Unhappy with CPF and angry with AK. (Alamak! Why you so like that?)

Whenever I blog about the CPF, I must be prepared for some debate and it happened again last night.

I always welcome debates as long as they are civil and constructive.

Please don't be rude.

Don't tell people to get a rope and hang themselves, for example.

I am so sorry to have caused the reader so much angst. :(

Since following my blog upsets him, I will do him a big favor by blocking him.

I don't usually block or ban readers from my FB page.

If I did it to you, you must have been pretty bad.

Don't follow my blog.

Don't worry. Be happy. :D





I am glad to share an example of a civil debate with another reader here.

Reader says... 
Our CPF removes choice. 

One may suddenly need money for some valid reason eg temporary retrenchment but one will not be allowed to take out even a small sum to meet daily needs. 

Malaysia's EPF and Singapore's CPF have some good aspects. 

EPF is like a bank which allows withdrawal of money when needed but the same bank tells CPF subscriber that no money can be released whatever the need however urgent.

Would you put your hard earned cash in such a bank for it to dole out paltry sums now and then saying its looking after your money for old age?

While CPF is good , it needs a little flexibility in disbursement of funds which after all belong to the subscriber.

What use are better returns when one cannot enjoy them at will and perhaps will only be given to your nominee on your demise?






AK says...

In reply to: "Would you put your hard earned cash in such a bank for it to dole out paltry sums now and then saying its looking after your money for old age?"

Such a comparison is misleading.

I think we have to be clear what the CPF is. 

CPF isn't a bank although we can use it like one when we turn 55 if we have the FRS in the CPF-RA then.

For people who do not even have the FRS (or BRS) in their CPF accounts and wish to draw upon their CPF savings whenever they have a financial bottleneck, they need to do serious financial planning pronto.

Also, CPF LIFE is not a bank that doles out a paltry sum.

The comparison is again misleading.

Once your savings in a bank runs out, you are out but not with the CPF LIFE which pays you for life.





In reply to: "What use are better returns when one cannot enjoy them at will and perhaps will only be given to your nominee on your demise?"

It is precisely this type of thinking that leads to "Return Our CPF" rallies in Hong Lim Park.

Many people who supported the rallies had very little savings and yet they wanted to utilise their CPF (retirement) savings "to send children to study overseas", "to go on a holiday", "to go on a pilgrimage" etc.

The higher interest rates in our CPF-RA is to help us better fund our retirement and not to be depleted at a whim which is what many would do if given a choice.





See the latest comments in the following blogs:
1. Retirement funding assurance for average investors.
2. When to get a private annuity.
3. Food inflation in Singapore and Malaysia.
4. We do better at managing our savings than CPF does.

Related posts:
1. Crazy Rich Asians or Pragmatic Rich Asians?
2. Use CPF as a savings account.

Food inflation in Malaysia and Singapore.

We are always saying how things are cheaper across the Causeway and I do it too. 

I have said it often enough to get rebuked by some of my Malaysian friends.

"You Singaporeans only find it cheap because of the strong S$. 

"Life is actually very difficult for common Malaysians, you know.

"And you people come here and drive prices up.

"You think the people in Johor like higher prices?"





I grew up loving McDonald's fast food.

It was always a treat.

These days, I still go to McDonald's and I like ordering the S$2.50 Fillet o fish. 

Since they dropped the price to S$2.00 before increasing it to S$2.50 for the burger alone, I have not had the meals.

The meal comes with fries and a drink but costs S$5.00.

It is just paying more for extra (and empty) calories which I don't need.





In JB, I remember it cost me about RM9.00 for a Fillet o fish meal.

That is less than S$3.00!

It is like paying 50c for fries and a drink!

It is a no brainer for me.

Of course, I would take the meal! 

Yes, I know.

Suddenly, I am OK with with the extra (and empty) calories.

Bad AK! Bad AK!





For the Malaysians, however, paying for a Fillet o fish meal in Malaysia is like Singaporeans paying for a Fillet o fish meal in Singapore.

It is not more affordable for them.

Actually, it is the opposite.

I found out that an optometrist makes about RM4,000 in Malaysia but an optometrist makes about S$4,000 in Singapore.

The former pays RM9.00 (0.225% of his salary) while the latter pays S$5.00 (0.125% of his salary) for the same meal.

Although inflation is affecting food prices everywhere, it is worse in Malaysia than in Singapore.

Malaysia Food Inflation  Forecast 2016-2020

Food Inflation in Malaysia is expected to be 4.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Food Inflation in Malaysia to stand at 4.70 in 12 months time. Source: HERE.

Singapore Food Inflation  Forecast 2016-2020

Food Inflation in Singapore is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Food Inflation in Singapore to stand at 2.90 in 12 months time. Source: HERE.

I have made a mental note to be more sensitive when I talk about the cost of living when I am with my Malaysian friends.

Malaysia cuts food subsidies.




Related post:
We manage our savings better!
Malaysia and India pay higher interests in similar pension schemes but our Singapore dollar is rated AAA and has appreciated against the currencies of many other countries.

Failure of 1MDB: More than economic consequences.

With the leaked video, it seems like the money did get transferred into Najib's personal account.

This explains why he has not denied the allegations and it explains why he is fighting so hard to stay in power. If he stepped down, he would be in danger of having the law come after him. A term in prison would almost be certain then.

Muhyiddin alleges Najib admitted to misapropriating funds

"Leaders are vulnerable to making big mistakes, such as violating the law or putting their organizations' existence at risk. Their distortions convince them they are doing nothing wrong, or they rationalize that their deviations are acceptable to achieve a greater good." Bill George

In ancient China, the people believed that if the Emperor was immoral or unethical, the country would suffer. It might be superstition but since Najib took power, Malaysia has had so many problems and disasters.

Being Malaysia's neighbour, Singapore should naturally be concerned.

Yes, if 1MDB should go kaput, there could be economic consequences which would affect Singapore. For example, the High Speed Rail project could be put on hold.

However, the Malaysian people's feelings against Najib could be so strong that the current tension could escalate and lead to civil unrest. The scary bit? It looks like it could actually happen.

I hope the unrest does not spill over into Singapore if it does happen.

Coffee with Raymond Ng: 8.5% yield? Don't play play.

UPDATE (18 Jan 17):
The Singapore dollar climbed to a new record high against the Malaysian ringgit early Wednesday morning (Jan 18), reaching as high as S$1 to RM3.1474, showed Bloomberg data. Source: TODAY.
--------------------------





Raymond is a very diligent investor who regularly makes very sensible and balanced comments in ASSI and on my FB wall.

In relation to my last blog post, he made a series of comments on my FB wall with attachments that we had trouble transferring to the comments section here.





Hence, this guest blog which is a compilation of Raymond's comments on my FB wall and more:

Don't play play with Malaysia G fund..... the G is bankrupting soon.

"The more than US$11 billion (RM38 billion) debt-ridden 1MDB, claiming it has assets worth more than RM48 billion, has twice failed to settle only RM2 billion in loans? 

Common sense, what does that tell you? 

Why would potential investors want to risk their money on such a super heavy debt-ridden 1MDB?"  

(1MDB = 1Malaysia Development Berhad)
Source: http://theantdaily.com/Main/Zeti-led-BNM-to-go-after-1MDB-Don-t-joke





The 8.5% yield is not attractive if we compare to MY FD rate.

In 1990+, the FD is 7~8%, so the yield spread is less than 2% but with lots of uncertainty. 

Even for 2010+, its FD rate is ~3.5%, so the spread is slightly attractive.

MY FD Rate from 1980~2009

Another consideration is SG/MY exchange... MY ringgit is depreciating against SG. 

You will lose out if you use SG dollar to invest.

Source: Yahoo Finance.

Tony Pua spoke about the Malaysia G poor handling of Malaysian Sovereign fund. 
That's why I said MY G is bankrupting soon.
Good 40 mins. 
MY bond is not like SG AAA rating.





Raymond has certainly provided us with much food for thought.
Related post:
A steady dividend payer with yield of 8.5% since 1990.

A steady dividend payer with yield of 8.5% since 1990.

AK doesn't know everything, for sure. So, when faced with a question of whether to invest in a sovereign fund of another country even if it should be a neighbouring one, I must be honest to say that I don't have enough knowledge to even write a simple critique on it.

Here are the emails concerned:

Dear AK,

I have been a reader of your blog, since last year. Has been inspired by how you achieved the passive income from REITS!! Still in the learning curve, and paying tuition fee now.(having paper loss in Lippomall trust and Sabana)

Refer to the email subject, I think maybe it would be interesting to you on these few unit trust or fund managed by Malaysian supported investment firm? More details of this firm can be found in their official website http://www.asnb.com.my/index_e.php.

You can change to english version at the top right corner "versi english",

Just some background of these funds.

The firm was initiated by government in 1980s, they run several funds, some of them are open to all Malaysian, some of them are open only" Bumi - putera" (son of soil, a.k.a. Malays and Indigenous people from Sabah and Sarawak).

The first fund open only to Bumi-putera, has been producing dividend not less than 8.5% pa since its inception in 1990. The highest being 10~12%pa during the good years of Malaysia economy. This fund has serve well as passive income for the Bumi-putera.(long queue at the broker counter during long weekends, festive season, year end holiday etc)

In late 90s and early 2000, they have opened up few more new funds, which are open for all Malaysian, but as usual there are quota for each race. The other funds that are open to all Malaysian, generally produce return slightly less than the first fund, which are open only to Bumi-putera(OK, you know this is Malaysia).

I have attached the annual report for 1 of the funds I invested (AK did not include in this blog post), wish you to give some comment on their financial position. Report is in Malay, I have tries to put down as much as translation i could at the side for each main term in balance sheets and cash flow statement. Other comments from managers, auditor, I hope you can use google translator, if you find it important.

There are some interesting facts on these fund:- unit price is fixed at RM1, so NAV is unknown

- no sales charge, no cost for transaction(buying and selling)
- dividend are paid in new units
- upper limit of the fund is set at RM14bil(or 14bil units). It has not reach the limit yet.(Note: Some of fund has no upper limit, Ponzi Scheme??)
- payment of dividend might actually come from the fresh fund for the new units, as I found their dividend + interest + gain from selling stock, is barely enough to cover the distribution(again, it can be in the form of new units)

I am not an expert in reading financial statement(still learning), hoping you can enlightened me!

A follow up email:

Hi AK,

First of all, really appreciate your reply.

My siblings have been pouring money into these fund without knowing how actually it run. Kind of worrying me.

But it has not stop in paying dividend since its inception. Some time political will can not be measured using common financial terms.

It will be great if you can share it at ASSI. Hoping to get some answer from other readers.
Regards
K

If anyone should have any insights to share, please comment in the usual fashion. Thank you.

The head of a typical HDB flat household speaks (Part 3).

In part 3 of our correspondence, we talked about investing in real estate for rental income:





Hi Ak

Another friend of mine (same age as me)is so concerned with unemployment before 50 yr old, that he keeps urging us to buy a condominium and then collect rental income on it. 

He already owns an apartment in KL, and claims that he is successfully collecting rent of it. But he always avoid my question when I ask about currency & political risk of owning foreign properties. 

Now he is aiming for his 2nd rental property in Singapore. He said that prices are coming down and good time to buy in 2015 or 16. But again he avoid my question when I ask him about maintenance costs affecting rental yield and the oversupply of condos/ foreign labour cut back in Singapore which makes it risky strategy.

When I suggest buying S REITS as an alternative, he said it's not worth doing it until he has a million dollar capital base.

He also say meeting minimum sum in CPF is no big deal for him..

I am highly suspicious of his recommendation.

Good if I can hear your objective view on owning a physical property vs buying REITS. 

Thank you

C

My reply:

Hi C,

Well, there will always be risks in investments. Risks cannot be avoided but they can be understood and even managed.

Your concerns with regards to buying a property overseas for rental income are valid. I hope that your friend is still doing OK with the RM's decline in value against the S$.

Anyway, is it better to buy properties than to invest in S-REITs? The topic is well discussed by many people before. Personally, I feel that both are good investments as long as the price is right. Quite simple, really.

I don't know what your friend has in mind but if it is something vague like buying properties in Singapore in 2015 or 2016 is a good idea because prices will come down, I think he needs to do a bit more research and analysis.

Personally, I feel that any property investment must be able to provide at least a gross yield of 5% to 6% to make it worthwhile. This is a primary consideration for me and I blogged about the Rule of 15 before. Then, there is a whole gamut of other considerations which I have blogged about in a piecemeal manner before too.

Ultimately, I would say to do what you feel comfortable with. There are so many paths to financial freedom. Choose a path you are not only comfortable with but one which you are sure will bring you to where you want to go. :)

Best wishes,
AK

Related posts:
1. Rule of 15.
2. Journey to financial freedom is not a race.
3. Buying a property in Iskandar, Johor.
4. Don't think and grow rich. 3 points to note.
5. The head of a typical HDB flat household speaks (2).

Tea with Matthew Seah: Thoughts on having a regional common currency (Part 2).

Is a common currency for member nations of ASEAN feasible? Matthew goes through some pertinent points:

Economic development

ASEAN countries have highly diverse economic development stages. According to the International Monetary Fund (2011) Singapore and Brunei, the richest countries in ASEAN, has a GDP (PPP) per capita of $59,936 and $49,517 respectively. In comparison, Myanmar’s GDP (PPP) per capita is a mere 2% of Singapore’s at $1,327. In fact, the sum of GDP (PPP) per capita of the other 8 countries namely, Malaysia, Indonesia, Thailand, Vietnam, Philippines, Laos, Cambodia, and Myanmar is less than Brunei, at $43,676. 

This degree of diversity in income could make it near impossible to sustain a monetary union amongst ASEAN countries. Just like how the PIIGS of the European Union (EU) is causing the richer nations in the EU to pay for their fiscal incapabilities, the “less fiscally endowed” countries will cause Singapore and Brunei to pay for their debt in the event of an economic shock.

Economic structures and business cycles

The income differentials across countries within ASEAN also reflect the dissimilarities in the economic structures as well as business structures across countries. This could impede relative price movements and production outputs across the countries.  Singapore and Brunei is probably at a peak-contraction transition phases, while countries like Malaysia, Indonesia, Thailand, the Philippines, and Vietnam are in the expansion phase of the business cycle. Myanmar, Laos, Cambodia are undergoing the trough-expansion transition phases.

The business cycle is affected by the forces of supply and demand. A country that is more exposed to the international market will thus be more affected by the global market. Civil unrest in countries like Laos and Cambodia in recent years have dissuaded investors from investing in them thus creates a void in economic growth, even a decade after the Asian financial crisis in 1997.

Stabilised transfer systems

Due to the differences in business cycles and income differentials, it has proven to be difficult to have a centralised banking system to make transfers of resources across countries. Fiscal irresponsibility also undermine the monetary cooperation of the members within the currency union as witnessed in the EU where Germany has been reluctant in bailing out PIIGS. Much reformation and restructuring in the financial sectors and government policies is required before a common currency could be adopted.

Legal, cultural, and linguistic barriers

South East Asia is home to myriad cultural and linguistic differences. Unlike Singapore which promotes mutual respect and racial harmony, as well as having a common working language (English), the other ASEAN countries have been intolerant to other races and religions as can be seen in Indonesia and Malaysia to say the least. Political unrest also plagues countries like Laos, Cambodia, Myanmar, and Thailand.

It would be a high bar to reach for ASEAN nations to achieve cultural and religious tolerance. Most of the natives of the ASEAN countries also speak a different language across countries. A linguistic barrier would dampen the mobility of workers across countries. Hence, it would be hard for a Thai or Viet to find a job in an MNC in Singapore where the common language is English even if they may be highly skilled.

Yet, if the economic advantages of a regional monetary union are large, it is possible that countries may make political compromises so as to reap the economic benefits. Economic interests may persuade countries to set aside political differences and forge strategically beneficial political alliances. Economic and political integration in the region may span perhaps decades.

Though a common currency area seems improbable now, as the ASEAN nations become more developed, it may then be feasible to create a common currency area in ASEAN.

Related post:
Tea with Matthew Seah: Thoughts on having a regional common currency (Part 1).

Tea with Matthew Seah: Thoughts on having a regional common currency (Part 1).

The Euro is a common currency for members of the European Union. When it was implemented, there was much hype on the new currency. However, over the years, the member nations are in a state of inequality in income, welfare, employment, prices, etc.  Is it really feasible to have a common currency? Should ASEAN have a common currency like the Euro? 


With the integration of our stock exchanges, one might be thinking about whether a common currency is feasible in ASEAN, especially those in the upper echelon within each member country in ASEAN. (I think policy makers in Singapore are probably thinking of integrating, and they are using the European Union as a case study.)

I would go through the pros and the cons of having a common currency. Let’s start with the advantages:

A common currency creates ease of trade and investment among countries under the common currency area. This allows for the facilitation of trading of material goods as well as services, thereby promoting income growth within the region, by the reduction of transaction costs in cross-border trades, removal of exchange rates’ bid-ask spread, and the removal of the exchange rates’ volatility. 

A single currency also implies having a central bank (like that of the European Central Bank). Having a central bank with note-issuing powers provides the necessary liquidity to cater for inter-ASEAN payment using a single currency.

Under a floating exchange rate system, volatility in exchange rates tends to be disproportionately greater than the underlying economic fundamentals of the affected economy. We can see this in the day to day fluctuations in the exchange rates between member countries even though the economy of each country is pretty much the same (just like a business, the underlying fundamentals of a country takes a long time to change, perhaps even longer than individual companies). This volatility creates much uncertainty, which in turn, creates unexpected losses and diminishing returns on investment. As a result, a floating exchange rate system discourages cross-border trade and reduces overall economic growth, especially among small and medium sized enterprises. A common currency can therefore potentially negate the adverse effects of having a floating exchange rate system, where there is no worry of potential losses caused by exchange rate changes.

A common currency area allows factor mobility within the ASEAN region, factors such as labour and capital. As such, individual ASEAN nations can focus on developing their comparative advantage while workers immigrate through the region to countries where the workers feel can develop their niche in specialisation. Wages and price flexibility further improves labour mobility within the region.

With a single currency, a consumer can easily compare prices of a product between countries, creating efficiency in market pricing. Thus a single currency would create a more uniform price within ASEAN and enhances competition among business entities.

Skilled labor and experts in various fields such as pharmaceuticals, petrochemicals, finance etc. can better serve member states and provide their expertise to benefit the region as a whole.

Although there are benefits, there are many challenges and obstacles hampering the integration of a common currency area in ASEAN. It is also not feasible for ASEAN to have a common currency area for now. In order for a common currency area to be successful, the member states must have similar business cycles, economic development and structures, absence of legal, cultural, and linguistic barriers that would limit mobility, wage flexibility, and a stabilised transfer system.

In Part 2, Matthew considers the challenges to having an ASEAN common currency: Part 2.

Related post:
Mr. Lee Kuan Yew on the Eurozone crisis.

Buying property in Iskandar, Johor.

Singaporeans are pouring money into the Iskandar region in Johor, buying up real estate.

"Singaporeans make up 74 per cent of foreign home buyers in the Nusajaya township in Johor's Iskandar region, according to Malaysian property developer UEM Sunrise." 

Read story: here.







(Added in November 2016.)

Anecdotal evidence shows that most are buying for investment, hoping to rent out their properties or to sell for a profit later on. 

Few are entertaining the possibility of staying there.

I have spoken to friends in Malaysia and some of them stay in Johor. 

They told me that the optimism is just scary and they really cannot see how Johor would have so many renters to rent from enthusiastic (and, in their words, naïve) Singaporean landlords.





One told me that he now stays in one of these new townships and the neighbourhood he is staying in is not even 50% occupied. 

Yet, there are new neighbourhoods being constructed around his.

"This is not Kuala Lumpur. You Singaporeans are crazy."



I think people are optimistic about property in the Iskandar region because of the proximity to Singapore. 






So, if anyone is thinking of buying a property there for investment, it makes sense to buy one that is close to the proposed link to Singapore's MRT line. 

A train ride to Singapore's city centre then could take no more than 40 minutes assuming that there isn't a jam at the Customs checkpoints.

Am I interested? 

Well, there are too many optimists amongst Singaporean buyers now. 

I will wait until a time when they are mostly pessimists before looking. 



I could miss the boat but it is of no consequence to me. 

I rather miss it and still have my money than to join the crowd, buy in a mad flurry only to regret later on if I lose money.






(February 2014.)

2 February 2017

Related post:
Disastrous property investments!

Sex bloggers did it again!

As if it is not enough being labelled a sex blogger and having National University of Singapore terminated his scholarship last year, Alvin Tan has done it again with his girlfriend, Vivian Lee!

What? Another sex video gone viral? Nope, something worse!

This:

Last Thursday, Tan and Lee, both Malaysians, posted a photograph of themselves eating “bak kut teh” (herbal pork soup) with the words “Selamat Berbuka Puasa” - a Malay greeting for breaking fast - and the “halal” logo, prompting attacks by netizens for its insensitivity toward religious matters.

Are they dumb or what? Insensitive and selfish. They are a disgrace to their country, their schools, their families and their race!

The couple could be prosecuted for displaying offensive pictures and words under Section 233 of the Communications and Multimedia Act. If convicted, they could be fined up to RM50,000 or be given a one year jail sentence, or both.

Lock them up! They have to be taught a lesson in decency (in more ways than one too)!

They have issued an apology but will they change? Spare the cane and spoil the child, I say.

Source:
Dr Mahathir: Punish the sex bloggers!

Related post:
Sex blogger loses scholarship!

Not happy with government? Please emigrate!

I couldn't believe it when I read that the newly appointed Home Minister of Malaysia said that Malaysians who are unhappy with the country's political system should leave the country.

"If these people wish to adopt the list system or the single transferable vote used by countries with the republic form of government, then, they should migrate to these countries to practise their political beliefs," Datuk Seri Ahmad Zahid Hamidi.
Source: The Straits Times online, 16 May 2013.

I don't see how a statement like this is going to help make things better.

The Minister should realise that, like them or not, these unhappy Malaysians are still Malaysians! They have the right to express their desire for change even if the Minister might not agree with them. Simple, isn't it?

How could someone like this be a Minister? He is a Datuk too. Shame on him.

You might also be interested in this:
Take the good with the bad if we retire to Malaysia.

"We do not deserve to be disadvantaged this way." (FKA "Take the good with the bad if we retire to Malaysia.")

This is taken from a letter sent to The Forum Online in The Straits Times:

"My wife and I recently retired to Malaysia due to the property rules as well as the high cost of living in Singapore.

"We come back to Singapore to visit relatives and friends and attend medical appointments every two to three months.

"However, the LTA has informed me that as I am not an employee in Malaysia, my wife and I - a Singaporean and Singapore PR - are not allowed to drive our Malaysia-registered car into Singapore.

"I understand that this ruling is to close the loophole in the control of the vehicle population in Singapore, but I hope that the LTA can allow me to drive our Malaysia-registered car in based on the following..."

The writer went on to list 5 reasons, all of which I do not find convincing, ending the letter saying "We do not deserve to be disadvantaged this way."

I feel that since the writer understands that the rule exists for a good reason, then, he should not expect Singapore to make an exception for him.

I know people who moved to stay in Johor Bahru and rent out their HDB flats in Singapore for passive income. Not all are retired. In fact, a good number commute daily to Singapore for work.

I have always wondered why this is allowed since I believe that HDB flats are subsidised public housing and if these people are not staying in their flats, they should sell them to Singaporeans who need them more. It could possibly help to bring down the prices of resale flats too.

For Singaporeans who have chosen to make Johor Bahru their new home, I understand all their reasons for doing so with the lower cost of living in Malaysia usually at the top of the list.

However, understand that every choice made in life comes with consequences and we have to live with those consequences. 

We should not think that exceptions have to be made for us so that we can have our cake and eat it too, especially not when the exceptions will exact a cost on fellow Singaporeans.

Fraud: Credit cards.

When I was in Los Angeles with my dad once many years ago, he tried to buy some chocolates at the airport but his card was declined. The cashier told him that a message appeared on the machine that he was to call the card centre. My dad was puzzled since he promptly paid his credit card bills each month.

Anyway, he called the card centre using his ICC at a public phone booth. In case you are wondering what on earth is an ICC, it was an International Calling Card issued by Singtel for people who were travelling overseas in the past. I don't think ICC exists now.

The card centre lady asked him where he was and told him his credit card was used in a petrol station in Johor just two hours ago! Wow! My dad must have had taken something faster than the Concord to travel from the USA to Johor and then back in two hours.

There are risky places to use credit cards and we have to be very careful:

Flea MarketsFlea market merchants are often transient and can be difficult to locate if there is a problem with charges. It's especially true for vendors who don't have online credit card terminals and instead make carbon copies of your credit card.

That doesn't mean those vendors are necessarily fraudulent, but it makes the transaction less secure. The credit card company might have trouble doing a charge back. If you're going to the flea market, take cash. It's also easier to negotiate that way.

Small Shops/Cafes in Foreign Countries
These smaller merchants have a significantly higher percentage of credit card fraud as reported by large banks and credit card companies. Many of these transactions end up being written off by the banks because the merchants simply can't be located. There's just a higher chance of fraud when you get outside of the mainstream, so when in doubt, use cash.

For the full article, read:
The Riskiest Places to Use Your Credit Card

Cheap shopping and makan in Johor Bahru?

I read the terrible experience of the two Singaporean ladies who suffered at the hands of the Malaysian Immigration and Customs with much feeling. 

I have stopped going to JB for shopping and makan (Malay for "eating") for years now. The numerous reports of robbery, murder, burglary, car thefts etc raised a red flag. How these criminals seem to target Singaporeans really did it for me. 



However, past reports of how Singaporeans suffered at the hands of the Malaysian Immigration and Polis (that's how it is spelt in Malaysia, if I remember correctly) really angered me. 

Is it not enough that we have to worry about criminals? Do we have to worry about the law enforcers as well? Ahem, in Malaysia, yes!

My family used to go to JB regularly many years ago for recreation. I remember once when we were about to leave that my mom discovered her passport was not stamped with an exit stamp the last time we visited. It created a bit of an inconvenience that time when we were leaving the country. 

However, since she had an entry stamp, she was not fined or jailed for illegal entry and she could not be charged for overstaying as well since she just received another entry stamp for our then current trip. I remember she still had to pay a "fine" while we waited for her and my dad in the car.

From then on, we made it a point to check our passports carefully each time we went through Malaysian customs. Good thing we did too because on another trip later on, my dad's passport was not stamped upon entry. We stopped the car by the roadside and my dad walked back to the booth to get his entry stamp. It was a long walk and we waited for him in the car for more than 30 minutes. Thank goodness, no complications because his immigration "white card" (Malaysian immigration form) was all in order.

It has been many years since I was last in JB. I do not see why I should go to JB for shopping and makan just to save some $10 or so per trip. Actually, the imported goods are cheaper in Singapore. 

Unless we have a penchant for buying large quantities of Buatan Malaysia (Made in Malaysia) products, we can't save much money. The potential risks and the angst are just not worth the small savings.

Anyway, I get the feeling that Singaporeans are not welcomed in JB as they look at us as the reason for higher cost of living there. Why should we be so thick skinned to go to a place which does not welcome us? 

Give JB a miss, I say.

Want a good and inexpensive meal? Go to one of our famed hawker centres! I have blogged about quite a few too. 

Happy and safe makan! Burp!

Read articles here:
S’pore duo to file complaint against M’sia Immigration




(Added in November 2016)

Tea with AK71: Another budget meal!

My friends are constantly amazed by my budget meals and it happened again today. I shared in LP's cbox that I was going to have an 80c lunch. More precisely, it was going to be a packet of nasi lemak with chilli, ikan bilis and ikan kuning wrapped in banana leaf. What some said:

jewel: wow still got 80c nasi lemak in sg

 Piggybank: all that only 0.8 ?

Guess what. I was mistaken. It was 70c and not 80c! My lunch:

Sometimes, I also like a cup of tea after lunch and here is a picture of my cup of tea today:

What is that twig in the water? That is Gan Chao (liquorice), a chinese herb. This is good for the heart, spleen, lung and stomach. It detoxifies and removes heatiness. I would throw a piece into a mug of warm water and let it steep. Here is a picture of a packet (almost depleted) which I bought from my favourite Chinese medicine hall a few months ago:

And the price? A picture is worth more than a thousand words:

Cheap? You bet. Gan Chao tea is good for our health and gentle on our wallets! In case you are wondering if the health benefits from a cup of Gan Chao tea would cancel the unhealthy effects from a packet of nasi lemak, I don't know but I'm happy. Haha... ;)

Related posts:
Tea with AK71: 60c soya beancurd et al!
Tea with AK71: $1.20 Ice Kachang.
Tea with AK71: A simple meal.

Bribing a Malaysian cop (UPDATED JULY 2018).

I just came back from a day trip to Johor recently and this was one of the things we talked about.

Singaporeans are a fortunate bunch but being in Singapore most of the time also makes us sheltered and somewhat naive.

Just look at the number of Singaporeans who got scammed in the years past, for example.





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I just read that "A Singaporean man has been sentenced to a day’s jail and fined S$4,300 (RM$10,000) for attempting to bribe a Malaysian traffic policeman with S$21 (RM$50)."

I remember how almost 10 years ago, I exceeded the speed limit on the North South Highway by some 20km/hr and was caught in a speed trap.  





The police officer smiled at me and told me I was speeding.  

He asked for my driver's license and I gave it to him.  

He did not proceed to issue me with a speeding ticket but continued smiling at me.  

I looked at him and asked him how much was the fine.  





He looked puzzled and looked at a chart and told me RM200 (thereabouts), if my memory serves me right.  

I just said "OK, please give me the ticket".  

His smile went away as he issued a speeding ticket.





My friend who was in the car with me gave me a scolding after I drove off.  

"Couldn't you see he was waiting for you to bribe him?" 

and 

"You could have settled it with just RM50!"  





I simply replied that I always do the right thing or try to anyway.  

I got another scolding when I spent a couple of hours the next day trying to locate a police station in Klang to pay the fine.  "See how much time we have wasted?"  

It didn't help that the policeman on duty was dozing and the receipt was manually issued which took an inordinate amount to write.





A couple of years later, my dad drove the same car into Malaysia and was stopped by a policeman who claimed that the fine was never paid!  

My dad called me on the phone then and I told him that I laminated the receipt and he would find it in the glove compartment. 

I had taken precaution just in case something like that happened. 

It's Malaysia. 

Malaysia boleh!

(You have to watch the video by ABC NEWS.)











This Singaporean guy who was trying to bribe the traffic policeman, if you asked me, was just "suay" (bad luck) since what he tried to do is something which many (Malaysians and Singaporeans) have always done and are probably still doing.  

The Chinese have a saying: 

"Kill the chicken to show the monkeys".  

He happened to be the chicken in this case.





Read the full story here.