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In a recent study by Nielsen Malaysia on Malaysia’s shifting payment landscape, only 8% of Malaysians have adopted the use of e-wallets. Why? Withdrawing cash from bank ATM not risky? Using credit card not risky? Online banking transactions not risky?


One of the major reasons highlighted as a barrier to cashless adoption is that 46% of Malaysians are concerned about security measures and fraud risks related to digital payments.

What is Money-Back Guarantee?


In order to address this security and fraud risks and to boost consumers confidence, Touch'nGo (TNG) recently rolled out its "money-back guarantee" policy, dubbed as the first-ever safety and security policy for mobile payments in Malaysia



The "Money-back Guarantee" promises full compensation within 5 days if your TNG eWallet is being charged with unauthorised purchases or reload. Their enhanced security features protect you from any risk of losing your eWallet balances through unauthorised transactions:

  • Artificial Intelligence & Machine Learning - Track and analyse data to detect and prevent unauthorised transactions
  • Human Intervention - Dedicated risk team for further monitoring and strengthening the back-end security system



How to define "unauthorised transactions" ???


An "unauthorised transaction" occurs when the stored value (wholly or partially) is sent from your TNG eWallet account without you authorising it and due to no fault of your own.


Please note that if, however, you authorise/allow someone to access your TNG eWallet account (for instance, provide them with your login information or 6-digit pin) and they conduct transactions without your knowledge or permission, TNG will not be responsible for all the consequences arising from this manner of unauthorised use and such transactions will not be covered under this Moneyback Guarantee Policy.




Is this Feature comes Automatically?
No. If you want to be covered under ‘Money-back Guarantee’ Policy, then you have to:

  • Completed your TNG eWallet account upgrade by completing a full verification process and validated by TNG team
  • The source of funds for the unauthorised transaction must originate from the your own TNG eWallet account, and;
  • You must notify TNG in the manner prescribed herein within 60 days from the date of the unauthorised transaction.


Question: The unauthorised transaction happened on 18 June 2019, I filed my claim on 25 June 2019, but I only verified my account on 1 July 2019. Will I be covered?

Answer:  Yes, the user is covered since the eWallet account has been verified and the claim submission is done within 60 days of the unauthorised transaction date, 18 June 2019. However, the user shall be required to resubmit the claim after the user has verified his or her account.

Click here to Download and Read the full Terms & Conditions.


Related articles that you might be interested to read:


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Dubbed as one of the worst major global markets by Bloomberg, the benchmark FBM KLCI Index has year-to-date (YTD) slipped 1.10% (1H19) to 1,672.13 level, while the rest of global markets recovered and ventured deep into positive territory. 




Factors that topped the list for the less upbeat mood were:
  • trade war and global recession fear, which resulted in heightened foreign exit;
  • steep correction in crude oil price and ringgit weakness;
  • unexciting valuation and corporate earnings growth versus comparable peers; and
  • still muddy domestic politics as succession issue remain a key sore point along with many unwanted incidents consistently rocking the power base and the cohesiveness of the ruling coalition.

Outlook of 2H19 will be hinges on these few Hot Topics:
  • Trade war between US and China (still...)
  • Budget 2020 in October, in anticipation of higher expectation on ruling government to be business-friendly.
  • Brexit. Oh no again? Although have cooled down, this will boil over again as the 31st October deadline approaches.
  • Possible removal of Malaysia from the World Government Bond Index (WGBI) by FTSE Russell in September (which is unlikely)


In 2H2019, dovish central banks, China’s policy stimulus, resilient consumer demand and technological innovation are set to extend the global economic cycle further and support riskier assets, says HSBC.




According to Affin Hwang Capital research, recent earnings results show that companies in the rubber glove sector are not at significant risk of lower margins from rising production costs. The research house remain positive on the outlook for glove sector. 



Meanwhile, the consumer sector in Asia will stay resilient amid global uncertainty in the second half of the year (2H2019). The sector has been benefiting from rising wages and government incentives in the US and rising private wealth in Asia, says HSBC Private Banking.





Conclusion:
Lack of Strong enough Catalysts for Market Rerating to Higher Level.


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If you are planning to purchase an Investment-Linked Plan (ILP) insurance policy, then you should take note of the new regulations by Bank Negara that came into effect on 1 July 2019.



In January 2019, Bank Negara released a policy document that set several new requirements that investment-linked insurance providers must adhere to from 1 July 2019 onwards. Why? These requirements were designed with the primary objective of protecting the interests of policy holders.

Continue to read here...


The salient requirements are as follows:

  • Implementation of standards on *Minimum Allocation Rates (MAR) to protect the account values of IL policy/certificate owners;

  • Minimum standards on sustainability tests and communication to policy/certificate owners to improve long term persistency of IL policies/certificates and consumer awareness; and


  • Strengthened disclosure standards on product illustration to facilitate more informed decision-making by consumers.



Allocation changes for one of the ILP plans from an insurer.




What does “Minimum Allocation Rate (MAR)”  means?
It refers to the minimum proportion of premiums payable by policy owner/takaful contributions made by takaful participant that is allocated in the unit fund(s) of choice before the deduction of any charges.





What should investment-linked policy owners/takaful participants do?

For existing owners of investment-linked policies/certificates and consumers who have purchased an investment policy/certificate before 1 July 2019, you should:

  • Understand the term of your contract and how long your coverage is expected to last, based on the current level of premium/contribution.
  • Contact your insurer/takaful operator or agents (insurance/takaful/bancassurance) for further clarification, if necessary.
  • Receive a letter from your insurer/takaful operator providing information on sustainability of coverage from 1 July 2019. Please discuss with your insurer, takaful operator or agent (insurance/takaful/bancassurance) on how the information on sustainability of coverage affects the terms and conditions of your contract, and meets your insurance/takaful protection needs.
  • Continuously review your protection needs and financial situation, and be aware of any changes to the tenure your coverage is expected to last.
  • Understand the options available to manage the investment-linked policies/certificate to meet your needs and discuss them with your insurers, takaful operators or agents (insurance/takaful/bancassurance) where necessary.
  • Take appropriate action, if necessary.




Beginning 1 July 2019, for consumers who intend to buy a new investment-linked policy/certificate, you should:

  • Understand that the premiums/contributions quoted at point of sale are expected to be sufficient to fund coverage until the end of the contractual term.
  • Review carefully the terms and conditions to ensure that they meet your insurance/takaful protection needs.
  • Continuously review your protection needs and financial situation and be aware of any changes to the tenure your coverage is expected to last.
  • Understand the options available to manage the investment-linked policies/certificate to meet your needs and discuss them with your insurers, takaful operators or agents (insurance/takaful/bancassurance) where necessary.
  • Take appropriate action, if necessary.





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The e-Commerce Consumers Survey 2018 (ECS 2018) is the first purpose built survey conducted by Malaysian Communications and Multimedia Commission (MCMC) to understand characteristics and behaviours of e-Commerce consumers in Malaysia.


In addition, the survey also covers challenges faced by consumers to adopt e-Commerce.

The survey focused on selected key indicators including the following:
i. e-Commerce experiences;
ii. purchasing;
iii. product delivery;
iv. product return;
v. security and privacy; and
vi. demographics and socio-economics background of consumers and non-consumers.

In the full 49 pages of survey report, let us zoom into these key highlights











Various types of payment method such as, online banking, credit card, cash on delivery, etc. give more flexible options for shoppers. Additionally, the advent of third party online payment such as PayPal, Alipay, MOLPay, iPay88, etc. have provided shoppers with alternative online payment.







 

The survey found that majority of online shoppers in Malaysia (93.6%) have purchased goods and services from local seller, while more than half (52.2%) shopped cross-border.

When further asked about location of cross-border e-Commerce market, below figure is the outcome. Unsurprisingly, China tops the chart.














Conclusion:


Growing up in the advent of Internet, young generation below 30’s is identified as the major adopter and engine of growth for e-Commerce. Managing consumer trust and privacy in every part of e-Commerce value chain is very important for sustainability.

Apart from strengthening cybersecurity and risk policies to manage security and privacy risks perception, smart delivery options and customer-centric return policies will also instil their confidence.



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As most of us already knew, Bank Negara Malaysia (BNM) decided to reduce the Overnight Policy Rate (OPR) to 3% at its last meeting on 7 May 2019. This was the first time of OPR cut since July 2016.
Historical Movement of Malaysia's benchmark interest rate (Overnight Policy Rate)

Consequently, the ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25% and 2.75% respectively. This in turns will affect all the borrowing rates in Malaysia.

What's the lending rates from various financial institutions following the cut?

Here you go...






Note:
* Indicative effective lending rate refers to the indicative annual effective lending rate for a standard 30-year housing loan/home financing product with financing amount of RM350k and has no lock-in period.

As at 24 May 2019


Bank Negara Malaysia


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On Monday, global stock market indices provider FTSE Russell placed Malaysia's market accessibility level in its World Government Bond Index under a review considering a downgrade from the current level of 2 (highest level of accessibility) to 1, due to concerns about market liquidity, at the end of the review period in September.

The downgrade may make the Malaysian local government ineligible for the index that helps with exposure to wider global investors. (Source: TheEdge Market news)




Double Drops !!!

Following the release of the news, Malaysian Ringgit and FBM KLCI tumbles the next day due to heavy foreign selling. USD/MYR hitting a low of 4.14 at the time of writing and seems that it will continue to falls further, if Bank Negara Malaysia decided to lower down the benchmark interest rate (OPR) in coming months.

While investors scramble to react from the news, what is this WGBI actually?

Let us have some understanding and let's get the class started below...

The World Government Bond Index (WGBI) measures the performance of fixed-rate, local currency, investment-grade sovereign bonds. The WGBI is a widely used benchmark that currently comprises sovereign debt from over 20 countries, denominated in a variety of currencies, and has more than 30 years of history available.

Malaysia Government Bond 10Y

The WGBI is a broad benchmark providing exposure to the global sovereign fixed income market. Fixed rate coupon bond/securities with at least one year maturity. (Source: The Yield Book by FTSE Rusell)


Which Countries were inside the List now ?

  1. Canada
  2. Mexico
  3. United States
  4. Austria
  5. Belgium
  6. Finland
  7. France
  8. Germany
  9. Ireland
  10. Italy
  11. Netherlands
  12. Spain
  13. Denmark
  14. Norway
  15. Poland
  16. Sweden
  17. Switzerland
  18. United Kingdom
  19. South Africa
  20. Australia
  21. Japan
  22. Malaysia
  23. Singapore





What is the Market Size to enter / exit the index?
Entry: The outstanding amount of a market's eligible issues must total at least USD 50 billion, EUR 40 billion and JPY 5 trillion for the market to be considered eligible for inclusion.

Exit: When the outstanding amount of a market's eligible issues falls below half of all the entry-level market size criteria, namely USD 25 billion, EUR 20 billion and JPY 2.5 trillion, for three consecutive months, the market will be removed from the next month's profile and added to the WGBI Additional Markets Indices.


What is the Minimum Credit Quality needed?
Entry: A- by S&P and A3 by Moody's, for all new markets.
Exit: Below BBB- by S&P and Baa3 by Moody's.

(Note: Malaysia's current credit rating was A- by S&P, A3 by Moody's, A- by Fitch)


What is the Barriers-to-Entry?

Entry: A market being considered for inclusion should actively encourage foreign investor participation and show a commitment to its own policies.



Exit: Circumstances can change over time and a country may find that revising its policies makes sense for its national welfare. However, it is possible that new policies, including but not limited to ownership restrictions and capital controls, can have the effect of limiting investors' ability to replicate the returns of that country's portion of the index. In that case, it may be necessary to remove that country from the WGBI.


If barriers to entry are identified, an announcement will be made that the particular market has become ineligible, stating the reasons. That market will then be removed from the following month's profile and moved to the WGBI Additional Markets Indices.



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The following are the Base Rates, BLR and Indicative Effective Lending Rates of Financial Institutions as of 05 April 2019.

Source: Bank Negara Malaysia







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Too lazy to read the full annual report?

No worry... Let us summarise for you with these 5 key highlights :)



What's the forecast for 2019 and why?



How about the Inflation Rate and what factors affecting it in 2019?


Would our Current Account balance still able to record Surplus?



Are Malaysians workers paid fairly?
(Assessment based on productivity and equity)


Our External Debt is within control?


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