KUALA LUMPUR, Feb 28 (Bernama) -- The revised Budget 2023 with the Malaysia Madani concept strives to be an all-inclusive budget. MFPC wishes to highlight the following pertinent ways an individual can enhance their financial well-being by considering some of the measures announced.
 
Automatic Dissolution of Bankruptcy – The Unity Government has provided an opportunity for individuals who have debts under RM50,000 and have been declared a bankrupt to be automatically discharge.  Whilst the debt amount has to be paid, such a measure will help such individuals opens bank accounts and purchase assets.
 
Retirement Savings- We commend the Government for sticking to principles and protecting the needs of Malaysians in the future. The one-off RM500 allocation for individuals between the ages of 40- 54 years who have less that RM10,000 is a step in the right direction. Few understand the need of safeguarding their retirement savings. To raise retirement savings, the Government should address the needs of financial literacy of all Malaysians. A programme on financial planning will help prospective participants learn how to manage their finances better. The effect of compounding interest will ensure an individual would be able to have a more comfortable retirement. The Retirement Advisory Service (RAS) is available at all EPF branches, by individuals holding the RFP/Shariah RFP designation with the intention of advising individuals on the best approach on their retirement savings.

Expansion of Tax Relief and Takaful Contributions-  Many individuals were compelled to tap into the EPF retirement savings during the pandemic. The tax relief which is expanded to include voluntary contributions of up to RM3,000 is a positive enabler for an individual’s longer term financial well-being.

Stamp Duty Exemption for Transfer of Property to a Family Member- Allowing the transfer of property between parents and children as well as other family members will be fully exempted for properties up to RM1 million. Under normal circumstances as currently practiced, such transfers receive a 25% discount. All residential property under RM500,000 will continue to be exempted from stamp duty.

Cash Aid and Food Baskets-  Whilst cash aid may be a short term solution, the Government focus of ensuring all household income in the country has at least a minimum of RM2,500 and supporting such a measure for 24 months, we strongly encourage and would support the Government to devise programmes for this individuals so that financial well-being is core and becomes a way of live. The Council have always held to the view that teaching an individual to manage their own personal finances is crucially important for an individuals financial well-being.  In line with this, the introduction of Inisiatif Pendapatan Rakyat (IPR) to help the lower income group earn between RM2000- RM2500 is commendable.

As for food baskets, we are aware of some major economies in the world moving away from such a solution after a few years. This may be a short term targeted approach for truly assisting those most in need, as we are sure that the money is used for everyday living needs.

Savings in Amanah Saham- The higher amount allocated should encourage more individuals to save for the future. One of the key aspects of financial well-being is optimization of existing financial resources. Such possibilities to improve financial well-being, could only happen if an individual is knowledgeable on their options to undertake in managing their money. Personal savings rate is the clearest sign of an individual’s financial health and one must be made aware of protecting their financial nest to attain financial well-being starts with better savings behaviour.
 
Financial literacy is a combination of financial knowledge, awareness and skills. Key to achieving financial well-being is to be equipped with the know-how of money management. In our quest to help all members of the Malaysian family to manage their personal financial affairs, we regularly have scheduled free basic financial literary sessions as well as Masterclasses. Our next session is on 13^th March 2023, a collaborative session with Bank Negara Malaysia, Securities Commission Malaysia, Lembaga Hasil Dalam Negeri. To sign up, please visit https://www.mfpc.org.my/event/my-money-me-lembah-klang/
  
Vincent Kwo Shih Kang
President
Malaysian Financial Planning Council (MFPC)

SOURCE: Malaysian Financial Planning Council (MFPC)

FOR MORE INFORMATION PLEASE CONTACT:
Name: Syed Mohd Khalil
Tel: +603 62035899
Email: khalil@mfpc.org.my

--BERNAMA