Ts. Fazrul Azreen

Personal Financial Planning ; Prudent Budget Frugal Spending :  What would be your comments on the following scenarios : (1) As a former CEO of Petronas Plant, still driving Merc Benz C 200 2010 old model.  (2) As a former Senior GM of Petronas Plant, still driving Merc Benz E 200 Kompresor 2009 old model.  (3) As a resident of a medium low cost apartment in Klang Valley, but driving a luxury Vellfire.  (4) As a former Petronas Senior Manager of owning 22 condominiums in Klang Valley, but just driving Merc Benz C 200 2013 old model.  (5) As a Headmaster of a high school in Dungun, Terengganu, driving Merc Benz E 250  2014 old model.  (6) Former Petronas Technician owning 100 acres of palm oil plantation ( monthly gross earnings of RM 87,000 - palm oil sales volumes) ) , 10 acres of coconut farm, 4000 cattle, 1 acre of musang king durians farm.  (6) Obviously, Professionals have their own individual prerogatives about priorities in life.  (7) Brilliant Professionals are dextrous in comprehending liabilities, assets, net worth, priorities, financial freedom, status quo.  (8) Don't you think most Accountants, Chartered Accountants and Economists are really brilliant in financial such as building assets and investments?  (9) Living within our means against living lavishly in a rat race, paycheck to paycheck. 

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📊 World Bank Recommends Petrol Subsidy Cuts for Malaysia's Budget Goals ⛽ The World Bank suggests that Malaysia must reduce its petrol subsidies to meet its fiscal objectives in the upcoming budget. With a focus on sustainable economic growth and fiscal responsibility, phasing out subsidies is seen as a necessary step. Balancing affordability for citizens with long-term financial health is critical for Malaysia's future. What are your thoughts on this approach? #Malaysia #PetrolSubsidies #FiscalResponsibility #EconomicGrowth

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The economist advises that diesel and petrol subsidy cuts in Malaysia should be implemented gradually to manage its impact on inflation and the economy. This is because sudden subsidy cuts can lead to sharp increases in fuel prices, causing inflationary pressures and affecting the purchasing power of households, particularly the middle-income group (M40s). Gradual implementation of targeted subsidies, as announced by the government, can help soften the price impact on consumers and firms, avoid sharp inflation increases, and build government credibility for spending quality[1][3]. The government has already taken steps to rationalize subsidies, such as cutting electricity subsidies in 2023 and implementing diesel subsidies in phases in 2024. These measures aim to address the fiscal ramifications of fuel subsidies, which have grown annually at an exponential rate since the 1990s, placing growing pressure on government finances and exacerbating national deficit for over a decade[4]. The government's Central Database System (Padu) is expected to play a crucial role in implementing the targeted subsidy program and minimizing the occurrence of marginalized risks. Padu provides a combination of socio-economic information for every individual, which is an important tool in identifying eligible groups for targeted subsidies[3]. In summary, the economist suggests that gradual implementation of targeted subsidies, along with careful consideration of the fiscal and socio-economic impacts, can help manage the transition from blanket fuel subsidies to a more sustainable and equitable system in Malaysia. Citations: [1] Economist says diesel and petrol subsidy cuts need to be ... - I3investor https://lnkd.in/gpP4NsU6 [2] Malaysia must take bold economic action | East Asia Forum https://lnkd.in/gks4JUC5 [3] Targeted fuel subsidy could squeeze M40s hardest, say experts - The Edge Malaysia https://lnkd.in/gkmyUJCG [4] [PDF] Chapter 9 Economic Impacts of Subsidy Rationalization Malaysia https://lnkd.in/gD2H376A [5] Malaysia cuts fuel subsidies to boost economy, offers poor more help https://lnkd.in/gztMzwtS

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Adoption Of E-Duit Raya During Aidilfitri 1. Traditional Method (Physical Banknotes): - Many people still prefer the traditional method of giving out duit raya in the form of physical banknotes. - The custom of handing out money packets to family and loved ones, especially children, during Hari Raya is seen as a way to strengthen ties and ease the burden of the needy. - Some individuals, choose physical banknotes for sentimental reasons, as they remember feeling happy when receiving cash in their hands and want the same experience for their children¹[1]. 2. Cashless Transactions (E-Duit Raya) - Digital money transfers are appealing because they are easier, immediate, and can be accompanied by personalized messages or digital greetings, adding a personal touch to the tradition. - Banks and financial institutions offer e-duit raya transfers, making it accessible to more people¹[1]. 3. Circulation of Physical Banknotes - During Ramadan in March 2023, the circulation of RM1 notes rose by 7.25% month-on-month to RM3.34 billion. In April 2023 (when Aidilfitri was celebrated), it further increased to RM3.46 billion. - Similarly, the circulation of RM5 notes grew by 7.51% in March to RM3.33 billion, reaching RM3.44 billion in April 2023. - The RM1 and RM5 notes recorded the biggest increase in the number of banknotes in circulation during Ramadan and Aidilfitri¹[1]. 4. Digital Shift - Bank Negara's payment statistics show a significant year-on-year increasein e-money transactions. - In 2023, the transaction value of e-money stood at RM106.7 billion, with a total of 4.02 billion transactions. - E-money transactions include fund transfers and mobile remittances. - During Aidilfitri, there was a clear uptick in e-money transactions, with the volume rising 10.4% month-on-month in May 2023 to 331.9 million transactions¹[1]. In summary, while physical banknotes remain popular, the adoption of e-duit raya is growing due to its convenience and personalized features. As technology continues to evolve, we can expect further shifts toward digital alternatives during festive seasons like Hari Raya¹[1]. Source: (1) Cash still king in Malaysia during Hari Raya Aidilfitri, but e-duit .... https://lnkd.in/gngC5Giw. (2) INTERACTIVE: Cash still king during Aidilfitri, but e-duit Raya gaining .... https://lnkd.in/gbvTuDEa. (3) Maybank expects eDuit Raya transactions to grow 30% for Hari. https://lnkd.in/g_24tDKy.

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A Tale of Economic Optimism and Renewed Hope A friend of mine recently shared a hopeful prediction: "2025," he declared, "will be a year of economic resurgence. The ringgit will strengthen, and prosperity will return." I couldn't help but smile. After the tumultuous years that had passed, such optimism was a welcome change. It wasn't just optimism, though. There was a genuine belief that things were turning around. Remember the dark days of 2018, followed by the challenges of the MCO? Those years were a test, a seven-year trial that seemed to have finally ended. The news of a revitalized economy was like a breath of fresh air. People were venturing out, roads were bustling, and the general mood was one of optimism. Even the rumors of increased traffic congestion were a positive sign, indicating that people were returning to their normal lives. So, what's the takeaway? It's time to sit back, recharge, and prepare for the next chapter. With renewed determination and faith, we can look forward to a future filled with prosperity and happiness. As my friend would say, "God willing, Malaysia will always be the best."

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Budget 2025: A Sweet Deal for Malaysia? Get ready, folks. The government is dishing out a whopping RM403.7 billion for Budget 2025! That's like a giant slice of cake, divided between operating expenses (the icing) and development projects (the cherries on top). The good news? TA Securities is predicting a lower fiscal deficit, which means more money in the government's pocket. This is thanks to a booming economy and a healthy increase in tax revenue. But wait, there's more! The government plans to invest big in infrastructure, technology, and sustainable development. Think: shiny new trains, faster internet, and greener cities. And to make things even sweeter, there might be some relief for your wallet. The government is considering increasing minimum wages and offering tax breaks, which could mean more money in your pocket. So, while we might have to pay a little more for sugary treats, the overall budget looks like a pretty sweet deal for Malaysia.

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Potential Surprises and Investment Opportunities in the Construction and Industrial Sectors Potential Surprises in the 2025 Budget: While there are no concrete guarantees, based on current economic trends and government priorities, the following surprises might be in store for the construction and industrial sectors: • Increased Allocation for Public Housing: Given the rising cost of living and the need for affordable housing, the government might allocate more funds to public housing projects. • Focus on Sustainable Construction: To align with global sustainability goals, the government could introduce incentives or regulations promoting sustainable construction practices. • Digital Transformation Initiatives: The budget might include measures to accelerate the digital transformation of the construction and industrial sectors, such as investments in technology and skills development. Potential Investment Opportunities: If these surprises materialize, the following sectors and companies could benefit significantly: • Public Housing Developers: Companies involved in building affordable housing projects could see increased demand and profitability. • Sustainable Construction Materials and Technology Companies: Firms specializing in eco-friendly building materials, energy-efficient solutions, and green technologies could experience growth. • Digital Construction Technology Providers: Companies offering Building Information Modeling (BIM), drones, and other digital tools for construction can capitalize on the industry's shift towards technology. • Industrial Automation and Robotics Companies: As the industrial sector continues to automate, companies providing automation solutions could see increased demand. • Renewable Energy Infrastructure Companies: If the government focuses on sustainable development, investments in solar, wind, and other renewable energy projects could be lucrative. Factors to Consider: • Economic Conditions: The overall economic climate will influence the construction and industrial sectors. A strong economy with low interest rates is generally favorable. • Government Policies: Changes in government policies, such as tax incentives or regulations, can significantly impact the attractiveness of these sectors. • Global Trends: Global factors like geopolitical tensions, trade wars, and supply chain disruptions can affect the construction and industrial industries.

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Career Passions and Career Progressions : (1) Mentoring in Petronas : Some CEO will be assigned British Consultants as their Mentors.  Some VP will be trained at Harvard Business School.  Some Plants will assign new Recruits with Mentors for a 2 - year programs. I used to handle 3 Mentees last time.  High performing Managers with high CEP targeting for future Leaders normally will be assigned with Mentors of Top Guns.  Some of former Top Guns also will be Mentors to new CEO.  (2) The roles of Mentors : Might be of different disciplines from yours.  Will guide you on your career paths and career progressions.  Will develop you on interpersonal skills, management skills, leadership skills.  Will enhance on your networking skills.  Will analyze your strengths and weaknesses.  Higher helicopter view than yours.  Will inspire, motivate the Mentees in striving for excellence.  (3) By logic, if Managers and above are requiring Mentors, what about you as Junior Staff in any organisations? Or you wanna rely merely on your  own logic? 😂😅😃

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LEADERSHIP ACADEMY- Module 05 choices .Franklin Covey

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2024-05-11 AsSalam... Success is sweetest when shared, but at what cost? 🤔 This image captures a common narrative: stick with someone until they succeed. But let's dive deeper—should support in relationships be conditional on success? Is true partnership about weathering both storms and sunny days together? Share your thoughts below. 💬 #RelationshipGoals #SuccessStory #MaterialWorld #TrueSupport #Debate #ControversialOpinions #SocialDynamics

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I recently had the privilege of assessing post-SPM candidates for Petronas undergraduate scholarship opportunities. It's a nostalgic experience that takes me back 23 years when Petronas opened doors for me. Reflecting on the current generation, Gen Z, I've noticed some remarkable traits that set them apart from my time as a Gen Y/Millennial: 1. Digital Natives: Gen Z has seamlessly integrated technology and the internet into their lives, showcasing exceptional skills in awareness for digital tools and platforms. 2. Focus on Mental Health: Gen Z is more proactive in addressing mental health concerns, prioritizing their well-being and fostering open discussions around mental wellness. 3. Entrepreneurial Awareness: Unlike the conventional career-focused approach, Gen Z displays a keen interest in exploring non-traditional paths like startups, side hustles, and the gig economy. It's inspiring to witness the evolution of traits and values among the younger generation, paving the way for a dynamic and progressive future. #GenZ #FutureLeaders #ScholarshipOpportunities

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Corporate Deal Alert! TotalEnergies is to buy Sapura Energy Berhad 50% stake in the SapuraOMV JV for US$530 million. The Major will also relieve Sapura Energy of a US$175 million financing facility obligation. TotalEnergies will own 100% of the SapuraOMV JV after agreeing to acquire the initial 50% from OMV in January. The JV holds operating stakes in Malaysia’s SK310 (30%) and SK408 (40%) PSCs, a 40% stake in the PTTEP-operated SB412 block, and exploration acreage in Australia, New Zealand and Mexico.     The deal further boosts TotalEnergies’ Malaysian portfolio. In addition to the SapuraOMV JV, the Major has stakes in two exploration PSCs and an agreement with PETRONAS and Mitsui & Co., Ltd. to evaluate CO2 storage sites in the Malay Basin, signed in 2023.  

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According to a 2023 Graduate Employment Information Service (GEIS) report, a staggering 38.2% of Malaysian graduates were underemployed in 2022. This translates to a significant portion of the youth workforce being stuck in roles that don’t utilise their full potential. This suggests a willingness to work, but a job market failing to offer suitable opportunities. An underemployed person is someone who is working but not in a job that fully utilizes their skills, education, or availability. As examples: ▶ The person may be working part-time but desires and is available for full-time employment. ▶ The individual may be in a job that does not make full use of their qualifications, experience, or education. ▶ The job may pay less than what the person’s qualifications would typically warrant. #Underemployed

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Budget Malaysia 2025 key impacts on oil palm industry: 1) Monthly minimum wage will be raised to RM1,700 from RM1,500 starting 1 Feb 2025. 2) Government to introduce a multi-level levy mechanism on foreign worker recruitments by early 2025. The revenue collected from this levy will be channelled back to the industry to steer business processes towards automation and mechanisation. 3) EPF contributions to be mandatory for non-citizens as well. 4) Blanket subsidy for RON95 petrol will be rationalised in mid-2025. 5) Government raises the windfall profit levy threshold for palm oil to RM3,150 per tonne in Peninsular Malaysia and RM3,650 in Sabah and Sarawak. 6) Market price structure and export duty rates for crude palm oil (CPO) will be revised starting Nov 1, 2024. The current treatment for CPO exports from Sabah and Sarawak will be maintained. 7) Allocation for Felda, Felcra and Risda raised to RM2.6 billion, from RM2.4 billion in 2024.

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I had the pleasure of conducting training over 2 days on Sustainable Supply Chain and Circular Economy to adult learners at SMU Academy. We discussed how to apply concepts like Life Cycle Assessment (LCA), Product as a Service (PaaS), and Extended Producer Responsibility (EPR) to improve sustainable practices in workplace environment. The engaging questions and sharing of challenges by the participants helped us identify possible solutions and how to apply them in practical situations. #Sustainability #LCA

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TENAGA NASIONAL - Waiting for RP4 Details Investment Highlights We downgrade Tenaga Nasional (TNB) to HOLD from BUY as its share price has risen to close to our DCF-based fair value of RM14.55/share (WACC: 7%, terminal growth rate: 2%). Our fair value implies FY25F PE of 20.6x. We ascribe a neutral 3-star ESG rating to TNB. The impact of the third-party access (TPA) to the electricity supply on TNB is expected to be negligible. We believe that TNB would still be the choice of consumers due to its track record, experience and retail expertise. TNB may benefit by enjoying free-wheeling charges from the third-party’s usage of the grid network. Details on the TPA would be announced in September 2024. We believe that IPPs such as Malakoff Corporation (effective generating capacity of 4,992MW (ex-Prai)) and Edra Energy (effective generating capacity of 4,518MW in Malaysia) would be interested in TPA to the grid. As for the Energy Exchange, the single buyer would be operating the bidding mechanism, which is the platform for players to buy and sell green electricity. To recap, the Energy Exchange is expected to commence in September 2024. Single buyer is an independent entity under TNB. RP4 (Regulatory Period) guidelines will be announced in 1Q2025. Negotiations on RP4’s parameters are ongoing. Proposals will be submitted to the cabinet for approval in October. We reckon that reference prices for forex, coal and gas would be higher under RP4 as global prices have risen. This means that the ICPT under or over recovery of energy costs may be smaller in future, resulting in less volatility in TNB’s earnings. Recall that under RP3, the reference rates are US$79/tonne for coal and RM30/mmbtu for Tier 1 gas. In comparison, coal prices are hovering between US$135/tonne and US$145/tonne currently. In spite of the strong electricity demand growth of 9.6% in Peninsular Malaysia in 1QFY24, the increase for the full year is envisaged to be lower at 2.5% to 3% (vs. consensus GDP growth of 4.4%). After a strong 1QFY24, we reckon that electricity demand from the residential sector would soften as the weather becomes cooler. In any case, TNB can only recognise sales volume growth of 1.7% under RP3. Any surplus is returned to the Energy Industry Fund. TNB is currently trading at FY25F PE of 20.4x, higher than its 2-year average of 16x. —Source: AmInvest Research - 25 Jul 2024

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