March, 2020 - My Awesome Moments

To take or No Loan Moratorium due to Covid 19

Due to Covid 19, Malaysian government decided to give loan moratorium for 6 months starting April till September 2020.

The moratorium applied to all banks under Bank Negara Malaysia and for individuals and SME who have housing loan, car loans or business loans. The moratorium will accrue all profit/interest from the loan.

At same time all commercial banks decided not to compound the interest accrued during this 6 months.

The moratorium is to ease financial burden to all affected Malaysians.

Let say we decided to take the moratorium. I would like to analyze for housing loan only.

So what we shall do the additional fund from the 6 months moratorium?
1) Use it if you really need it
2) Save it for emergency fund
3) Use it, to reduce your loan principal

Use The Saving from 6 Months Moratorium to Reduce Your Loan Principal

I would like to simulate what is the best way to reduce your principal. Options available as follows:
1) Use the accumulated fund to pay the principal by the end of moratorium
2) Use the monthly installment to reduce principal on monthly basis

Assumptions:

Loan Amount: RM100,000
Tenure: 30 years
Interest: 5% per annum
Monthly Installment: RM536.82

If no moratorium, the principal should be RM99,272 based on the amortization table.

housing loan amoritization for RM100k loan

1) Use the Accumulated Fund to Pay Principal by The End of Moratorium

No	Month	Principal (RM)	Profit / Interest (RM)
1	April 2020	100,000	416.67
2	May 2020	100,000	416.67
3	June 2020	100,000	416.67
4	July 2020	100,000	416.67
5	August 2020	100,000	416.67
6	September 2020	100,000	416.67

After 6 months:-
The accrued profit / interest: RM2,500
The accumulated fund saved from the monthly payment is: RM3,220.92

2) Use the Monthly Installment to Pay Principal On Monthly Basis

No	Month	Principal (RM)	Profit / Interest (RM)
1	April 2020	100,000.00	416.67
2	May 2020	99,463.18	414.43
3	June 2020	98,926.36	412.19
4	July 2020	98,389.54	409.96
5	August 2020	97,852.72	407.72
6	September 2020	97,315.90	405.48

After 6 months:-
The accrued profit / interest: RM2,466.45
The accumulated fund saved from the monthly payment is: 0

Which Option Is Better?

Principal	Amount after 6 Months (RM)	Comparison vs Do Nothing
Do nothing - principal amount based on normal amortization	99,272	100.00%
Use the accumulated fund to pay the principal by the end of moratorium	99,279	100.01%
Use the monthly installment to reduce principal on monthly basis	99,246	99.97%

There is not much difference in term of principal reduction.

Option (2) Use the monthly installment to pay principal on Monthly Basis is marginally better where it can reduce principal by 0.03%

How It Is Calculated?

Use the accumulated fund to pay the principal by the end of moratorium:

RM99,279 = RM100,000 (principal) + RM2,500 (accumulated interest) – RM3,220.92 (accumulated fund during 6 months moratorium)

Use the monthly installment to reduce principal on monthly basis:

RM99,246 = RM97,315.90 (principal on month 6) – RM536.82 (assuming reduce principal before starts interest charging from month 6 installment) + RM2,466.45 (accumulated interest)

Dividend Yields Comparison Between Malaysian Banks

Banks	Dividend Yield (%)	PE	ROE (%)
Affin Bank	3.23	6.31	5.23
Ambank	6.33	6.13	8.47
BIMB	4.65	7.84	6.23
CIMB	8.11	8.73	6.23
Hong Leong Bank	3.76	10.84	9.64
Maybank	7.23	10.80	10.05
Public Bank	4.77	10.78	12.64
RHB Bank	9.63	8.38	3.95
Average	5.96	8.73	7.81

Analysis

CIMB has the highest dividend yield but low ROE and whether the dividend yield is sustainable in the long run.
Maybank has 7.23% dividend yield which is commendable with ROE of 10% but with higher than average PE.
Ambank has 6.33% dividend yield with PE of 6.13 which is below average which is good and above average ROE.
Public Bank has highest ROE of 12.64 means it is very efficiency in using its capital vs other banks but it has very low dividend yield.

Conclusion

Based on the numbers, without evaluating its long term business, I would buy Ambank it has 6.33% dividend and take only 6 years to recover the capital.

However on safe side, it is better to buy Maybank shares as it is innovative in digital area for example first to introduce online banking and digital payment which I think is the new disruption in banking sector.

Notes

Total dividend amount declared for financial year ended 2018-12-31

Bank Islam
Affin Bank
CIMB
RHB Bank
Maybank

Total dividend amount declared for financial year ended 2019-03-31.

Ambank

Total dividend amount declared for financial year ended 2019-06-30.

Hong Leong Bank

source: MalaysiaStock.biz

Kangaroo Math Categories

I sent my kids to join Kangaroo Math competition every year. Kangaroo Math questions are more problem solving rather than testing your kids Math aptitude.

I want my children to see how Math is used to solve daily and simple problems.

Kangaroo Math have 6 categories.

Pre Ecolier	Ecolier	Benjamin	Cadet	Junior	Student
Public: Year 1 & 2 International Year 1 & 2	Public: Year 3 & 4 International: Year 3 & 4	Public: Year 5 & 6 International: Year 5 & 6	Public: Form 1 & 2 International: Year 7 & 8	Public: Form 3 & 4 International: Year 9 & 10	Public: Form 5 & 6 International: Year 11 & 12

Good Kangaroo Sample Questions

Vista Residence Homestay Genting Highland Review – My 4 Days 3 Nights Stay

Again we went to Genting Highlands for our short relaxing vacation together with my parents. My parents for quite some time didn’t go to Genting Highlands.

This time we stayed at Vista Residence near to Petron petrol station and Starbucks.

The condo looks luxurious from outside. Even the unit itself feel luxurious. Internet YES was provided at the unit I stayed but it was quite slow. I think generally in Genting Permai, the internet it not that good.

Bedrooms

I stayed in 3 bedrooms unit with 2 queen beds and one single bed. It is suitable for guests of 4 adults and 3 kids. The bedrooms doesn’t provide night lamps so it was really dark hard to go to the toilet in the night. So I had to switch on the toilet light and opened a bit the toilet door.

The third bedroom the aircond remote was not working.

The floor is parquet so your feet are not cold due to the coolness of Genting Highlands weather.

Living Room & Veranda

The ceiling fan at the living room was a bit dusty.

It didn’t have shoes rack, so when 7 guests in the unit, the floor looked messy due to the shoes.

It had big veranda but it was a bit dirty because got few cigarettes buds drop from unit above me and the view is not that nice as it was looking towards the highway. You could hear the noise of the highway if you opened the sliding door at the veranda so at the end you can’t get the cool breeze going into the unit.

Bathrooms

For the bathroom, it is not that clean especially on the toilet bowl and the water pressure was quite low for my liking. Beside glass to put your toothbrushes were not provided.

No bidet provided some more!

Anyway the host was responsive when we wanted additional soap because the soap were a little bit only when we checked in.

I went to the gym every morning to have my light exercise. I like the gym because easy to go from the unit.

Swimming Pool

It has lap swimming pool and kids swimming pool with jacuzzi.

The swimming pool was not heated though. It was really cold. But my kids went to the swimming pool anyway.

Parking

Parking was hard to find at first because host just give the parking number. Hard to find it.

When it is raining, you will get wet just to touch the access card to open the parking barrier.

Recommendation

In short, I won’t stay again at Vista Residence due to amenities at the unit is not well thought and water pressure is low.

Besides the swimming pool is not heated.

Location

<iframe src="https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d3982.8470793260494!2d101.77048125007819!3d3.3875005525743007!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x31cc15b5358955c1%3A0xa3420d5945c444f4!2sVista%20Residences!5e0!3m2!1sen!2smy!4v1584058262999!5m2!1sen!2smy" width="600" height="450" frameborder="0" style="border:0;" allowfullscreen="" aria-hidden="false" tabindex="0"></iframe>

The Condominium

vista residence genting highland condominium

Entrance To Parking

vista residence genting highland parking entrance

The Facilities

vista residence genting toilet and changing room

vista residence toilet and changing room

vista residence genting common facilities

vista residence common facilities at night

The Room

vista residence genting electric kitchen hob

Midhills Homestay Genting Highland Review – My 2 Nights Stay

Short Vacation at Genting Highlands

We went to Genting Highlands for short relaxing vacation. We needed 3 bedrooms as we have 7 family members, 4 adults and 3 kids.

For our stays, we chose AirBNB because it gives as better room space, kitchen area and better pricing compared to hotels. Furthermore there are lots of new condominium in Genting Highlands.

We have few options to choose for:
1) Geo 38
2) Vista Residence
3) Midhills

We decided to stay in Midhills because it offered best price for 3 bedrooms.

Water pressure at Midhill is superbly good. When you are showering, you feel awesome by the water pressure.

Floor is tiles so a bit cold at nigth.

The unit doesn’t provide aircond only ceiling fan. But Genting Highland is already cold, so you can sleep well at night without the aircond.

The LED TV doesnt have USB port to play my movies inside my external hardisk. It has NJOI and internet. Network coverage is a bit bad here . Only 3G so internet a bit slow.

Recommendation

I recommend MidHills Condominium because it offers:

1) Best value for money
2) The unit I stays is really cozy and provided with lots of simple things but give lots of convenient.

Location

The Condo

The Unit Layout

I stayed inside a unit of 2+1 bedrooms, size of 999 sqft. The third room doesn’t have a wall, so the owner did a sliding door as separator for the third bedroom.