There hasn’t been a high-profile IPO for a while already especially in the distressed economy. That is until Maxis announced their coming initial public offering (IPO) of 2.25 billion shares (30% of their total equity) at a price of RM5.20 per share.

Now, investors all over are waiting with bated breath for the magical date of 19 November 2009 when Malaysia’s top telecommunications company lists on the Bursa Malaysia. Will it be largely oversubscribed? It certainly looks to be heading in that direction. At approximately RM10.8 billion to be raised, it is the biggest listing in South East Asia in decades and the markets are certainly hungry for fresh and promising listings. Read on to see if you should invest in Maxis shares.

Lucky Maxis post-paid subscribers are given blue forms to complete which I have been told have at least an 80% chance of being lucky. Otherwise, mere mortals will need to consider picking up pink forms or buying it directly off the market once the stock lists although you might want to be prepared for quite a large premium especially on the first day of listing.

Should You Subscribe To The Maxis IPO?

Analysts are encouraging investors to consider subscribing, based on Maxis’ solid fundamental execution, superior margin and robust dividend growth. Interestingly though, OSK has placed the stock’s fair value has been placed between RM5.30 to RM5.80, derived from a projected 2010 price earnings multiple of 14.8 to 16.2 times. Other analysts are less optimistic believing that the IPO price is too high. (source)

Based on the analysis, the IPO price at RM5.20 does not offer much upside potential although a robust dividend payout is still likely over time. All in all, it still appears to be a fairly stable stock and one that promises potential dividend growth. It does not come at a cheap price but then again, good stocks rarely come cheap!

Good luck and do ensure you speak to your remisier before you invest.

Yes its official. Paypal now allows those in Malaysia to withdraw their USD funds into their Malaysian Bank Accounts! Happy day!

There are some guidelines here for linking your Paypal account to your Malaysia bank account. Basically, most banks in Malaysia are accepted and Paypal has even provided the bank’s MEPS code so you don’t have to go hunting for it

If you are wondering, yes there is a fee of RM3 if you withdraw amounts below RM400 but for RM400 and above withdrawal is free.

Also, do ensure that your name is correct and matches your bank account name and account number because there will be charges if the bank refuses to accept your payment – Paypal’s charges will be RM15 and who knows how much the banks will charge!

The upshot of this too is that you might now be able to fund your online or ebay purchases with your bank account instead of having to use a credit or debit card. Since there is now a RM50 service tax on credit cards, some people might be thinking of cutting up most of their cards.

I’ve done a test withdrawal with a small amount – I prefer to incur a small charge to see if it works well, rather than have RM400 floating in cyberspace somewhere! Will update on how it goes.

One of the most glaring things out of Malaysia’s Budget 2010 was the RM50 charge on each credit card you hold which will be imposed by the Government in an attempt to police the citizen’s spendings habits and ensuring they do not hold more cards than you can afford.

Has it been a budget of goodies? Honestly, even if it was, none of the goodies will be remembered by the man on the street whose pocket is terribly hard hit by the charge imposed on credit card. In this day and age where the entire world is moving towards a cashless society and where Malaysians are feeling more unsafe everyday, the credit card has become a necessity rather than luxury.

So is it fair to impose charges on credit cards? Well, is it fair to impose charges on basic necessities such as food, water and security?

Instead, the Prime Minister said they should look at the overall benefits offered by the Govern-ment in the Budget.

“They are getting the RM1,000 tax relief and those paying tax at 27% will now pay 26%.

“So, they get two (relief measures) and only have to pay RM50 (per credit card). Don’t tell me they cannot pay RM50?” he said after a meeting at the 15th Asean Summit here yesterday. (source)

Our esteemed PM obviously has forgotten that majority of the rakyat will not fall within the tax bracket of 27% to enjoy the tax reduction of a grand 1%. It can be argued that most will enjoy the additional RM1,000 tax relief but does this justify a RM50 charge on our credit cards? Its like giving a baby candy only to take back part of it simply because the baby isn’t mature enough to eat the candy in small bites!

RM50 a year may not seem like a lot to some but it is to me and hence I’ll be cutting up most of my credit cards that have come with a “Free For Life” tagline. Perhaps our clever economic thinktanks might want to think of how this will impact the banking industry and flow of money when everyone starts cutting up their cards.

Its food for thought indeed. Will you be cutting yours? Or to quote an awfully terribly mangled advertisement on P1 Wimax: You Got Cut Or Not?!

1. An allocation of RM191.5 billion, consisting of RM138.3 billion or 72.2 per cent (operating expenditure) and RM53.2 billion or 27.8 per cent (development expenditure).

2. Special payment of RM500 in December 2009 to civil servants from Grade 41 to Grade 54 or its equivalent as well as those on mandatory retirement.

3. Enhancement of tax incentives for healthcare service providers who offer services to foreign health tourists. Income tax exemption of 50 per cent on the value of increased exports will be increased to 100 per cent.

4. Individual taxpayers will be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012.

5. Civil servants are eligible to apply for computer loans once in every three years as compared to once in every five years now.

6. Subsidies, incentives and assistance amounting to almost RM2 billion to safeguard the interest of farmers and fishermen.

7. An allocation of RM9 billion to finance infrastructure projects, including construction of roads and bridges, water supply, sewerage services, rail facilities, ports and sea services as well as airport projects.

8. An additional allocation of RM20 million for small-scale Malaysian-Indian entrepreneurs under the Tabung Kumpulan Usaha Niaga (Tekun), on top of the existing RM15-million allocation.

9. Establishing a RM200-million Creative Industry Fund to finance activities, such as film and drama productions, music, animation, advertisements and local content development. Establishing “Tabung Kebajikan Penggiat Seni” to ensure the welfare of artistes.

10. An allocation of RM20 million for 20 schools to be identified as High Performance Schools (SBT) in 2010.

11. Awarding national scholarships to 30 “creme de la creme” students strictly based on merit. These scholarship recipients will further their education in world-renowned universities.

12. Converting the National Higher Education Fund Corporation (PTPTN) loans to scholarships for students who graduate with first class honours degrees or equivalent beginning 2010.

13. Providing a 50 per cent discount on fares for long-distance services of Keretapi Tanah Melayu Berhad (KTMB) to students aged 13 and above beginning Jan 1, 2010.

14. Offering a netbook package, including free broadband service, to 100,000 local university students for a start for RM50 per month for two years, effective Jan 1, 2010.

15. An allocation of RM100 million for the PERMATA Programme to implement various programmes which emphasise early childcare and education in an integrated and organised manner.

16. Micro insurance and Takaful coverage for small-scale businessmen which will benefit from coverage ranging from RM10,000 to RM20,000 with premium as low as RM20 per month.

17. Establishment of 14 Special Corruption Sessions Courts and four Special Corruption Appeal High Courts.

18. Imposing RM50 service tax on each principal credit card and charge card, including those issued free of charge, and a service tax of RM25 a year on each supplementary card effective Jan 1, 2010.

19. All ministries and government departments are required to provide day care and education centres for children. For this, an allocation of RNM200,000 will be made available for every ministry and government department to establish day care centres.

20. Reduction of the maximum individual income tax rate from 27 percent to 26 percent, effective from the year of assessment 2010.

21. Personal relief for individual tax payers to increase from RM8,000 to RM9,000 effective from the year of assessment 2010. This means that each individual tax payer will enjoy an increase of RM1,000 in disposable income.

22. About 50,000 hardcore poor households registered with eKasih and 4,000 Orang Asli households will be given assistance to achieve the target of zero hardcore poverty in 2010. An allocation of RM41 million will be provided to improve the income and quality of life of the Orang Asli community.

23. An allocation of RM48 million to implement urban poverty eradication programmes, including welfare assistance and house rental payments. The Ministry of Federal Territories shall now be known as the Ministry of Federal Territories and Urban Wellbeing.

24. The National Housing Department to provide 74,000 low-cost houses to be rented in 2010.

25. EPF to launch a scheme that enables contributors to utilise current and future savings in Account 2 to enable them to obtain higher financing to buy higher value or additional houses.

26. An allocation of RM224 million to the disabled for the implementation of the Rehabilitation In The Community Programme and an allocation of RM174 million for senior citizens, including assistance as well as the construction and upgrading of two Rumah Seri Kenangan.

27. Increasing the allowance rate from RM50 to RM150 a month for every disabled child enrolled in NGO-organised special schools effective Jan 1, 2010.

28. Establishment of 1Malaysia Retirement Scheme for the self-employed, such as taxi drivers, hawkers, farmers and fishermen, to be administered by the EPF.

29. Effective immediately, employees’ EPF contribution will revert to 11 per cent on a voluntary basis.

30. Construction of 510 km of rural roads and 316 km of village roads with an allocation of RM857 million, including roads to be constructed in Kapit, Lawas and Simunjan in Sarawak as well as Kinabatangan, Kota Belud and Keningau in Sabah.

Ooh, isn’t it exciting and profitable times to be in?

First, the Terengganu state government offers couples on the verge of divorce an all-expenses paid trip worth RM1,500 for 3 days and 2 nights together with marriage counselling! (source)

Then, now, the UMNO Youth has proposed for the Government to give the following goodies (source):

• A one-off gift of RM200 for every firstborn as an initial deposit to the National Education Savings Scheme Fund.
• A special discount for the purchase of national cars to first-time parents who have yet to own a car.
• Housing loans with the lowest interest rates for the first few years upon marriage so that newlyweds could afford their own home.
• Vouchers to parents with infants for purchases such as milk and diapers.

It is interesting and certainly a way to garner further support from the people. While it is a far cry from the thousands offered by the Singapore Government for every child born, it is nevertheless a good start in the right direction if it is approved.

However, whether this is a hint of good things to come in the coming Budget or whether it is a political move to regain flagging support, remains to be seen.

Passengers going to the LCCT now have more options instead of the 1 hour bus ride! KLIA Express has recently launched a train service to LCCT which will stop at Salak Tinggi station where dedicated buses will be waiting to take passengers to the LCCT terminal.

The train service will depart from KL Sentral where a one way ticket to Salak Tinggi costs RM12.50 and a return is RM22 for adults and RM6 and RM11, respectively, for children.

However, for a limited time only up to 30 September, KLIA Express is giving away 5,000 free tickets from KL Sentral to Salak Tinggi station for travel between 1 October 2009 to 19 November 2009. Simply register on their website here for your free ticket!

I tried to register for one, unfortunately, was told that tickets were not available for my selected date. Hopefully you have better luck!

The recent demands by the Indonesian government to increase maid’s salaries to RM800 a month hit a raw nerve in most parties especially those who are heavily dependent on foreign maids. It is a big jump, almost double, from what the maids are currently being paid and would certainly put a hefty dent in most families’ budgets. Read on below for the concerns raised and indirect impact this would have on the average man on the street.

Mothers To Quit Working?

Most city women work and unfortunately, there is a new generation of children who are being brought up by these foreign maids instead of their own mothers. At the current rates of RM500 or less, it still makes economic sense for the mother to work. However, at rates of RM800 a month coupled with agency fees, some parties are arguing that it might be more economical for mothers not to work. From a non-financial perspective, it is better for the children, however from a financial view, household incomes would likely drop and so would the overall workforce.

Higher Costs of Living?

Currently, lots of hawkers and restaurants employ these Indonesian maids as they are cheap, speak Malay and many have even picked up Mandarin and Cantonese! In fact, order from your favourite stall in a hawker centre or coffee shop and chances are, that char kuey teow you ordered was fried to perfection by an Indonesian worker! At RM800 per month, most stall owners and coffee shops would likely pass on the wage increase back to the customers by increasing the costs of their food and drinks. Ultimately, the pockets of the man on the street are hit once again!

Minimum Wage For Malaysians?

To date, there is no minimum wage for Malaysians despite many parties concerted efforts to fight for one. Some workers in Malaysia are paid only RM350 to RM400 a month which is way below what the minimum survival rate is at RM750 to RM800 per month. These are workers who need to pay for food, lodging and transportation compared to a maid who gets all that for free from her employer. The maid’s RM800 a month is almost net! If there is a move to increase salaries, shouldn’t the local workforce be considered first before bowing to the demands from Indonesia?

Ultimately, the reason why Indonesia can make these demands is because the country is dependent on their maids. Instead of relying on maids, all parties and employers should look into how they can assist their employees by providing more reliable child care and nurseries. After all, these are tax-deductible and most employees would certainly prefer leaving their children in their company’s child care as opposed to a maid. It will be interesting to watch how this wage demand unfolds and how the man on the street will ultimately be affected.

How many times have you groaned at long transits between your flights and wish there was somewhere you could go while waiting without paying an arm and a leg?

Well, thanks to the people behind Yo! Sushi, there is now an interesting and affordable option to wait out long transits in the form of Yotel. Read on about Yotel’s unique accommodation concept below!

What is Yotel?

Yotel is an innovative accommodation concept modelled after luxury airline travel and Japanese capsule hotels to provide affordable and comfortable accommodation for travellers in transit or brief overnight airport stays. Currently, Yotel is available at London Heathrow Airport Terminal 4, London Gatwick Airport South Terminal and Amsterdam Schiphol airports.

What Are Yotel Cabins Like?

Yotel offers a variety of cabins for different prices – premium cabins, standard cabins, twin cabins and specially designed cabins for those requiring wheelchair access.

Each standard little capsule is comfortably decorated with comfortable luxury bedding, hot water showers, working desk, free internet access, soft cosy lighting and a flat screen TV. Premium cabins come equipped like first class seats where beds recline with a touch of a button, overhead rain shower and all little touches you can expect to find in a 4-star hotel room. Yotel cabins provide a nice little haven of sanctuary and peace in a busy airport!

How Much Do Yotel Cabins Cost?

Yotel cabins can be booked online or in their check-in kiosks available at selected airports. Bookings are available for a minimum of 4 hours and start at booking from as little as £40 for a premium or Twin cabin and £25 for a standard cabin at YOTEL Gatwick & YOTEL Heathrow. Prices at YOTEL Schiphol are also based on a minimum price for a four hour booking from as little as €60 for a premium or Twin cabin and €35 for a standard cabin. The prices per hour thereafter are from as little as £6.50 at YOTEL Gatwick & YOTEL Heathrow and from €8 at YOTEL Schiphol per hour in a standard cabin.

So if you are looking for an affordable and good way to spend your transit hours without booking an overpriced and miserable day room, try Yotel!

Today is the day that RON 95 petrol is made available to all motorists at a cheaper rate compared to RON 97. RON 97 previously used to retail at RM1.80 before RON95 was introduced.

I recall that when it was announced, the RON 95 was supposed to retail at RM1.75 per litre while the RON 97 price was going to be pushed up to RM2.00 per litre. However, when it was launched today, the price of RON95 has already been hiked up by a further 5 sen to now retail at RM1.80.

The newly introduced RON95 fuel is now selling at RM1.80 – five sen higher than its previous price. (source)

RON 97 is now considered premium fuel and will be sold at RM2.05 per litre from the previously agreed RM2.00 per litre. This price used to be for special fuel with additives such as V-Power which really does give your car that extra boost of power but now we’re paying the same for RON 95 instead which has no added chemicals to clean your engine and make your car faster.

So what are Malaysians ending up with now? We’re paying the same price we used to pay for petrol but for a lower grade petrol. Savings? I’m not sure…what do you think?

It was very sad to read in the newspapers today about an elderly Singaporean couple who got thrown out of their home after they gave it to their son as a wedding present. They now live under the staircase of a school!

The couple thought that they could live in the house with their son. He, however, decided to sell the property for RM960,000 to buy another condominium. Lim and his wife were then sent off to live with the daughter.

After a year, the daughter decided that they were no longer welcome and banned them from touching her children.

The couple could not enter the house after their daughter changed the locks to the house. (link)

Is this really what life in developed countries have become? It is a sad day when the money you can obtain from a sale of your property becomes more important than your own parents who gave you that home.