will even pay for your notice period.

You pay the indemnity in lieu of notice period
Not many want to do this, but if you are given offer that worth better than your current job in term of salary, benefit, why NOT ! Remember, good offer doesn’t come every day. Sometimes, you have to sacrifice a bit for your future.

During this 18 months training programme, you will experience 2 international assignments for a duration of 6 months respectively to gain knowledge and exposure from a wide variety of cultures and nationalities. Upon successful completion of the program, you will progress into a permanent position in Jotun Malaysia.

Positions available:

1. Regional Marketing – Responsible for marketing and brand management of decorative paints across South East Asia
2. Regional Supply Chain – Responsible for developing strategies and sourcing plans for South East Asia and creating systems to support regional purchasing process
3. Regional Human Resources - Responsible for HR projects/activities and to assist in implementation of HRMS in South East Asia

INTERNATIONAL MANAGEMENT TRAINEES
(Selangor)

We are looking for:

• Dynamic, energetic and resourceful talent with a drive to succeed
• Fresh graduate from a recognized university. Applicants with less than 3 years working experience are also encouraged to apply.
• Excellent academic track record, preferably with Master Degree in relevant field

We offer:

• Competitive remuneration package (RM3,500)
• Full expenses borne during assignments abroad
• On-the-job training through work based assignments and cross border trainee gathering
• Professional growth within a global company

The deadline for International Management Trainee application is 1st March 2010 and the programme will commence in August 2010. If you have what it takes to be a future leader, apply now at www.jotun.com/career

1. Tan Sri Robert Kuok, the Kuok Group
2. Tan Sri Ananda Krishnan of Maxis Group
3. Tan Sri Lee Shin Chen, IOI Corporation Bhd
4. Tan Sri Teh Hong Piow, Public Bank
5. Tan Sri Lim Kok Thay, Genting Berhad
6. Tan Sri Quek Leng Chan, Hong Leong Group
7. Tan Sri Syed Mokhtar Albukhary, Albukhary Foundation
8. Lim Goh Tong’s widow Puan Sri Lee Kim Hua,
9. Tan Sri Tiong Hiew King of Rimbunan Hijau Group
10. Tan Sri Vincent Tan of Berjaya Group.

There were five newcomers in the list — Lee Swee Eng of the KNM Group, brothers Datuk Shahril Shamsuddin and Shahriman of Sapura, Datuk Seri Nazir Razak of CIMB Group and OSK Holdings’ Ong Leong Huat, who makes a comeback to the list after a one-year absence. — Bernama

Date : Monday, 3rd May 2010
Time: 1030-1800 hours
Venue: Curian Event Hall 7 , Floor 5-18-1 Higashi Ooi Shinagawa-Ku, 140-0011 Tokyo

Entrance fee for MSAJ members is free while for non-members 1000yen. For details visit official page of MSAJ Career Fair 2010.

The deal announced Wednesday reflects HotJobs’ diminishing value as the high employment rate undercuts the demand for help-wanted advertising. Yahoo bought HotJobs for $439 million in 2002.

The sale is part of Yahoo’s effort to jettison services that aren’t doing well or don’t fit with its focus on news, entertainment and communications.

As part of the deal, Monster.com will provide Yahoo with job listings and other employment content. Monster hopes to take control of HotJobs between June and October.

Further information on the fair will be added to UKEC’s website over the next few weeks so keep checking for updates!

Tips :

Read here on tips for attending any career fair.

MCTF 2010 – Career & Training Fair is back. Since 2002, this Career & Training fair has evolved and become the biggest fair ever in Malaysia. MCTF’10 returns from 16 to 18 April 2010 & 8 to 10 October 2010 at Mid Valley Exhibition Centre, Kuala Lumpur.

Since 2002, MCTF has attracted over half a million graduates and experienced professionals, filling out thousands of positions in hundreds of participating companies.

Details as follows :

Spring Fair : 16 – 18 April 2010
Autumn Fair : 8 – 10 October 2010
Venue : Mid Valley Exhibition Centre, KL
Time : 10am – 7pm

What’s New

INTERVIEW LOUNGE FOR RM100K+ SENIOR JOBS
Looking to fill that elusive senior position? Let us help you! MCTF’10 will encourage the visitation of senior professionals by providing a special Interview Lounge just to facilitate the dialogue & discussion process between you and the senior candidates. This is an ideal platform to meet and attract suitable senior candidates to fill your RM100K+ Senior Jobs!

Tips :

Read here on tips for attending any career fair.