On Friday, Gold made a new all-time high of $2,430/ounce.

It is up 14.50% since the start of the year, outperforming the US stock market, which gained 8.48% within a similar timeframe.

Allow us to explain why this is happening. 1. Escalating Geopolitical Tensions.

Early this morning, a new wave of missiles flew towards Israel as conflict in the Middle East worsened.

During times of crisis, nations tend to ramp up money printing to finance the war effort.

This leads to a surge in inflation and depreciation of the country's currency.

Investors, in an effort to preserve their purchasing power, will turn towards safe havens (ie. Gold, Silver, and USD).

This is why gold is not the only asset that has surged since the start of this unfortunate conflict.

15 May 2024.

This is the deadline for you to file your tax reliefs for YA2023.

Claiming these incentives will help you lower your personal income and pay less in taxes.

Here’s a FULL breakdown of what you can claim. G1. Individual relief: RM9,000

Just by completing the tax form, you’re automatically eligible for a tax deduction of RM9,000.

This relief has already been filled, so you don't need to do anything.

Disagree.

i) Hotel prices are expected to go up by 20-30%.

The entire chain is based on services: cleaning, utilities, management, etc.

Sure, this will not heavily affect the tourism industry because our ringgit is weak.

But what about local travellers??

1/4 ii) Cars will be more expensive.

The hike affects almost all players in the automobile sector: vehicle services, car rental, cleaning, etc.

The CEO of Sime Darby said that it won’t have a major impact on the automotive industry.

“The theory is that car prices will go up by 2%,” he said.

But sir, a 2% increase on an RM45,000 Axia is an extra RM900, which is a lot for those who are on a tight budget.

2/4

The ringgit plunged to RM4.7830 this morning.

Since the start of the year, the local note has declined by 4.01% and is now only 22 sen away from RM5.00.

Allow us to explain why this is happening. 1. The dollar is strengthening.

The DXY, a comparison of USD to a basket of currencies (euro, pound, etc.), gained 3.37% in the past 45 days.

ASB Historic Returns (including bonuses):

2012: 8.90%
2013: 8.70%
2014: 8.50%
2015: 7.75%
2016: 7.25%
2017: 8.25%
2018: 7.00%
2019: 5.50%
2020: 4.25%
2021: 5.00%
2022: 5.10%
2023: 5.25%

There are several reasons for the steady decline in dividends.

Allow us to explain. 1. How does ASB generate returns?

i) You buy units in ASB.

ii) ASB invests your money in assets (mainly shares).

iii) These stocks earn profits and pay dividends to ASB.

iv) ASB deducts some of the profits for expenses and fees.

v) The leftover profits will be distributed to unitholders annually.

5 places to store (and grow) your savings right now:

1. Touch n’ GO+ (3.41% pa)

✅Daily payout, Shariah-compliant
✅Deposit/withdraw instantly with DuitNow
❌Earnings rate is the lowest of all cash apps
❌Maximum deposit limit of RM9,500, not insured by PIDM

2. Versa Cash-i (Promo Rate: 4.30% pa)

✅Daily payout, Shariah-compliant
✅Deposit/withdraw in 1-3 business days
❌Promo rate applies for the first RM30,000 only
❌Not insured by PIDM

3. Rize (Promo Rate: 5.00% pa)

✅Shariah compliant, insured by PIDM
✅Deposit/withdraw instantly using DuitNow
❌Monthly payout
❌Promo rate applies for the first RM5,000 and expires on 31 December

4. ASB & ASM (4-6% pa)

✅Shariah-compliant, consistent returns
✅Deposit/withdraw in 1-2 business days
❌Payout occurs once a year, not insured by PIDM
❌Limited units for non-bumis (ASM)

5. Fixed Deposits (3.80-4.20% pa)

✅Guaranteed returns
✅Insured by PIDM, Shariah-compliant
❌Significant capital (>RM1,000) to begin investing
❌Interest is forfeited when funds are redeemed early
“Got so many options, I can’t decide.”

Here’s how we do it:

• GO+ for daily spending/savings due to its flexibility.

• Versa for short to medium-term savings (>3 months).

• Rize for the 5% promo rate on the first RM5,000.

EPF has paid an annual dividend of 6% in the past decade.

With this return, it will take 12 years for the funds in your account to double.

Using the rule of 72, you can estimate how long it takes to duplicate your capital by dividing 72 with the rate of return.

1/4 The Rule of 72 also applies to inflation.

You can find out how long it takes for the value of your ringgit to be slashed in half.

Say you have RM50k in your bank account right now.

At a mere 2% inflation rate, it will take 36 years for that balance to be worth 50% less.

2/4

The ringgit continues to rally against the US dollar.

Trading at RM4.5295, it is up 2.90% in the past 15 days.

Here’s what you need to know. 🧵 1. Yesterday, the Federal Reserve approved a widely expected 25-basis point rate hike, bringing the Fed funds rate to 5.25-5.50%.

Borrowing costs in the US are now at a 22-year high, and Chairman J. Powell indicated that the Fed would be more data-driven on future increases.

The Malaysian ringgit could fall to RM5.00 against the US dollar in the next few months, according to RHB Research.

The firm raised this alarming prediction after the local note surpassed its short-term target of RM4.60.

Here’s why this is happening. 🧵 1. The USDMYR pair has been on a relentless upward momentum recently.

In the past 20 days, the greenback surged by 4.34% to a six-month high of RM4.636.

RHB Research has set its sights on RM4.75, and said that it is entirely possible for the dollar to hit RM5.00.

1. Serba Dinamik has failed to meet its payment obligations valued at RM14.6 million provided by Public Bank and Public Islamic Bank.

The oil and gas services company, which had a peak valuation of RM5.9 billion in 2019, is now worth 99% less, at only RM74.1 million. 2. The reason behind the default is the firm’s failure to settle the outstanding payments to both banks.

Together with its liquidator, Serba has been in discussions with Public Bank to reach a resolution that prioritizes the interests of the group.

The Singapore dollar is now at an all-time high against the ringgit.

Trading at RM3.409, it is up 11.14% since March 2022.

Have a seat, and let us explain why the Sing dollar only goes up and up. 🧵 1. The Sing dollar climbed higher this week when Singapore reported hotter than expected inflation figures for April.

Overall inflation came in at 5.7% from a year earlier, surpassing the 5.5% median estimate.

These are the top 10 largest equity holdings of EPF as of March 2021.

*Note that this does not mean that EPF’s equity portfolio is 65% of MBSB, but rather, EPF owns 65% of MBSB.

1/4 As for other notable Malaysian banks, EPF owns:

• 15.11% of Public Bank
• 13.96% of CIMB
• 13.72% of Maybank
• 10.19% of Alliance
• 10.46% of Hong Leong

*Data as of May 23.

Along with RHB and MBSB, these banks offered an average dividend of 6.6% for FY22.

2/4

1. PM Anwar has announced that individuals in the top 20 income bracket (T20) will no longer receive any subsidies for electricity or haj.

He said the government is currently coordinating the allocation of subsidies based on the income of each household. 2. To address leakages, targeted electricity tariffs were introduced in the first half of this year to maintain affordable rates for households.

Anwar clarified that the tariffs will not be increased, except for those in the top 20 income group.

Amanah Saham Malaysia (ASM) has recently increased its fund size by RM5 billion.

The investment is open to ALL investors on a first come first serve basis.

Here’s a breakdown of everything you need to know about ASNB. 🧵 1. Amanah Saham Nasional Berhad (ASNB) is a unit trust company established in 1979.

There are currently 16 types of funds offered, each with a varying degree of risk.

For today’s purposes, we’ll focus on the ones with the lowest risk - ASB and ASM.

The ringgit is currently trading at 4.391 against the dollar.

It is up by over 3% in the past 35 days from a 4-month low of 4.529.

Here’s why this is happening. 🧵 1. The biggest reason for the ringgit’s strength comes from the downtrend in the dollar.

The Dollar Index (DXY), which compares USD to a basket of other currencies such as euro, yen, and yuan, shows that the dollar has declined significantly since its peak in September.

1. The voluntary contribution limit for the Employees Provident Fund (EPF) will be raised from RM60,000 to RM100,000 per annum, according to PM Anwar Ibrahim.

The date for the implementation will be announced soon, he said. 2. Anwar explained that 55 y/o retirees must have at least RM240,000 to cover their expenses for 20 years.

He hopes that the voluntary contributions, apart from the mandatory 11% employee contribution, will help to ensure that citizens have sufficient retirement savings.

Best Fixed Deposit Rates (Apr 2023 edition):

- Affin: 4.25% pa, 12 months, min RM10,000

- Alliance: 4.20% pa, 12 months, min RM1,000

- RHB: 4.10% pa, 6 months, min RM5,000

- CIMB: 4.05% pa, 12 months, min RM1,000

- Public Bank: 4.05% pa, 12 months, min 5,000

Links 👇 1) Affin Bank eFixed Deposit/eTerm Deposit-i Campaign (ends 30 Apr):

Minimum Deposit: RM10,000
Yield: 4.25% pa
Tenure: 12 months

Link:
affinalways.com/en/promotions/…

PTPTN is offering a 20% discount to borrowers who repay their debts in full and a deferral for those earning RM1,800 and below per month.

Announced in Budget 2023, the discount period will last until May 31.

More details. 🧵 1. If you repay your debts in full by May 31, you will receive a 20% reduction.

For instance, if you borrowed RM30,000, you would only need to pay RM24,000.

Before making any payments, be sure to obtain a Loan Balance Confirmation Letter from PTPTN:
ptptn.gov.my/PengesahanBaki…

The dollar is America’s superpower.

It gives the US unrivaled economic and political control over the world due to its status as the world’s reserve currency.

But the dollar’s reign is soon coming to an end.

This is the story of its epic rise and inevitable downfall. 🧵 1. Let's travel back to the year 1915.

The world was in chaos due to the First World War.

The United States, however, remained neutral during the early stages and traded munitions, food, and necessities to Europe and other warring nations for gold.

1. China and Brazil have agreed to ditch the US dollar and trade in their own currencies, the Brazilian government announced on Wednesday.

This move marks the significant shift away from the dollar as nations look for alternatives to reduce their dependence on the United States. 2. The deal will enable both nations to use the Chinese yuan and Brazilian reais interchangeably for financial transactions instead of going through the dollar.

To date, China is Brazil’s largest trading partner, recording a whopping $150.5 billion in bilateral trade last year.

1. Bank Negara Malaysia (BNM) expects Malaysia’s GDP to expand by 4–5% in 2023, as domestic consumer spending and wages continue to show strong growth.

The forecast ruled out the risks of a recession despite the grim outlook for the world economy. 2. Malaysia has bounced back strongly from the pandemic slump and expanded by 8.7% in 2022, the highest in 22 years.

BNM stated that the economy remains "fairly balanced," with China’s reopening, tourism recovery, and strong labor markets expected to support growth.