All posts by EZ Malaysia

Business & Markets, EZ 62 - Business & Markets

Saving or Investing Your Money in 2021

by Calvin Goon

Head of Wealth Management, Affin Bank Berhad

Which Strategy Works Best for You?

In early 2020, the Covid-19 pandemic came as a global shock that tore many peoples’ lives asunder and left all of us worried about our finances. During these uncertain times, many would perceive cash as king, holding on to as much of it as possible to play it safe.  

But is this really the best strategy?

In fact, one key indicator of the growing economic uncertainty this year is the fact that Bank Negara Malaysia has recently reduced the Overnight Policy Rate (OPR) by 125 basis points to a record low, a level that was last seen only during the 2008 global financial crisis. This move is one of several aggressive monetary measures, aimed at injecting liquidity back into the economy and thus putting it on the road to recovery. As a result, fixed deposit rates have been lowered at all Malaysian banks.

These developments, together with the undetermined duration of this prolonged pandemic and the adverse effects of a low interest rate environment, may make a person doubt their wealth strategy, which is why having an actual plan for your money has become more crucial than ever.  One way to solidify your wealth involves saving and investing interchangeably, but with key differences; it is important to note that these two instruments serve different purposes.

The Differences Between Saving and Investing:

In a truly solid Wealth Management plan, savings and investments should not be a question of one or the other, but rather a blend to complement each other. If you are a big fan of fixed deposits, you may need to consider diversifying your funds into investments as well in order to let the money work harder for you.  Ultimately, the best strategy involves understanding the characteristics, benefits, and risks of saving and investing.  Subsequently, you should choose the best ratio that combines both to suit your risk tolerance. 

Remember, don’t put everything into one basket!

Oftentimes, the “killer” of your wealth management strategy is not how you invest, but the misconception and myths most people have heard about investments. As such, it is always important for a person to fully understand the risk-reward trade offs before making any commitment to an investment. As risk appetite may vary for different people (clients), it is essential to categorise their individual risk profile into categories: Conservative, Balanced, Growth, and Aggressive to effectively plan a unique investment portfolio. For example, utilising equities as an investment to generate higher potential returns works for a client with an Aggressive risk profile, while utilising bond investments is more suited to a client with a Conservative risk profile. Without exception, recognising the type of risk a client has is of utmost importance for investment portfolio planning, as a client with a lower risk tolerance may not be able to stomach a strategy with higher risk.

If you’re ready to start or improve your wealth management strategy, consider AFFIN INVIKTATM; we are experts in recognising a client’s risk profile and tapping on available investment options to sculpt a portfolio that is best suited to your risk appetite and personal financial aims.

With us, it is always about you, your money and achieving your financial goals.

“Poor people see a dollar as a dollar to trade for something they want right now. Rich people see every dollar as a ‘seed’ that can be planted to earn a hundred more dollars… then replanted to earn thousand more dollars.”   (T. Harv Eker, Secrets of the Millionaire Mind)

EZ 62 - Business & Markets

Malaysian Property Market Outlook FromPandemic To Endemic

by Kenny Teoh

Managing Director, Hectarworld Group

Prior to the Covid-19 pandemic in 2020, issues such as property price affordability and oversupply are already affecting overall Malaysian property market. The Movement Control Order (MCO) since March 2020 and closed borders due to Covid-19 have inevitably caused uncertain economic outlook, weak business and consumer confidence. As a result, prospective buyers and investors are currently adopting a “wait and see” attitude. All these factors have further exaggerated the overall sluggish Property Market since 2020.

However, the Covid-19 pandemic is expected to be under control by this year-end, supported by our National Vaccination Programme that has been going full force since June 2021. This roll-out of the vaccination programme will surely help speed things up and hopefully allow the country and its people to get back to their new normal lives and restart most business activities that were negatively affected since the beginning of this pandemic. At the time of writing this article, our new Health Minister, Khairy Jamaluddin claimed that 80% of the Malaysian adult population are targeted to be fully vaccinated by end of October 2021 and the country can expect to move from the Covid-19 pandemic into an endemic by then; a phase where we start living with the virus. 

The overall property market is expected to rebound and experience pent-up demand when our lives and business activities are progressively restored by year end. Property market growth depends very much on the country economic growth rate. The historical trend is a testament to this relationship. 

As shown in Figure 1 above, the Asian financial crisis struck our country in 1997 and the market did badly in 1998 at – 9.4% GDP Growth, but recovered almost immediately in 1999 at 6% GDP Growth. Similarly, the Subprime mortgage crisis in 2008 saw the market plunged in 2009 and again positively recovered by 2010 onward. During early 2020, Covid-19 pandemic hit our country and the GDP Growth started to decline at about -0.4% to -0.5% at Q1 2021 and expected to stay sluggish throughout 2021 due to the implementation of Full Movement Control Order (FMCO). Positive recovery is expected in 2022 when new normal is restored and the health crisis is brought under control through herd immunity.  

Regardless, current property market is quite conducive for first time home buyers and property investors due to the low-interest rate regime and “hit rock bottom” property price (as shown in the Figure 1 above) even in some matured locations. In addition, the government’s allocations in the Budget 2021 to revive and ensure the continuity of mega infrastructure projects and the extension of Home Ownership Campaign (HOC 2020-2021) till Dec 2021 would be much needed boosters to the overall property market. 

We will be at the end of the tunnel soon, and we expect the economy to reopen when the country achieves its targetted herd immunity by end of October 2021. Property market will start to rebound by year end and begin its positive recovery in 2022 onwards. 

EZ 62 - People Culture

Western Digital Malaysia – Awarded Global Lighthouse Network by The World Economic Forum

The World Economic Forum (WEF) has recognised and awarded two Western Digital (WD) factories as the latest entrants to its Global Lighthouse Network (GLN). The smart factories are located in Malaysia and Thailand. Of the 90 total sites within WEF’s Lighthouse network, Western Digital factory in Penang is the first company to receive such esteemed recognition in Malaysia. CEO of WD David Goeckeler was delighted with the achievement and said that “It is an honour and a testament of our leadership efforts in 4IR with both technology innovation and workforce engagement.” “Western Digital, as a leading data infrastructure provider, is committed to enabling sustainable growth and transformation across our facilities around the world to deliver value to our customers, employees, and partners,” he added. 

At a press conference in Malaysia, Senior Vice President Global Flash Backend Operations – KL Bock, recalled that the solutions for lights-out were not available in the industry and the Malaysia team had to create their own blue-print from scratch to make it happen in order to provide cost efficient and effective enablers to support the growth taking shape in the global flash memory market. Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority (MIDA) congratulated WD for this milestone. He mentioned in his speech that Malaysia is on board towards the 4th Industrial Revolution and Digital Economy and he is confident that this is an exceptional example to the rest of the industries operating in the country. 

The Global Lighthouse Network is a project that was initiated by the World Economic Forum and McKinsey & Co since 2018 that recognises production sites and value chains that are world leaders in the adoption and integration of the cutting-edge technologies of the 4IR.

EZ 62 - Attitude & Style

A New Dior Exhibition Silk Room

The Dior Fall/ Winter 2021-2022 Haute Couture Show was presented against an exceptional backdrop installation designed by distinguished French artist, Eva Jospin, in the heart of the Rodin Museum in Paris. This backdrop of silk-embroidered panels perfectly harmonised with the threads theme that inspired Dior Creative Director, Maria Grazia Chiuri.

Based on the unique design by Jospin, this 40-meter-long immersive gallery is entirely hand-embroidered by the highly skilled artists of the Chanakya School of Craft and Chanakya workshop in Mumbai.

This phenomenal work of art is the outcome of an extensive process with a dialogue of multiple voices. It also references both Virginia Woolf’s feminist manifesto ‘A Room of One’s Own’ and the Indian-inspired Embroidery Room at the Palazzo Colonna in Rome.

Images courtesy of dior.com

EZ 62 - Beyond Boundaries

The Billionaires’ Space Race

Once upon a time the global space race was decided by the wealth of nations, but now billionaires have started taking over its future. The world’s wealthiest man, Jeff Bezos, has blasted into space in his own spaceship of his private space company, Blue Origin, on July 20, 2021. Bezos is the second billionaire in just over a week to travel to space, with Richard Branson being the first.

The rocket reached an astonishing height of around 107km, according to the Blue Origin telecast, which was higher by more than 17 kilometres of Branson’s Virgin Galactic ride, launched on July 11, 2021.

Although some have celebrated this occasion, many have vented their frustrations about these billionaires not investing in more important things that are currently happening in the world, for instance: climate change, environmental pollution, the pandemic, and many more.

Amongst the billionaire entrepreneurs leading this privately-funded race into space (also known as NewSpace) are South African-Canadian-American billionaire Elon Musk, American billionaire Jeff Bezos, and British billionaire Richard Branson.

EZ 62 - Business & Markets

COVID 19 IMPACT ON ISLAMIC FINANCE & BUSINESSES

by Aida Lim Abdullah, CEO of Penang Halal International Sdn Bhd, A State Govt Owned Entity

(CGMA, CIMA, CA, CFP, CSI, BA (Hons) Accounting & Finance (major in law))

Within approximately 45 years, the Global Modern Islamic finance has grown to an asset size of about USD2.5 trillion as reported in 2018, represented by almost 1,500 institutions worldwide (Islamic Finance Development Report 2019), whereas, “The Economic Outlook 2021” report published by the Ministry of Finance (MoF), Malaysia, shows that the Islamic banking industry in Malaysia has a total asset valued at RM1.03 billion and the total outstanding Islamic financing is about RM787.8 billion. 

Islamic Financing is not only for the Muslims.  It is a fast-moving industry, alongside the development of Syariah and Halal business activities.  The Islamic financial system operates with the principles of Shariah law where elements such as usury (riba), ambiguity (gharar) and speculation (maisir) are prohibited.  In this regard, Bank Negara Malaysia (BNM) and the Securities Commission (SC) have prescribed approved Shariah principles that apply to banking, insurance and capital market products in Malaysia; for example:- mudharabah (profit-sharing), murabahah (cost-plus sale) and tawarruq (tripartite sale). 

HOW IS THE ISLAMIC FINANCE AND BUSINESSES IMPACTED BY THE COVID-19’S PANDEMIC? 

The fallout from the Covid-19 pandemic and its effects on the world’s economy surpassed that of the global financial crisis in 2008.  The unprecedented Covid-19 crisis created severe uncertainty and struck a dire blow on global economy and international trade.  The negative economic and human impact with far-reaching implications on consumer, corporate, and global trade finance dynamics swept around the globe with lightning speed.

Nevertheless, based on the MoF report, it is expected that Malaysia’s Islamic finance industry is likely to expand further with the continuous promotion of Shariah-compliant products.  As the financial industry and business environment evolves, there are more Shariah-compliant products introduced and are available in the local market for Muslim and non-Muslim investors and businesses.

The Covid-19 pandemic has also created awareness on the use of financial technology offerings in the area of Islamic finance such as Shariah-compliant digital assets, crowdfunding and peer-to-peer financing platforms with a suite of e-Commerce set-ups that offers Halal goods, like those initiated by Penang Halal International with its partners namely, Penang E-Mall@Shopee, Foodpanda, Food4U programme and Penang E-Bazaar@PGMall.

Globally, we are seeing some countries downsizing or even shutting down certain industries and sectors; the economic hardships observed have amplified and spilled over to all.  Those who can work from home mostly have stable incomes, but non-permanent or daily workers are at risk of losing their earnings, particularly in the most affected industries such as property, construction, tourism and service industry.  

CONCLUSION:

One of the important wake-up calls in this pandemic is that many now realise the importance of embracing ethical and hygienic lifestyles, especially in the food chain process from manufacturing, processing to consumption.  As such, it would seem that the Islamic Finance will continue to develop and grow upwards alongside with Syariah, Halalan Toyyiban lifestyle, be it for religion or just an individual choice for ethical and hygienic lifestyle.  There appears to be a bright future for Islamic Finance and Businesses moving forward.

EZ62 - Breathing Space

Small Sharks Making Big Waves

Fossil records have shown that sharks have been around on earth 400 million years ago.  There are currently more than 1000 species of sharks that are known to mankind with many new species being discovered every year.  With movies like ‘Jaws’ and ‘The Meg’, these majestic top predators have been perceived to be killers and hunt humans from the ocean.  However other than shark attacks or the Great White, there are other shark species that do not carry the normal traits. 

The Walking Shark © Jonathan Bird

The Walking Shark 

The walking sharks discovered not too long ago in Northern Australian regions and as well as some areas in New Guinea do not really swim around but actually walk with their pectorals and fins to move across the ocean floor.  Rather small in size, usually a metre-long, they feed on small fish and invertebrates.  Scientists to date have found nine species of walking sharks and believe that sharks do have a remarkable evolutionary adaptation to environmental changes. 

The One-Eyed Shark

The One-Eyed Shark

While one thinks about cyclops as an ancient mythological creature from Greek legends, a one-eyed baby shark was found inside a pregnant dusky shark near Cerralvo Island in the Gulf of California. Another of such ‘cyclops’ shark was found in Maluku Province  by an Indonesian fisherman among the other normal babies inside the stomach of the mother shark.  Initially when cyclops shark first made news, many were sceptical and believed that it was a hoax.  However scientists have confirmed that the shark’s condition is a rare congenital disorder – known as cyclopia – resulting in the baby shark having just one single, large eye, right in the middle of its forehead.  Due to the fact that no adult cyclops shark has yet to be discovered, marine experts believe that the animal is unlikely to have survived in the wild due to its deformity. 

American Pocket Shark © Michael Doosey

Super Rare Shark with an adorable name

Found in 2010 and stored in a freezer by scientists for three years, researched for another few and only officially identified as a new species and finally given a name in 2019 is the ‘American Pocket Shark’.  Netted by a trawl survey in the Gulf Of Mexico, this is the only one of its species that is captured making this a super rare find in the history of fishery science. This tiny shark species measures only 14cm. 

EZ 62 - Mind Philosophy, Mind Philosophy

Australia’s Only Underwater Museum

Located on the Great Barrier Reef of Townsville North Queensland, the Museum of Underwater Art (MOUA) is a series of art installations created by world famous underwater sculptor and environmentalist – Jason deCaires Taylor. Taylor is one of the first contemporary artists in the world to exhibit his works in the underwater realm.

The artworks include Ocean Siren, a 15-foot-tall color-changing sculpture off the coast of Townsville © Jason deCaires Taylor
A mask rests serenely in the Mediterranean  © Jason deCaires Taylor
© Richard Woodgett

As Taylor’s only underwater art museum in the Southern Hemisphere, MOUA was created to educate and inspire the world about reef conservation, restoration and an aim to achieve positive environmental outcomes. Additionally, the museum aspires to share stories of the reef and the culture of its First Nations people. 

Visitors are able to snorkel or dive into this marvellous underwater world to enjoy these incredible artworks which over time will transform into their own eco-systems, as they have been built to allow for coral planting to support reef restoration. Tours are available to those wanting to journey to this remarkable art wonder on the ocean floor to visit, learn and support a cause to make a positive impact to the environment, the economy and the community.

Nest, located in Gili Meno, Indonesia, is heavily visited by snorkelers © Jason deCaires Taylor
Jason deCaires Taylor poses 26 feet below the surface with sculptures in his Silent Evolution installation at Mexico’s Museo Subacuático 
de Arte @ Courtesy Jason deCaires Taylor

EZ 62, Mind Philosophy

Remembering the People’s Princess – The Unveiling of Princess Diana’s Statue

Diana, Princess of Wales; former consort of Prince Charles; devoted mother to Prince William and Prince Harry; patroness of many charities and organisations, campaigner, activist and international icon of grace, elegance, and glamour.  Her untimely demise due to a car crash in 1997 greatly saddened the world. Princess Diana’s legacy has deeply impacted the royal family and British society, and she continues to be remembered dearly till this day.

© KensingtonRoyal

On 1st July 2021, Prince William and Prince Harry paid homage to their late mother, Princess Diana – a special day which would have been the Princess’ 60th birthday. The brothers unveiled Princess Diana’s statue at the Sunken Garden of Kensington Palace, also known to be her favourite spot. The stunning garden where the ceremony took place was designed by Pip Morrison. 

Created by Ian Rank-Broadley, the statue of the Princess is depicted in one of her trademark ensembles of a tuxedo-pleated button-up shirt, simple A-line skirt and a bold, wide belt. Renowned for her many eye-catching and show-stopping outfits, this statue perfectly encapsulates the late Princess’ style. 

The new memorial, slightly larger at 1.25 times life size, is commissioned by the brothers to commemorate the 20th anniversary of their mother’s passing. With outstretched arms, the Princess is seen standing alongside three children.  According to The Independent, Kensington Place released a statement expressing that the statue “reflects the warmth, elegance, and energy of Diana.” The three children are meant to represent the “universality and generational impact” of her humanitarian work. 

A joint statement from Princes William and Harry stated: “It has been 20 years since our mother’s death and the time is right to recognise her positive impact in the UK and around the world with a permanent statue. Our mother touched so many lives.  We hope the statue will help all those who visit Kensington Palace to reflect on her life and her legacy.”

EZ 62, Mind Philosophy

Chng Embraces the London Art Biennale 2021

Award-winning Asian artist Chng Huck Theng was selected to participate in the prestigious London Art Biennale 2021 – after his bronze sculpture titled ‘Embracing Oneself Again’ made it through the final selection.
 
Described as ‘The Capital for Contemporary Art’, the London Art Biennale was curated by the Gagliardi Gallery in conjunction with the International Confederation of Art Critics and the Chianciano Art Museum. The selection process is stringent, and only the finest artworks make the final show. Thousands of diverse and impressive applications were received from artists worldwide for this 5th edition. A total of 454 artworks were selected for the exhibition, which was held at the Chelsea Old Town Hall on King’s Road in the Royal Borough of Kensington and Chelsea in Inner London.
 
Chng, having previously represented Malaysia in the Venice Art Biennale and World Expo, was delighted to add another highlight to his long list of accomplishments in an art career that has spanned nearly three decades. The 49-year old shared – “It is a great feeling. To be recognised by such a prestigious art event, held in one of the world’s most art-inclined cities, is truly an honour. It definitely motivates me to continue my art journey.”
 
“But more importantly, this is also affirmation that Malaysian artists have the talent to shine on the world stage. Living in a culturally diverse society with rich heritage and history opens our minds to many different things, which add value, meaning and quality to the works we produce.”
 
Chng’s ‘Embracing Oneself Again’ sculpture comes from his ‘The Mask – Second Chance’ series of works. The work was inspired by a dried and burnt piece of wood he saw while exploring a local forest some time ago. He salvaged a few pieces, and recasted this particular stump in bronze. To add layer and nuance, he also added a mask and feet casted from an actual chicken foot.
 
“It’s hardly possible to give life a second chance simply because once it’s gone, it’s gone forever. Just like any living being, plants and trees also have many chapters of existence before they die either naturally or suddenly. We may not know what happened, but we can always try to use our imagination and creativity to give it new life.”
 
“So while we cannot bring something back as it was, we can instead bring it back as something else. They need not be gone forever and can have a second chance if we’re creative enough. That is my way of trying to inspire the living to find purpose in their lives and strive for even greater heights. As an artist, it’s what I find both challenging and fulfilling,” Chng shared.
 
And this is what allows his works to stand out. To date, Chng’s artworks have gone into public and private collections in countries such as China, Australia, the UK, France, Singapore, Hong Kong, Thailand, Belgium, the UAE and the USA, besides his native Malaysia.
 
Fan Di’an, President of China’s Central Academy of Fine Arts, once said – “Through Chng’s sculptures, we can not only see his passion, but also an emotional daily record of his life experiences. Young and talented, the artist manages to bring out the exuberance, energy and vitality of life in his works. His creations have a unique character and style, and if he stays true to this uniqueness, then I’m sure he will go far.”
 
Rupert Myer, the chairperson of the Australian Council for The Arts, also compared Chng to Down Under greats like Albert Tucker whose works touched on socialism and politics. He saw parallels in Chng’s quest to have viewers reflect on layers of meaning – be it through telling and reminding, passing on memories, or seeing something through observing something else. “These are works of art that carry a common language, speak without barriers and go beyond boundaries,” Myer added.
 
The artist’s art journey began in the early 1990s when he was doing his Bachelor and Masters in Commerce at the University of Wollongong in New South Wales, Australia. Whilst buried in books on weekdays, he would spend his free time on weekends doing pottery and painting. And he never looked back. To date, Chng has participated in almost 70 group or solo shows in Malaysia and internationally. 

Embracing Oneself Again, 38cm, 2019
Bronze, Limited Edition of 8

Besides his masterpieces, Chng also holds numerous prominent positions in arts and culture-related bodies including President of the Penang Art Society, President of the Penang Antique Collectors Association, and was a board member of both the National Art Gallery of Malaysia and Penang State Art Gallery. He also founded ArtGrup Penang and One East Museum.