All About Permodalan Nasional Berhad (PNB)

Image source: http://www.freemalaysiatoday.com/

All About Permodalan Nasional Berhad (PNB)

Permodalan Nasional Berhad (PNB) Incorporated on 17 March 1978, PNB was conceived as a pivotal instrument of the Government's New Economic Policy to promote share ownership in the corporate sector among the Bumiputera (son of the soil), and to develop opportunities for deserving Bumiputera professionals to participate in the creation and management of wealth.

Permodalan Nasional Berhad (PNB) has emerged as the country's premier investment institution. As an investment vehicle for the Yayasan Pelaburan Bumiputra (YPB), the core function of PNB is to evaluate, select and acquire a sound portfolio of shares in limited companies with growth potential. Being an organisation that specialises in investment, PNB in essence acts as a warehouse, whereby shareholdings in these limited companies are placed in trust funds and sold to unit holders in the form of smaller units.

From its first unit trust scheme, the Sekim Amanah Saham Nasional (ASN) launched on 20 April 1981, right up to its latest product, Amanah Saham Bumiputera 2 (ASB 2) launched on 2 April 2014, PNB through its wholly-owned subsidiary, Amanah Saham Nasional Berhad, has been instrumental in creating a paradigm shift and changing the mindset of Malaysians, particularly the Bumiputera community, in the areas of savings, investment and financial planning, and the way they view risks and returns on investment. The overwhelming response from Malaysians from all walks of life and income strata towards PNB's unit trust funds has been manifested in PNB's ability to mobilise more than 11.6 million accounts to date.

With the money generated from the public, PNB has acquired many large and strategic companies, and many are industry leaders in their own respective fields, such as financial, insurance, plantation, property, automotive, logistics, infrastructure, pharmaceuticals and chemicals. The drive for value has prompted PNB to undertake a series of corporate exercises, where companies under the PNB portfolio were reorganised, merged or acquired to increase their operational efficiency and to attain synergistic benefits, thus enabling PNB to achieve its aim for consistent returns.

Source: http://www.pnb.com.my/

Summary of Fuel Prices in Malaysia in Year 2015

Below figure is illustrating the summary of fuel prices in Malaysia in year 2015, which was being updated based on monthly basis:

Based on the tabulated graph, the lowest prices were obtained on February 2015, which were RM1.70 per litre for RON95, RM2.00 per litre for RON97 and RM1.70 for the regular Diesel. On the other hand, the peak for RON95 and RON97 were on July 2015, whereas the peak for regular Diesel was on June and July 2015, at the price of RM2.15 per litre, RM2.55 per litre and RM2.05 per litre respectively.

To compare the prices in terms of percentage on January 2015 and December 2015, RON95 has increased by 2.09% and RON97 has drastically increased by 16.11%. In a contradictory manner, it was found that the regular diesel has decreased by 1.55%.

Roles and Functions of Bank Negara Malaysia (BNM)

Roles and Functions of Bank Negara Malaysia (BNM)
The roles of the Bank are supported by 39 departments/units in the Bank covering seven functional areas as follows:

1. Economics & Monetary Policy
Primarily provides good technical and research support on growth-related issues to enhance formulation of monetary and credit policies in promoting monetary stability and ensuring the availability of adequate credit to finance economic growth.

2. Investment and Operations
Manage domestic liquidity and exchange rates to ensure that monetary policy targets are achieved as well as managing external reserves to safeguard its value and optimise its returns. It also has the responsibility of providing advice and assistance to the Government in the area of debt and fund management and contributing to domestic financial market development.

3. Regulation
Promote financial sector stability through the progressive development of sustainable, robust and sound financial institutions and financial infrastructure, thus enabling a competitive local financial industry to be resilient against the changing future environment as well as leads initiatives to enhance access to financing. It also formulates and implements policies and strategies towards building and positioning Malaysia as a premier integrated Islamic Financial Centre and enhance the financial capability of consumers.

4. Payment Systems
Develop policies and strategies to promote reliable, secure and efficient clearing, settlement and payment systems in the country.

5. Supervision
Develop, enhance and implement an effective surveillance framework to ensure safety and soundness of financial institutions and to enforce sound practices in them.

6. Organisational Development
Spearhead the Bank's strategic management, organisational-performance management and programme management functions to drive its performance-improvement processes and strengthening the capacity building of the Bank. It also leads and drives human resources initiatives and other strategic activities to ensure that the overall Human Capital Management framework is implemented effectively.

7. Communications
The communications function has assumed increasing importance in response to the heightened demands of the various stakeholders, seeking greater transparency and disclosure.

Do get to know about Bank Negara Malaysia (BNM)!

Source: http://www.bnm.gov.my/

All About Bank Negara Malaysia (BNM)

All About Bank Negara Malaysia (BNM)
Bank Negara Malaysia (the Central Bank of Malaysia), is a statutory body which started operations on 26 January 1959. Bank Negara Malaysia is governed by the Central Bank of Malaysia Act 2009. The role of Bank Negara Malaysia is to promote monetary and financial stability. This is aimed at providing a conducive environment for the sustainable growth of the Malaysian economy.

Bank Negara Malaysia's monetary policy stance is to maintain price stability while remaining supportive of growth. Bank Negara Malaysia is also responsible for financial system stability. This is achieved by developing a sound, resilient, progressive and diversified financial sector which serves to support the sectors of the real economy. It also plays an important function in implementing initiatives to deepen and strengthen the financial markets, including the foreign exchange market.

Bank Negara Malaysia has played a significant developmental role in developing the financial system infrastructure in advancing the financial inclusion agenda. This is to ensure all economic sectors and segments of the society have access to financial services. In addition, Bank Negara Malaysia also oversees the nation's payment systems infrastructure which emphasize on the efficiency and security of the financial systems.

As the banker and adviser to the Government, Bank Negara Malaysia provides advice on macroeconomic policies and the management of public debt. Bank Negara Malaysia is also the sole authority in issuing the national currency and in managing the country's international reserves.

Do find out about the Roles and Functions of Bank Negara Malaysia (BNM)!

Source: http://www.bnm.gov.my/

Why Ringgit Falls Year 2015

Image source: www.malaysia-chronicle.com

Questions have been flying around on the falling of Ringgit in year 2015. What have caused Ringgit to fall? Could it be considered as the crisis of Ringgit? Could it be any worse? The implementation of 6% GST is not serving the country? To challenge the doubtful of falling Ringgit, discussions have been conducted around, infinitely, indefinitely and indirectly. For simplicity of reading for all readers, we shall disregard all of the complex numerical terms, which includes the percentage, ratio, forex and whatever value against whatever currency. Below points could possible reflect the falling of Ringgit:

1) Tumble of crude oil price (since June 2014)
Globally, the supply of oil exceeds the demand, causing the price of oil tumbles. Oil is one of Malaysia’s main exports, so that’s why!
Read more: http://themiddleground.sg/2015/07/10/ringgit-falling-not-good-news/

2) Falling forex reserve (since early 2015)
Fuelling speculation that Bank Negara Malaysia (BNM) is digging into the reserves to shore up Ringgit. The lower a country’s forex reserves, the less it is able to do to shore up a sinking currency. Economists say many Malaysians are also sending their money overseas because the falling value of the Ringgit.
Read more: http://www.themalaysianinsider.com/malaysia/article/heres-why-the-ringgit-rout-isnt-slowing-and-how-bad-things-could-get

3) Devaluation of China’s renminbi (since August 2015)
China, the world's second-largest economy after the U.S., devalued its currency in a bid to help exporters. The country is grappling with a softening economy and wild swings in the stock market. A weaker renminbi implies cheaper Chinese exports, making goods produced elsewhere in the region less competitive
Read more: http://www.cnbc.com/2015/09/16/why-chinas-yuan-may-be-set-for-15-devaluation.html

4) Political scandal of Malaysia’s 1MDB debts (since July 2015)
Relevant or irrelevant, the weakening of Ringgit could be caused by this scandal, indirectly. In July, the Wall Street Journal published a report alleging nearly $700 million flowed from the 1MDB fund to Prime Minister Najib Razak's personal bank account. Najib has repeatedly denied any wrongdoing. Singapore and Switzerland have both suspended bank accounts tied to 1MDB and in the U.S., media reports said the Federal Bureau of Investigation (FBI) is investigating as well
Read more: http://www.cnbc.com/2015/09/24/

Stop wondering! Start pondering! Please help Mr. Ringgit!

Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear)

Established in 2008, Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) is a wholly-owned subsidiary of Bank Negara Malaysia (BNM).

MyClear is built to operate world-class payment systems and financial market infrastructures that safely, reliably and efficiently enable the functioning and development of Malaysia's financial system as well as the economy as a whole.

MyClear Services

• Real Time Electronic Transfer of Funds and Securities (RENTAS) - Real-time gross settlement of wholesale funds transfers and securities trades denominated in Ringgit as well as Renminbi. RENTAS' Renminbi settlement service supports Malaysia's role as a recognised off-shore Renminbi clearing hub.
• Debit Securities Services - end-to-end facilities for issuers, arrangers and investors covering the entire bond lifecycle from issuance to trade settlement and depository:
• Fully Automated System for Tendering (FAST) - automated issuance and tendering system for all government securities, BNM papers, private debt securities and money market instruments, as well as a repository of reference information of all active debt securities issued in Malaysia.
• RENTAS Depository - facilities custody of all unlisted debt securities in Malaysia. Today, we operate the largest depository for sukuk instruments in the world, as well as the largest debt securities depository in ASEAN.
• Sistem Penjelasan Imej Cek Kebangsaan (eSPICK) - Malaysia's national cheque clearing house.
• Interbank GIRO (IBG) - A funds transfer system that allows account-to-account credit transfers between 42 participating banks in Malaysia.
• JomPAY - Malaysia's national bill payment scheme where customers can pay any registered biller from Internet or Mobile banking by drawing funds from Current, Savings or Credit Card accounts. Billers need only sign up with one bank to collect payments via 42 banks.
• MyDebit - Malaysia's domestic debit card scheme, which allows point-of-sale payments using ATM cards issued by banks in Malaysia.
• FPX - Direct-to-bank Internet payment gateway, which facilitates Internet payments and e-commerce purchases using savings and current accounts.
• Direct Debit - Allows billers and merchants to debit a consumer's bank accounts on a periodic basis to collect recurring payments.

More info: http://www.myclear.org.my/

FREE IBFT Service until December 2015!

FREE FREE FREE!

From 1st October 2015 to 31st December 2015, Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member participating banks are offering FREE service for Instant Interbank Fund Transfer (IBFT) via internet or mobile banking. That's right! Service fee waiver for Instant Interbank Fund Transfer (IBFT)! FREE! Zero charges! Every thing is instant! Ultimately, you get to save some of your Ringgit!

Instantly, all users get enjoy the following:

1. Interbank Funds Transfer
2. Credit Card Repayment
3. Loan Repayment
4. Financing Repayment

The participating member banks are:

Below article is cited from BERNAMA

MEPS, Banks Offer Free Interbank Funds Transfer Service From Oct 1 Till Year-end

KUALA LUMPUR, Sept 29 (Bernama) -- Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member banks will waive the fee for its real-time Instant Transfer, previously known as Inter-bank Funds Transfer (IBFT) service, from Oct 1, 2015 to Dec 31 2015.

In a statement Tuesday, MEPS said the zero fee was applicable for transactions on the Internet and mobile banking channels of the participating banks.

However, the Instant Transfer fee at automated teller machines (ATMs) remained at 50 sen, it said.

In June 2015, the interbank network provider imposed a reduction of between 50 per cent and 88 per cent from the previous IBFT fee range of between RM1 and RM4 which resulted in a standardised ceiling fee of 50 sen at ATMs, Internet and mobile banking channels.

Its Group Managing Director, Zulkarnain Kassim, said the initiative showed that the banks' and MEPS' full support for Bank Negara Malaysia's (BNM) e-Payment adoption.

"In light of the current economic situation, it is also timely that the banks introduce the fee waiver that will benefit Malaysians in alleviating any financial difficulties," Zulkanain said.

By 2020, BNM is targeting to increase the number of e-payment transactions per capita from 72 to 200 and reduce cheques from 177 million to 100 million per year.

The 15 banks that offer Instant Transfer services via their Internet Banking are Agrobank, Affin Bank, Alliance Bank, Bank Islam, Bank Muamalat, Bank Rakyat, CIMB Bank, Citibank, Hong Leong Bank, Kuwait Finance House, Maybank, OCBC Bank, Public Bank, RHB Bank and Standard Chartered Bank.

The six banks that offer Instant Transfer services via Mobile Banking are Bank Islam, CIMB Bank, Citibank, OCBC Bank, Public Bank and Standard Chartered Bank.

-- BERNAMA
source: http://www.bernama.com/bernama/v8/newsindex.php?id=1175127

If you uncertain about MEPS, do check it out 'MEPS? What or Who is MEPS?'.