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Many people buy luxury goods to appear as if they belong to a higher socioeconomic class, especially middle-class consumers . But why do we feel so drawn to luxury items, even when they’re beyond our budgets? The answer lies in the clever, luxury brand marketing strategies luxury brands use to convince you that their products are “worth the splurge.” High-end labels have mastered the art of persuasion, using psychology and neuroscience to encourage consumers to spend beyond their means. In this article, we’ll break down these strategies, showing how they work and how you can avoid falling into their traps, while keeping your finances in check. What is Luxury Brand Marketing? Luxury brand marketing is all about positioning products as superior and exclusive . It’s not just about selling items; it’s about selling a lifestyle. Successful luxury brand marketing makes consumers feel like they’re not just buying a product—they’re buying into an elite, aspirational world of high status individuals. Status as a Driver for Consumption The main motivation behind purchasing luxury goods is often the desire for social status . People buy luxury items to improve their standing in society, seeking admiration and respect. These products become tools for social comparison, allowing individuals to set themselves apart. Luxury goods allow consumers to signal wealth and success , either to fit into a desired social group or to stand out. This behaviour is influenced by the snob and bandwagon effects—where people either want to differentiate themselves or follow trends. The Psychology Behind Luxury Brand Marketing Luxury brands don’t just sell products—they sell status, prestige, and an exclusive lifestyle . Here’s how they do it: 1. Perceived Scarcity in Creating Urgency One of the most powerful techniques in luxury brand advertising is creating the illusion of scarcity. You’ve probably seen phrases like “Only one left!” or “Limited edition!” These terms trigger fear of missing out (FOMO)  and make the product seem more valuable. Even though many luxury goods are mass-produced, brands make them appear rare . This strategy convinces consumers that these products aren’t accessible to everyone, increasing their allure. 2. Price Anchoring Price anchoring is another common tactic. High prices are used to convince you that a product is valuable. For instance, a $3,500 luxury handbag might cost only $57 to produce, but the high price makes you believe it’s special. Luxury brands use their opulent store settings and strong reputations to reinforce this idea. The association of high price with high value tricks you into thinking the product is worth it , even if the cost doesn’t reflect its true value. 3. Sensory Appeal From the moment you walk into a luxury store, everything is designed to make you feel special . The lighting, music, and personalised service all create an immersive experience that appeals to your senses. This is a key tactic in luxury brand advertising, designed to forge an emotional connection with the brand. By engaging your senses, luxury brands make the shopping experience pleasurable and memorable, increasing the likelihood that you’ll make a purchase. 4. Social Proof and Celebrity Influence Luxury brands often rely on social proof and celebrity endorsements to drive demand. When you see a celebrity using a luxury product , it makes you want to own the same item. This tactic makes you feel like buying the product will elevate your status. Celebrities and influencers are often seen promoting luxury brands in advertisements or on social media , creating an association between the product and high social standing. This drives consumers to buy the same products in an attempt to gain that sense of belonging or prestige. 5. Limiting Supply of Products Some luxury brands take scarcity a step further by deliberately limiting the availability of their products . By making items harder to get, they enhance the perception of exclusivity. Consumers are willing to pay a premium just to own something that’s perceived as rare, turning it into a status symbol. The Financial Toll on Consumers While these marketing strategies are highly effective, they can lead to overspending and financial strain, especially for middle-income consumers. The pressure to keep up with trends pushes people to spend more than they can afford. Buying luxury goods might bring short-term satisfaction, but the long-term consequences can be harmful. The excitement of owning a luxury item fades, leaving behind debt and regret. Many consumers justify overspending because they believe luxury equals success, but this can lead to financial stress and a diminished sense of security. How to Avoid Falling for Luxury Brand Tactics Now that you know how luxury brand marketing works, here are a few strategies to help you avoid falling into the traps these brands set: 1. Recognise the Tactics Understanding how luxury brands use strategies like scarcity, price anchoring, and social proof helps you resist their influence. Once you realise these are just tricks to make you spend more, you’ll be more mindful of your buying decisions. Awareness is the first step to making smarter choices. 2. Set a Budget Before shopping, especially for high-end goods, set a spending limit. This will prevent impulsive purchases and ensure you stay within your financial means. Even in an enticing luxury store, having a budget gives you the discipline to say no to items that may cause financial strain. 3. Focus on Value, Not Status Ask yourself: Are you buying the product because it offers real value or simply for the brand name? Often, more affordable alternatives provide the same quality without the high price tag. Prioritising value over status will keep you grounded and help you avoid unnecessary purchases. 4. Take Time to Reflect Don’t make luxury purchases on impulse. Give yourself time to think about whether you really need or want the item. A cooling-off period of a few days or a week helps you think clearly about whether the purchase is worth it. You’ll often find that the urge to buy fades over time, saving you from regret later. 5. Consider Alternatives There are many high-quality alternatives to luxury brands that don’t come with the hefty price tag. By exploring these options, you can get similar satisfaction without overspending. Researching alternatives also helps you avoid falling for the idea that luxury is the only way to get quality. Conclusion Luxury brands are experts at making you believe their products will elevate your status and self-worth. Through clever psychological tactics and luxury brand advertising, they create an air of exclusivity and urgency, convincing you to buy now. At the end of the day, all of us have freewill to decide if you want to splurge on a luxury good or not. However, by understanding these strategies, you can take control of your spending and make smarter purchasing decisions. Remember, real luxury isn’t about the brand you wear— it’s about the financial freedom and security you create for yourself. Stay informed, make wise choices, and focus on what truly matters for your long-term financial well-being. Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.  Reference Links: Stephanie Harlow, The luxury market in 2023: what brands should know, 30 August 2023, https://blog.gwi.com/trends/luxury-market/ David Dubois, Sungjin Jung, Nailya Ordabayeva. The psychology of luxury consumption. Current Opinion in Psychology, 2021, 39, pp.82 - 87 , https://hal.science/hal-03491184/document Fulfilling social needs through luxury consumption   The consumer psychology of luxury brands: An in-depth look   How to Use the 5 Senses In the Retail Experience | CO- by US Chamber of Commerce   The Future Of Fashion: Apparel And Luxury Brand Marketing In Post-Corona Times   Cultivating Desire: Strategies in Luxury Brand Marketing   How Luxury Consumers Think: Uncovering The Psychology Of High-End Shoppers   (PDF) Analysis of Luxury Brand Marketing Strategies Based on Consumer Psychology

Let’s face it—nobody likes being in debt. It feels scary because it means owing money and being tied to obligations. But let’s be real: most of us will encounter debt at some point in our lives. After all, how many people can afford to buy a house or car with cash these days? I’m here to tell you that not all debt is necessarily bad. Surprised? Hear me out. Minimising debt is important, but there is a difference between good debt and bad debt. Good debt can offer you long-term financial benefits, while bad debt can harm your finances. In this article, I’ll help you understand what good debts and bad debts are, along with some examples. Let’s dive in! Is there such a thing as good debt? Short answer: yes. Although having debt is not exactly everyone’s first choice, I would argue that certain types of debt can offer you significant returns in the future. What is a good debt? Good debt is something that helps you improve your financial health over time . It is often associated with investments that have the potential to appreciate or generate income. The main characteristic of good debt is that it’s used for a purpose that will provide you with long-term value or benefits. In Malaysia, several types of debt are generally considered good and can help improve your financial health over time: 1. Home loans (mortgage) A mortgage loan can be considered good debt in Malaysia due to its potential for asset appreciation, income generation, low-interest rates, and the ability to build equity over time. For example, let’s say a homebuyer in KL pays RM1,500 monthly for their mortgage. If they rent out the property for RM2,000 a month, they’ll make a profit of RM500. So, even if the market is slow, first-time homeowners can explore house-sharing with tenants to help cover the mortgage. This will not only help reduce the mortgage burden but also save on what would have been spent on renting another place. While it is essential to manage your mortgage debt responsibly, it can also be a valuable investment tool for your long-term financial growth. (Find out the three simpler ways you grow your wealth in the property market. ) 2. Student Loans Taking a student loan to further your studies is considered good debt. In general, having a better education increases your chances of being hired for a better career and earning a higher salary. According to the Khazanah Research Institute , the median salary for tertiary-educated employees (including both diploma and degree holders) was RM3,794, compared to RM1,797 for those with only secondary education. In Malaysia, PTPTN loans  are designed to help students from lower-income families repay their loans over a longer period of time. They provide borrowers with a flat interest rate of 1%, which is significantly lower compared to conventional bank loans. For example, if a student borrows RM50,000 for a repayment period of 15 years, the total interest paid would amount to RM7,500, resulting in a monthly repayment of approximately RM319.44. This way, children from B40 or M40 families stand a chance of becoming more educated and finding better-paying jobs without the burden of immediate loan repayment. 3. Business Loans Borrowing money to start or expand a business in Malaysia can be considered good debt if the venture is successful. One benefit of business loans is they provide you with the necessary capital to fund operations, purchase inventory, or invest in equipment—all important for growth. Unlike equity financing, taking a loan does not require giving up ownership or control of the business, which allows entrepreneurs to retain full authority over their ventures. They can also serve as a financial safety net, providing funds during unforeseen circumstances or downturns. So, if your business generates income and grows in value, the debt will be worth it.  4. Car Loans  While a car may lose value over time, taking out a loan to secure transportation for yourself is still considered good debt. Having a car is essential for mobility; it makes it easier to commute to work, run errands, and access a broader range of employment opportunities. Additionally, successfully managing your car loan can help build your credit score. Car loans often come with competitive interest rates and flexible repayment terms, allowing borrowers to finance a vehicle without straining their finances. What is bad debt?  Bad debt is debt that can negatively impact your financial health. It often involves: High interest rates, usually over 6% Excessive borrowing compared to your income or credit limit Purchases that do not appreciate in value or generate future income In other words, bad debt is money borrowed to finance things that lose value quickly, like clothes, luxury cars, vacations, boats, and most consumer goods. It also includes debt that becomes too large to repay comfortably. 1. Credit Card Debt Credit cards are a popular financial tool, but they can easily lead to bad debt if not managed properly. Credit cards often have high interest rates, sometimes over 20%. Many individuals in Malaysia are struggling with credit card debt; as of June 2024, we have a credit card debt of RM3.74 billion ! The convenience of credit cards can lead to overspending due to impulsive purchases, resulting in debt that exceeds your ability to repay. If you carry a balance from month to month, the interest can accumulate quickly. Carrying a large balance can be costly and hurt your credit score. High credit utilisation (the ratio of your credit card balances to credit limits) can negatively affect your credit score, making it harder to secure loans in the future.  (Find out how to make your credit card work for you .) 2. Payday Loans Payday loans are short-term, high-interest loans designed to cover urgent expenses until the borrower receives their next paycheque. These loans often come with interest rates that can exceed 400% annually, making them one of the most expensive forms of borrowing. Borrowers may find themselves stuck in a cycle of debt by taking out new loans to pay off old ones.  3. Gambling Debt Engaging in gambling can lead to substantial financial losses and personal hardship. It is estimated that Malaysians lose around RM3 billion annually to gambling activities , with a significant portion of that amount leading to debt. Unsecured personal loans without collateral can be risky, especially if the borrower struggles to make repayments. Beyond financial implications, gambling debt can lead to emotional distress, relationship issues, and social isolation. In some cases, individuals may resort to illegal means to cover their gambling debts, leading to legal troubles. Tips for Managing Debt Effectively: Create a Budget: Track your income and expenses to understand your financial situation and identify areas where you can reduce spending. Prioritise Repayments: Focus on paying off high-interest debt first to minimise interest charges. Avoid Excessive Borrowing: Only borrow what you can afford to repay and avoid taking on multiple loans at once. Seek Professional Help:  If you're struggling to manage your debt, consider consulting with a financial advisor or credit counsellor. (Learn how to effectively pay off your debt !) Conclusion Understanding the difference between good and bad debt is a must in your financial journey. While good debt can be a valuable tool for achieving your financial goals, it's important to balance it with responsible borrowing habits. Although certain debt is considered good, having excessive debt will still create financial strain and limit your ability to handle unexpected expenses. So as always, please do your own research before making any financial decisions. Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

On September 9, 2024, 99 Speedmart is set to make a significant move in Malaysia’s retail market with its Initial Public Offering (IPO) . The company plans to raise RM2.36 billion, making it the largest IPO in Malaysia since 2017 . With over 2,600 outlets serving 1.1 million customers daily, 99 Speedmart is a retail powerhouse . In conjunction with this news, this article shall break down the key details of the 99 Speedmart IPO, including its: 1. Brief Backstory 2. Their Business Model 3. Important IPO Related Numbers 4. Financial Metrics and Market Valuation 5. Growth Plans from IPO Proceeds 6. Benefit for Malaysia’s Economy 7. Challenges Post-IPO Want to Learn More About IPOs? Need a quick overview of IPOs and how they can impact your portfolio?  Check out our article: What You Need to Know About Investing in IPOs   or F.A.Q Show's An IPO Walkthru video  that can provide deeper insights into the IPO process, potential benefits, and risks, helping you make informed decisions when considering investments like 99 Speedmart. The Story Behind 99 Speedmart’s Success How did 99 Speedmart reach this monumental milestone? The journey began with its founder, Lee Thiam Wah. After contracting polio at 8 months old , Lee was left with a physical disability, facing significant challenges growing up. However, his determination and entrepreneurial spirit led him to create Malaysia’s largest mini-market chain. Driven by his belief in hard work and community service, Lee expanded that small grocery into what is today known as 99 Speedmart , Malaysia’s largest chain of mini-markets. Over the years, the company has grown to operate more than 2,600 outlets  nationwide, catering to millions of customers. 99 Speedmart’s success is built on three core values: affordability , accessibility , and excellent customer service . These values continue to guide the company’s operations today, making it a trusted name in Malaysia’s retail landscape. What’s Their Business Model? 99 Speedmart operates in the retail industry, specifically as a chain of mini-markets . They cater to the daily needs of consumers by providing a wide range of grocery and household products, emphasising convenience and affordability .  This is where their business model is centred around high-volume, low-cost retailing. By offering essential products at competitive prices , 99 Speedmart can attract a broad customer base, including those who are budget-conscious. The company has strategically leveraged economies of scale  to maintain its market dominance. Through an extensive network of distribution centres  and advanced logistics systems , 99 Speedmart ensures affordability and efficiency in its supply chain. Important IPO Numbers What makes the 99 Speedmart IPO so significant ? Here are the key numbers: • RM2.36 Billion: The amount 99 Speedmart aims to raise, signalling ambitious expansion plans. • RM1.65 per Share:  The price for each of the 400 million new shares, designed to appeal to a wide range of investors, including retail and institutional investors. • RM13.9 Billion: Expected market capitalisation post-IPO, placing 99 Speedmart among Malaysia’s retail leaders. • 55% Investor Backing: The IPO has strong support from government-linked companies and major asset managers, a positive signal of confidence from established investors. 99 Speedmart’s Market Valuation Aligns with Top Brands - Nestlé and MR DIY In FY2023, 99 Speedmart reported a net profit of RM400.2 million (4.76 sen per share) , giving it a Price-Earnings Ratio (PER) of 34.7 times . The company’s profit has grown at a Compound Annual Growth Rate (CAGR) of 13.3% over the past three years, resulting in a Price-Earnings Growth (PEG) ratio of 2.6 times. This valuation aligns 99 Speedmart with top Malaysian consumer stocks like Nestlé and MR DIY. Therefore, it doesn't just signals that 99 Speedmart is not just profitable , but also shows strong potential for sustained growth . This growth trajectory is one of the key reasons why the 99 Speedmart IPO has attracted so much attention. Solid Financial Footing Another reason for investor interest is because, as of March 2024, 99 Speedmart had a net cash position of RM27.8 million, with RM78.5 million in cash against RM50.7 million in borrowings. This solid financial footing allows the company to manage debt efficiently and reinvest in growth, making the 99 Speedmart IPO even more attractive. The ability to manage debt and still have capital for growth is a major factor that makes the 99 Speedmart IPO  an attractive proposition. The company’s solid balance sheet reduces risk for investors, making it a safer investment option compared to companies with higher debt loads. Big Investors on Board Post-IPO, Lee Thiam Wah and his wife will retain an 83% stake in 99 Speedmart, leaving 17% for public trading. Among this, 14 cornerstone investors , including AHAM Asset Management, AIA, EPF, and Perkeso, will hold 9.35% of the company.  Additionally, a moratorium  will be placed  on the shares held by Lee and his wife, restricting their sale for a specific period. This ensures ownership stability  and reassures investors about the company’s long-term growth prospects. Oversubscribed IPO by 3.04 Times 99 Speedmart isn’t just another retailer—it’s a leader in Malaysia’s mini-mart industry, holding a 40.1% market share as of 2023. The RM2.36 billion raised from this IPO is set to fuel further growth with expansion and infrastructure upgrades . The strong market interest in 99 Speedmart’s IPO is evident as the IPO was oversubscribed by an impressive 3.04 times , reflecting  high investor confidence in the company’s potential . However, it also means competition for shares will be fierce, possibly driving up the share price once the stock is listed. Growth Plans for 99 Speedmart How will 99 Speedmart use their IPO proceeds to grow the business further? Here are the notable plans: • Aggressive Store Expansion: RM389 million to open 250 new outlets annually until 2025, increasing the total to 3,000 stores. This expansion will enhance the company’s accessibility and market presence. • Strengthening Supply Chain: RM100 million will be allocated to building new distribution centres to support the expanding network. These facilities will support the expanding store network and help maintain product availability. • Upgrading Existing Stores: RM47.6 million to modernise existing outlets and enhance customer experience. This will improve the customer experience  and help  maintain loyalty  in a competitive retail landscape. • Debt Reduction: RM45 million to lower debt and strengthen financial stability as they will allocate approximately 6.8% of the gross proceeds. It helps to repay 14 term loan facilities with Alliance Bank Berhad, while pursuing more aggressive growth plans in the Malaysian retail market scene.  How the 99 Speedmart IPO Benefits Malaysia The 99 Speedmart IPO is not just a financial event to raise funds; it holds broader significance for Malaysia’s economy: • Boosting Investor Confidence: A successful IPO could attract further investments in Malaysia’s retail sector . When a major player like 99 Speedmart performs well, it often attracts more investments , leading to innovation and competition. • Creating Jobs: Expansion will create jobs, particularly in less developed areas, helping lift more people out of unemployment and stimulate local economies, further boosting consumer spending. • Improving Supply Chains: With new distribution centres on the horizon, 99 Speedmart could set new benchmarks for supply chain efficiency in Malaysia’s retail industry. More efficient supply chains can lead to better product availability and potentially lower prices for consumers . • Supporting Local Brands: With more stores and increased purchasing power, 99 Speedmart can give local products more shelf space, helping smaller Malaysian brands reach a wider audience. This support could lead to higher sales for local manufacturers and suppliers , providing them with the stability needed to grow. Challenges Post-IPO While the prospects for 99 Speedmart are promising, few challenges could impact the company’s profitability: Intense Competition: The retail sector in Malaysia is highly competitive. If 99 Speedmart cannot maintain its pricing or convenience advantage, it risks losing market share to larger players like supermarkets and hypermarkets. Supply Chain Disruptions:   Like all retailers, 99 Speedmart is vulnerable to supply chain issues. Disruptions, whether due to global events or logistical challenges, could lead to stock shortages and increased costs. Labour-Intensive Operations:  99 Speedmart relies heavily on human labour. Delays in automation or rising labour costs could impact the company’s profit margins and growth potential. Final Thoughts The 99 Speedmart IPO  represents a significant milestone in Malaysia’s retail sector. With strong financial backing, ambitious growth plans, and a solid market position, the company is well-poised for future success. However, as with any investment, it's essential to consider the risks, including market competition , supply chain disruptions , and reliance on labour . As the IPO date approaches, we encourage you to do your own research (DYOR)  to assess how the 99 Speedmart IPO  fits into your financial strategy. The decision should align with your investment goals  and risk tolerance . Disclaimer:  The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Please consult with a qualified financial advisor or do your own research before making any investment decisions. Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals. Reference Links: Who Is Lee Thiam Wah - The Man Behind 99 Speedmart? | TRP The Edge Malaysia - 99 Speedmart’s Financial Metrics The Star - 99 Speedmart IPO Oversubscribed 99 Speedmart Prospectus 99 Speed Mart IPO to raise RM2.3b, largest IPO in seven years 99 Speedmart IPO likely priced around RM1.20 to RM1.50 per share 99 Speed Mart files for IPO, seeking minimum public shareholding spread of 15% 99 Speed Mart mulling IPO at up to RM1.5 bil value, say sources 99 Speedmart SWOT Analysis - The Strategy Story 99 Speed Mart's IPO, Malaysia's largest in 7 years, oversubscribed 3.04 times | The Star

Our global landscape has been long dominated by the G7 nations ; however, a new coalition is beginning to make significant waves. I’m talking about BRICS—an informal coalition that has grown into a powerful alliance comprising Brazil, Russia, India, China, and South Africa. Together, these countries make up about 36% of the global GDP  and 47% of the global population. This coalition has transformed into a serious contender against the G7 nations and is beginning to attract interest from other nations, like Malaysia , to join the movement. What Does This Mean for the World? As BRICS continues to gain strength, it’s changing how global power is distributed. Countries, including those in Southeast Asia like Malaysia, are now thinking about their alliances and considering whether to join BRICS. The rise of BRICS is reshaping global politics, moving away from a Western-dominated world to one where emerging economies play a crucial role. BRICS represents a shift in global influence, introducing new dynamics into international relations. It’s a story of ambition, change, and a desire to rewrite the rules of the game. As this alliance grows, it’s clear that the global balance of power is shifting, and BRICS is at the forefront of this new world order. Should Malaysia Actually Join BRICS? The rise of BRICS represents a significant shift in the global power landscape. As Brazil, Russia, India, China, and South Africa assert their influence, they challenge the long-standing dominance of the G7 nations and introduce new dynamics into international relations. But what does this mean for Malaysia? Is it a trap or an opportunity? Watch my full video  on the Mr Money TV  channel, where I go in-depth into this topic. Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

Have you ever felt like you’re stuck in a loop of work and stress? That’s exactly what the rat race is—a constant loop of striving without truly living. This phenomenon is marked by the relentless pursuit of success, often at the cost of your well-being and happiness. Sadly, this is the reality for many Malaysians , and I can’t help but feel it stems from an early stage in our lives—school. What if I told you that there are things school failed to teach you? In this article, we’ll get into the 5 things school failed to teach you about money—but definitely should have!  1) You Don’t Need a Reason to Save Money This may seem obvious to some but to others, not so much. People often save only when they have a goal in mind, be it a house, a car, or even a wedding. It makes sense to save for a predictable goal but the world we live in is unpredictable. Practicing the habit of always setting money aside even when it doesn’t have a specific purpose, can buy you protection, flexibility of time, and mental peace when life decides to throw you a curveball with unexpected expenses coming up.  2) Money Can’t Buy Happiness, But it Buys Choices  There’s a common myth that money buys happiness. But here’s the truth: money buys choices. The freedom to live where you want, to work how you want, and to spend time with the people you love. But if you’re just stacking cash for the sake of it, you might end up feeling empty. The fact is, money is a tool to help you achieve your goals and shape the life you want. Being in a financially secure position will allow you to use money as a tool to create a life that makes you happy, not just to fill up a bank account. “True wealth is the ability to underwrite a meaningful life.” - Brian Portnoy 3) You are Your Most Valuable Asset  We’re often taught that money comes from a salary, an allowance, or maybe some smart investments. But here’s the real deal: money comes from you—your skills, your time, your ideas (you are likely exchanging these for money). Whether you’re working for a company or running your own gig, the more valuable your skills or time are, the more you can earn. So, the best investment you can make is in yourself. Learn something new, get better at what you do, and watch how your value—and your income—grows. 4) Understand Inflation Inflation is like a thief in the night, quietly stealing the value of your money. That million bucks today won’t be worth nearly as much 30 years from now. That’s why you need to invest. If you want to grow your wealth, you need to invest in assets that give you returns above the rate of inflation. If you’re more focused on preserving your wealth, aim to match or slightly beat inflation with safer investments. The key is to make your money work for you, not just sit there and lose value.  It's basically a one-way ticket to a sure-fire way of losing the buying power of your wealth. Cash is king in the short term but a pauper in the long term. 5. The Power of Compounding Sure, we may have learnt about compounding in Math class, but our teachers never taught us about how it applies to money. Especially when you invest early. Starting your investment early is more important than finishing strong. As Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn’t pays it.”  The Bottom Line So, there you have it. These are just a few things about money that school never taught us but are crucial for building a secure financial future. The reality is, escaping the rat race isn't just about working harder—it's about working smarter. It's never too late to start applying these principles. The sooner you take control of your finances, the sooner you can design the life you truly want. Subscribe to our   financial newsletter   for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

The stock market offers a myriad of investment options for investors. Among these options are small-cap stocks. Based on our last episode, I sat down with Frankie from the FAQ Show  to share his insights as an ex-investment banker about small-cap stocks, a segment of the market often overlooked by many investors. Key Takeaways on Small-Caps Stocks ft. Frankie from the FAQ Show 1. Untapped Potential Small-cap companies, often fly under the radar but have the ability to offer significant growth opportunities. Unlike large-cap stocks, which are widely covered and have less room for dramatic price swings, small-cap stocks can deliver massive gains as they are often undervalued and less known. 2. The Importance of Great Direction When it comes to small-cap stocks, the leadership driving the company is crucial. The direction set by the top management often determines whether the company can realise its growth potential. Understanding who is at the helm and their strategy is key to identifying a potential winner. 3. Growth Catalysts Companies like Karex , D&O , UMC , YBS , PA Resources , and QES each have unique stories and growth potential. From Karex’s pivot to branded products, D&O’s potential windfall from new oil fields, and YBS’s bold move into battery manufacturing, these companies are all positioning themselves for significant growth. 4. Risk and Reward of Small Caps Investing in small-cap stocks comes with its own risks, such as competition, market volatility , and client concentration. However, the rewards can be substantial for those who carefully analyse these factors and make informed decisions. 5. RHB Small Cap Jewel The RHB Small Cap Jewel book is a highly regarded resource in the industry, curated to highlight undiscovered gems in the market. This book has a track record of identifying companies that go on to outperform the market, making it a must-read for investors looking for the next big opportunity. Sign up here  to grab your copy of RHB’s 20th Anniversary Small Cap Jewel. Learn more about potential market leaders and how you can spot hidden gems for your portfolio. Watch the full episode here .  Interested in diving deep? Check out our full article on investing in small caps ! Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

Are you confused about the difference between investing and trading? You’re not alone. Many people use these terms interchangeably, but they have distinct meanings and implications. If you’re unsure how to differentiate between the two, don’t worry—we’ve got you covered. In this article, you’ll learn the key differences between trading and investing, so you can decide which is a better fit for you. Key Differences: Investing vs Trading Characteristics Investing Trading Objectives Focusses on time in the market. Investing involves buying assets with the intention of holding them for the long term to build wealth gradually.  Focusses on timing the market. Trading involves buying and selling assets frequently, usually within short time frames, to capitalise on short-term market movements. Time Frame Generally done for long-term (years to decades)  Typically more short-term and time-sensitive (minutes, days, weeks) Strategy  Investors place emphasis on fundamental analysis, understanding company financials, and industry trends. Traders rely heavily on technical analysis, charting, and pattern recognition.  Returns Returns come from appreciation in asset value, dividends, or interest over an extended period.  Returns come from quick profits made by taking advantage of price fluctuations.  Examples of Investment Styles include: Value Investing: This long-term strategy involves buying undervalued stocks and holding them until they reach their potential value. Growth Investing:  Focuses on investing in companies that exhibit signs of above-average growth, even if the stock price appears expensive. Income Investing: Prioritises investments that generate regular income, such as dividends or interest. Examples of Trading Styles include: Day Trading: Involves buying and selling securities within the same trading day, aiming to capitalise on short-term price movements. Swing Trading: Involves holding positions for several days to weeks to benefit from expected price movements. Scalping:  Focuses on making numerous small profits throughout the day by holding positions for very short periods. Which is More Profitable? Profitability in both investing and trading depends on various factors, including market conditions, individual skill, and strategy. Investing often yields substantial returns over a long period of time through compound growth. On the other hand, trading is potentially more profitable in the short term; however, it involves much higher risks and requires a deeper understanding of market dynamics and timing. Which is Better for Beginners? The choice between investing and trading depends on your risk tolerance, financial goals, and how much time you’re willing to commit. If you have a lower risk tolerance and want steady growth, investing might be more suitable for you. Investing aligns well with long-term goals like retirement or buying a home, as it requires less time and effort once your decisions are made. On the other hand, if you enjoy a challenge and prefer to be more actively engaged in the markets, trading could be a more attractive option. Trading suits those who have short-term goals or who thrive on the excitement of the markets. However, keep in mind that trading demands continuous attention and quick responses to market changes, which can be time-consuming and require a higher risk tolerance.  Ultimately, the best choice depends on your personal preferences and financial objectives. Warren Buffett, one of the most successful investors of all time, is famous for saying: “If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes.” In other words, time in the market beats timing the market. If you’re looking to start investing or trading, platforms like moomoo  and M+ Global provide user-friendly interfaces and a wide range of investment tools to assist with your financial decisions. Both platforms cater to both investors and traders, offering the ability to invest in stocks, ETFs, bonds, and more, all with just the touch of a button. (We’ve done the research for you!—find out which Malaysian broker is the best fit for you in our full review article .) Conclusion Many people often confuse investing with trading, and it’s easy to see why. Both involve opening an account, depositing money, and buying and selling assets. However, they differ significantly in terms of time horizons and risk levels. For beginners, investing is generally the safer choice, given its lower risk and longer-term focus. It allows you to build wealth gradually without the intense pressure of day-to-day market fluctuations.  Whether you choose to invest or trade, it’s crucial to be aware of both the rewards and the risks involved. Risk comes from not knowing what you are doing, so always make sure to do your research and consider your financial goals before making any decisions.  Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

What a time to be alive! We live in an era where, if our jobs aren’t fulfilling, we have other avenues to explore. You don’t need to be locked into one career path until retirement. If you’re considering a career change, why not take a course or attend a workshop to transition into something completely new—like becoming a full-time trader? If this sounds like the opportunity you’ve been waiting for, keep reading. Bursa Malaysia is back with the Futures Trading Apprenticeship Programme (FTAP)!  Acquire the skills needed to trade full-time in Malaysia's dynamic derivatives market.  Led by seasoned professional traders, FTAP is an immersive learning programme designed to equip you with the foundational trading knowledge and hands-on experience required to become a successful trader. The programme kicks off with two days of classroom training, where you’ll dive into Malaysia’s fast-paced derivatives market. After that, you’ll hit the ground running with 10 days of hands-on experience at the Bursa Trading Arcade . You’ll get to live the life of a real trader, while being mentored by professionals, and practice in simulated live conditions. The 3rd intake of FTAP is now open to Malaysians with a diploma as the minimum educational qualification. Programme Details: • Classroom Training: 12 - 13 October 2024 (2 Days) • Bursa Training Arcade:  14 - 25 October 2024 (10 Days) • FTAP Intake and Fees: 19 August - 8 September 2024 • Programme Fee: RM621 (inclusive of 8% SST) Don’t miss your chance to be a part of this exclusive programme! Only 30 spots are available, so make sure to apply now on   Bursa Malaysia’s website   to secure your spot in the Futures Trading Apprenticeship Programme. *Terms and conditions apply.  Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

Merdeka promotions are in every corner; there’s a plethora of irresistible deals and discounts that can make even the most disciplined shopper give in to temptation. But while it’s easy to get caught up in the excitement, staying financially smart during this period is still important. A few good tips to remember before you shop would be to set a budget , make a list of what you plan to buy (and stick to it!) , compare prices, and take advantage of cashback and reward programmes . As you shop, do keep track of your spending , and don’t let the pressure of flash deals sway you into purchasing something unnecessary. A good deal is only valuable if it aligns with your needs and financial goals. Now, let’s dive into the exciting part! To celebrate our 67th Independence Day, I’ve highlighted some special offers in conjunction with Merdeka and Malaysia Day. Shop smart, and don’t miss out on these fantastic deals! 1. Groceries KK Mart - Merdeka Promo 2024 Whether you're stocking up on groceries, essentials, or indulging in treats, the Merdeka Special Promotion at KK Super Mart  has you covered! Promotion Period: 4 August – 2 September 2024. Available at all outlets, except excluded locations . While stocks last. 2. Pharmacy Watsons To celebrate the National Month, #WatsonsMalaysia is offering an 80% discount on your second product*! Promotion Period: 6 August – 4 September 2024 (Peninsular Malaysia), 13 August – 11 September 2024 (Sabah & Sarawak). Available online and in stores. Free unique tote bag with purchase. Stand a chance to win the Cuti-Cuti with Traveloka  campaign.  3. Travel Klook - Klook Dulu As part of their #KlookDulu campaign, Klook is rolling out three exciting promotions this season: Discover Negaraku Promo:  Save up to RM499 on domestic travel. (19 – 31 August 2024) Merdeka Deals: Up to 31% off with no minimum spend on 31 August at 12 pm. 9.9 Big Sale:  RM9 deals on 9 September 2024. Jom Cuti Sekolah: Enjoy the best activities under RM50 in Malaysia. (10 – 22 September 2024) Buy 1 Free 1 Sale: Available on 16 September 2024. 4. Travel TouchN’GO: MotoInsure Cashback Campaign Need to renew your roadtax? You can get rewarded with up to 10% cashback  when you renew your motocycle road tax and insurance via MotoInsure .  Use promo code the MY2024  before you check out. 5. Electronics Samsung: Gemilang AI 2024  If you’re looking for a smart upgrade, then this promotion might be for you. In conjunction with Merdeka Day, Samsung is rolling out their Gemilang AI for All 2024 promotion with deals on Samsung TVs, selected Sound Devices and selected Digital Appliances (DA) products Promotion Period: 1 August to 30 September 2024 Exclusive Gifts: Get exclusive gifts worth up to RM1299 such as Galaxy Watch, Galaxy Fit3, with your purchase of selected TVs or selected home appliances.  AI Points & TNG e-wallet Credit: Redeem TNG e-wallet credit worth up to RM800 when you purchase AI devices to earn AI points. ALL IT Hypermarket: Merdeka Sales Get ready to bag some of the best deals in tech at ALL IT Hypermarket’s Merdeka Sales. Promotion Period: 16 August – 1 September 2024. Featured Gifts and Vouchers: Free Byte Keychain with a minimum spend of RM300. Free 1-year Byte Membership with a minimum spend of RM600. Use code MERDEKA25 for RM25 off with a minimum spend of RM1,000. Discounts of up to 50% on Featured Products: Sony SRS-XB23 Portable Bluetooth Speaker: Now RM299, down from RM499. AOC 27G4 (27") Gaming Monitor: Now RM619. MSI Thin A15 (B7UC-237MY) Gaming Laptop: Now RM3,399, down from RM3,699. And so much more ! 6. Books Book Xcess: Merdeka Deals This one is for the bookworms! Get 31% off on every fourth book you purchase. Throughout the month of August.  Promotion Period: 1–31 August Valid at BookXcess branches in Tropicana Gardens Mall and LaLaport Bukit Bintang City Centre. 7. Investment TouchN’GO: Unit Trust Merdeka Campaign 2024 Touch 'n Go is offering an EXTRA 8.31% p.a. reward * on top of your investment when you invest a minimum of RM2,000 in any Principal Invest  funds through your eWallet. Campaign Rewards & Mechanics How It Works : Launch your TNG eWallet, find the Investment tile, and select Principal, or tap directly into Principal. Select any INVEST fund. Invest a minimum of RM2,000 in a single transaction or by activating the Auto Cash-In feature. The cash-in must be successfully completed within the campaign period. Enter promo code: MERDEKA Moomoo Malaysia: Merdeka Bersama Moo To celebrate its first Merdeka Day celebration, Moomoo Malaysia is offering welcome rewards where you can claim up to RM400*! * Terms and conditions apply. How it works: Receive one FREE NVDA Stock   when you open an account, deposit RM30,000* and complete 3 Buy Trades. Receive a cash voucher of RM400  and 0.3 NVDA Stock   when you open an account and deposit RM10,000* Get   a  RM100 cash voucher*  when you open an account and deposit RM1000. 8. Food & Beverages Last but not least, here are 16 Merdeka F&B promotions that you simply can't miss! Gong Cha Walk-in to your nearest Gong Cha outlet and enjoy 67% OFF your second cup of Gong Cha this Merdeka Day. Promotion date: 31st August 2024. T&Cs: Valid for walk-in orders only. Discount applies to lower-priced drinks Not valid for seasonal and smoothie drinks. Baskin Robbins Great news for ice-cream lovers! Celebrate National Day with Baskin Robbins and get 31% OFF on all your favourite ice cream. Promotion Period: 1 August - 31 August 2024 Buy any Single King ice cream or Junior Milkshake and get the second for only RM6.70. (Second item must be of equal or lesser value than first order.) Tealive: Tealive Merdeka Promo 2024 Tealive fans this one is for you! Enjoy your favourite Tealive beverage at RM6.70 this Merdeka season. Promotion Periods: Now until 1 September 2024 Drinks Included in RM6.70 Promo: Hokkaido Melon Tea Latte Hokkaido Melon Coco Signature Brown Sugar Pearl Milk Tea Bang Bang Milk Tea with Brown Sugar Warm Pearls Red Grape Juice with Aloe Vera Mango Fruit Juice Signature Coffee Signature Coco Lim Fried Chicken: 3 Days Merdeka Promo Feast your hearts out with Lim Fried Chicken this National Day! Promotion Period: 30 August - 1 September 2024 Grab any of these for RM36: 9 pieces of Fried Chicken 1 Juicy Fried Whole Chicken 4 Pieces L-Shape Fried Drumsticks T&Cs: Valid from for Dine-in & Takeaway only Subject to 6% SST & service charge. Not available at Sandakan's new outlet. Marrybrown: MB Enjoy savings up to 30% off with Marrybrown's Merdeka 2024 Promotion! Marrybrown Rakyat Bucket: Get 8 Ayam Goreng MB for RM31.80 on 31 August 2024 . Marrybrown 15% Gift Voucher + Jurassic World Pillow valid from 28 August - 6 September 2024. How to order: Download the Marrybrown app Select the nearest Marrybrown outlet for pick-up Order the Merdeka Deal from the app More awesome Merdeka deals here! Burger King: Kita Malaysia Merdeka Promo Drop by your nearest Burger King outlet to enjoy a free Iced Milo! Promotion Date: 31 August 2024 Buy 1 Iced Milo, Get 1 Free Offer is not available for home deliveries. Gigi Coffee Get ready to savour your freedom with Gigi Coffee's 67th Merdeka Deals! Promotion Period: 26 - 31 August 2024 Limited Edition Merdeka Voucher: Enjoy RM3 OFF any beverage via the Gigi Coffee App. KFC: 31% Off on 9 Piece Chicken KFC is offering a 2 Days Only promo for your favourite fried chicken! Promotion Period: 30 - 31 August 2024 Enjoy 31% discount on 9-piece chicken RM5.50 for coleslaw or whipped potato . T&Cs: Use voucher on any drink from the menu. Available at all outlets except Mall of Medini, Genting Highlands, and airport branches. Offer is valid from 10 AM to 10 AM . Pizza Hut: Merdeka Deals 2024 Pizza lovers listen up! Grab your pizza fix from Pizza Hut this Merdeka month. Promotion Period: 26 August - 1 September 2024 Buy 1 Regular Pizza and get 1 Large Pizza FREE . T&Cs: Available for dine-in, takeaway or delivery. Available at all Pizza Hut outlets nationwide. Valid until 1 September 2024. Kenangan Coffee: Jom Enjoy 67% Off Unite together on this patriotic season with Kenangan Coffee's special offer. Promotion Period: 26 August - 1 September Get your 2nd cup at 67% off when you buy any regular or large size drink. T&Cs: Offer valid from 3 PM to 6 PM. Discount applies to the lower priced item in your order. Applicable for all handcrafted drinks exclusing Hot Teas, bottled drinks, food, and retail beans. Not applicable with any other ongoing promotions, discounts, vouchers or membership privileges. Not eligible for stamp(s) collection. Valid for all outlets in Malaysia except KLIA. Nestle: 31% Off ALL Nestle IceCream at KK Mart Craving for more ice cream? You're in luck! Head to your nearest KK Mart and indulge in your favourite Nestle Ice Cream flavours at 31% off. Promotion Period: 30 August - 1 September 2024 T&Cs: Available at all outlets, except excluded locations . Nando's: Every Bite Unites! Freedom never tasted this good! Get your friends and family down to Nando's for their Merdeka 2024 Promo. Promotion Date: 31 August 2024 Get a FREE Whole Chicken (worth RM67.90), in your favourite PERi-PERi flavour when you spend a minimum of RM 100 at any Nando's outlet ! T&Cs: 1 Redemption per table only. Dine-in only. myNEWS: 20% Off Selected Products Grab a snack at myNEWS this Merdeka Day and enjoy 20% off selected local-flavoured products! Promotion Period: 25 August - 31 August 2024 Support Lokal and Enjoy 20% off on these Local Flavour Products: Atok Gula Melaka Coconut Bun (4 pcs) Atok Red Bean Bun (4 pcs) Maru Pandan Coconut Cookie Maru Onde-Onde Nira Melaka Bun Maru Nasi Lemak Ayam Goreng Maru Nasi Lemak Maru Nasi Lemak Sambal Sotong Maru Mee Goreng How to claim: Download the myNEWS app and become a member to enjoy the promo! Daily Coffee: Buy 1 Free 1 Merdeka Promo! Grab your favourite caffeine fix or try something new with a friend! In celebration of Merdeka, Daily Coffee is offering an exciting buy 1 free 1 promo! Promotion Date: 31 August 2024 Eligible Locations: All Daily Coffee outlets in West Malaysia (except Bayan Baru) & East Malaysia outlets (Tawau outlet). KyoChon 1991 SHOUT FOR FREEDOM this National Day to enjoy free chicken from KyoChon 1991 ! Promotion Period: 31 August - 6 September 2024 Enjoy FREE 4pcs of Honey Garlic Boneless Chicken Bites with a minimum spend of RM70 in a single receipt. T&Cs: Shout “Merdeka, Merdeka, Merdeka! Saranghaeyo Malaysia!” Spend a minimum of RM70 in a single receipt. Valid at all outlets except Wisma Central, Damansara Perdana, Bandar Sri Petaling, Tanjung Pinang, Alor Setar & Miri. Limit to one redemption per table per transaction, while stocks last basis. Not valid with any on-going promotions and discounts. Beautea: Beutea X Shopee Merdeka Deal 2024 Great news for tea lovers! Celebrate Merdeka with Beutea with this tea-riffic Merdeka Deal! Promotion Period: 25 August - 31 August 2024 Grab these BEST SELLING beverages at only RM5.90 : Jasmine Green Milk Tea White Peach Bliss Oolong Milk Tea Yunnan Oolong Milk Tea How to Purchase: Search for #Beutea on Shopee . Select and purchase e-voucher. Redeem at any Beutea outlet. T&Cs: Redemption voucher is valid within 30 days of purchase. Limited to one redemption per table per transaction. Shopee e-voucher is not valid for mini program, GrabFood pickup, or delivery services. Not valid for any on-going promotions, discounts, vouchers, or free gifts. Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

In our latest episode of "Are We OK?" , we interviewed YB Howard Lee, MP for Ipoh Timor, and YB Rajiv Rishyakaran, ADUN for Bukit Gasing. Here are the key takeaways they shared:  1. Prioritising Community Needs in Malaysia In Bukit Gasing, there’s a pressing need for affordable and accessible healthcare, especially for the elderly and low-income residents. Many are priced out of healthcare services, forced to travel far, or unable to afford nearby treatments due to high government healthcare costs. The lack of a general hospital, coupled with the overcrowded and expensive University Hospital, creates significant barriers to quality healthcare. Similarly, in Pasir Pinji, a constituency with a 94% Chinese population and one of the poorest and oldest constituencies, public markets (pasar) play a crucial role. These markets are not just economic hubs but also vital social spaces, particularly for the elderly. Improving these markets is essential for boosting local economic activity and fostering community well-being. 2. Building More Liveable Cities In Petaling Jaya, there’s a call for a more public transport-centric approach to city planning. The city faces significant traffic congestion, and enhancing public transport systems is seen as a key solution to improve urban mobility and make the city more liveable. A robust public transport network can stimulate investments, create job opportunities, and contribute to urban regeneration. Additionally, urban planning in Petaling Jaya should place a higher emphasis on mixed-use developments. These developments can reduce the need for long commutes, encourage the use of public transport, and lessen the city’s reliance on cars. The ultimate goal is to create a city that’s designed for people, not just vehicles. 3. The Power of Think Tanks Think tanks play a crucial role in shaping public policy. They bring together diverse stakeholders to address complex challenges and advocate for policy changes at the local, state, and federal levels. By leveraging their research and relationships with policymakers, think tanks serve as bridges between the government and the private sector, pushing forward essential reforms. Engaging young people in the policymaking process is also vital. By providing platforms for meaningful discussions and empowering the younger generation to participate actively, we can cultivate a new wave of leaders and advocates. Ultimately, the success in addressing community needs and implementing effective public policies relies on strong leadership and a deep commitment to community engagement. Fostering collaboration with various stakeholders is key to creating lasting and impactful change. Watch the full episode  on our Youtube channel  and join the conversation on shaping Malaysia's future. Let us know your thoughts in the comments!  Subscribe to our financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

The modern economy runs on semiconductors. From the smartphones in our pockets to powering supercomputers, it’s clear that the demand for semiconductors is set to grow significantly due to technological advancements. The industry’s rapid growth, fuelled by these advancements and increasing global demand, has made it a focal point for businesses and investors alike. Malaysia’s semiconductor industry, established in 1972, has been a source of national pride ever since. Today, Malaysia holds a significant position in the global semiconductor industry, characterised by its robust manufacturing capabilities and strategic initiatives aimed at enhancing its role in the sector. Here are some key insights into Malaysia’s standing in the semiconductor industry: 1. Global Position and Market Share Malaysia is recognised as the sixth-largest exporter of semiconductors globally , with a notable 13% share in the worldwide market for assembly, packaging, and testing (APT) services. This underscores its importance in the global semiconductor supply chain, contributing approximately 25% to the country's GDP. According to statista.com , approximately 35.23 billion semiconductors were produced in Malaysia in 2023 . The market is projected to grow to a market volume of US$27.48bn by 2029.  2. Government Support and Initiatives Prime Minister Anwar Ibrahim said that Malaysia is targeting at least 500 billion ringgit ($107 billion) in investment for its semiconductor industry. The Malaysian government has implemented various incentives to bolster the semiconductor industry, including the New Industrial Master Plan (NIMP) 2030, which aims to enhance capabilities in front-end activities like wafer fabrication and integrated circuit design. This plan is expected to double the median wage in the semiconductor sector by 2030 in hopes of addressing the talent shortage and retention challenges . 3. Future Prospects The growth of sectors in AI, IOTs, and electric vehicles is expected to drive further demand for semiconductors. Malaysia aims to enhance its innovation potential through increased investments in research and development, particularly in these emerging technologies. The ongoing US-China trade tensions present an opportunity for Malaysia to position itself as a neutral ground for semiconductor manufacturing , attracting companies looking to diversify their supply chains.  Challenges Faced by Malaysia in the Semiconductor Industry  1. Talent Shortage Despite its strengths, Malaysia faces a significant shortage of skilled professionals in the semiconductor sector. The country requires around 50,000 electrical and electronics engineers annually but struggles with high turnover rates and competition from neighbouring countries like Singapore, which offers higher salaries. 2. Reliance on Foreign Companies The Malaysian semiconductor industry heavily relies on foreign firms such as Intel and Texas Instruments, with local companies having a smaller global market presence. This dependency highlights the need for Malaysia to develop its own semiconductor manufacturing capabilities further. 3. Regional Competition Malaysia is competing with other ASEAN countries, including Thailand, Indonesia, and Vietnam, which are enhancing their semiconductor manufacturing capabilities. However, Malaysia's established infrastructure and experience in the sector position it favourably to capitalise on the reshoring of manufacturing from China. QES’s New Plant in the Semiconductor Industry The global semiconductor industry is complex and ever-changing. To thrive, companies must navigate cycles, innovate continuously, and invest in growth. QES Group Berhad  is a technology company based in Malaysia, specialising in the manufacturing and distribution of semiconductor inspection equipment and other high-tech products. The company’s is geared to expand its manufacturing capacity with a new facility in Batu Kawan, Penang, to double production capabilities. This expansion includes a joint venture with Applied Engineering Technology Malaysia, enhancing QES’s presence in sectors such as aerospace and medical technology. The company’s strategic investments and partnerships aim to position it for growth in the evolving global semiconductor market, driven by increasing demand from sectors like IoT and AI. QES Group is committed to innovation and maintaining competitiveness in the global market and is focused on automation and high-precision equipment. Despite challenges like long lead times for components and the cyclical nature of the semiconductor industry, QES is poised for growth with a solid foundation in both its distribution and manufacturing operations. To gain deeper insights into QES Group and other small-cap stocks, check out the  RHB Small Cap Jewel e-book . Watch my full interview  with QES New Plant’s CEO on The FAQ Show . Subscribe to our financial newsletter for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

Is it just me, or are groceries getting pricier in Malaysia? Fluctuations in food prices are normal, but when they consistently exceed expectations, it places a heavy burden on consumers.  A netizen recently shared a grocery bill on Reddit  in April that made me do a double-take—RM 50 for just two litres of milk, a loaf of bread, and a pack of butter? That seems quite steep for just a few basic items. Are grocery prices really skyrocketing, or is this an isolated case? Let’s take a closer look A Comparative Look at Grocery Prices: Malaysia vs. Singapore In our neighbouring country, Singapore, prices are already known to be high, but let’s make a comparison. A similar grocery bill in Singapore might cost around SGD 12.90 for milk, bread, and butter. Here’s a rough breakdown of basic grocery costs for the same items: Malaysia Grocery List: • Milk 2L - RM16 • Bread 400g - RM3 • Butter 227g - RM15 Total:  RM50 Singapore Grocery List: • Milk 2L - SGD 5.75 (2X) • Bread 400g - SGD 1.95 • Butter 227g - SGD 6.37 Total:  SGD 14.07 (approximately RM42) That’s an RM8 difference that could be used for a pack of chicken rice! It really does seem like we’re getting the short end of the stick. And it’s not just me—many Malaysians are feeling the pinch. Even the prices of whole foods in wet markets have gone up. With food prices rising and the already high cost of living, everyday items are becoming less affordable. Some say the prices are justified, but I’m curious if others feel the same frustration. Are we really seeing a dramatic increase, or is this supposed to be the new normal? Malaysia's Food Inflation In June 2024, food prices in Malaysia increased by 2.0% compared to the same month last year, slightly higher than the 1.8% rise observed in May. This increase was driven by several factors: the cost of food at home went up by 0.9% (from 0.5% in May), vegetables saw a sharp price increase of 6.2% (up from 4.8%), and cereals and cereal products rose by 1.6%. Meat prices, which had previously declined slightly in May (-0.3%), experienced a small increase of 0.2% in June. Additionally, milk, cheese, and eggs saw a 0.5% rise, fruits and nuts increased by 1.9%, and sugar, honey, chocolate, and confectionery prices went up by 0.8%. Meanwhile, the cost of eating out remained high, with a 3.3% increase, just slightly lower than May’s 3.4% rise. But what’s driving these price hikes? It’s not just about inflation—several factors are at play: 1. Supply Chain Disruptions These can occur at various points, from production to distribution. Issues like shipping delays, labour shortages, or unexpected weather events can lead to shortages. When supply is limited but demand remains high, prices naturally increase. 2. Currency Devaluation When the Malaysian Ringgit weakens against other currencies, importing goods becomes more expensive. Since many of the food products in Malaysia are imported, a weaker Ringgit directly leads to higher prices on the shelves. Even locally produced items can get pricier if their production involves imported materials or equipment. 3. Increased Demand As the population grows and consumer preferences shift, demand for certain products rises. For instance, the growing preference for organic or speciality foods has pushed up prices in those categories. Additionally, global factors, like increased demand for staple foods in other countries, can cause local prices to rise due to competition for these resources. These factors combined mean that rising grocery costs are not just numbers—they directly impact how much we can buy, how we plan our meals, and how we manage our household budgets. For many, this means making tough choices about what to cut back on or finding new ways to stretch every cent.  Here's another look at some everyday costs in Malaysia: • Basic lunch in the business district: RM19 • Fast food combo meal: RM19 • 500g boneless chicken breast: RM9• 1 litre of full cream milk: RM8 • 12 large eggs (Grade C): RM11 * Prices given are based on Lotus  at the time of writing.  Many Malaysians are reacting to these price hikes with frustration and disbelief. Social media is buzzing  with comparisons and complaints. It’s clear that people are feeling the squeeze and questioning whether these price increases are justified. Local brands are supposed to be more affordable, but are they really? The items bought by the netizen were also local brands, yet the price was excessive. Imported goods often cost more, but is there a big enough difference to justify the cost? The Bottom Line Affordability varies greatly depending on income levels. While some argue that smart shopping and budgeting can help manage costs, others feel that wages haven’t kept up with these rising prices. It’s a balancing act, and many are finding it challenging to keep up. The increase in grocery prices reflects broader economic pressures and affects everyone differently. While some may find ways to adapt and manage their expenses, for many, these price hikes are a tangible strain on their finances. Check out my latest video , where I gave my employees money to shop for a week’s worth of groceries to see how much they actually spend on a single person.  Subscribe to our   financial newsletter  for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.