Under the Budget for year 2010, the government would impose an annual RM50 service tax on each principal credit and charge card, including free cards, and RM25 for each supplementary card from January next year.
What might happens will be:
1. The banks decide to implement the service tax waiver for selective or all clients.
2. The cardholders with unused credit cards may decide to cancel them.
3. Credit cards balance transfer to single credit card.
4. Apply for personal loan to terminate credit cards with substantial outstanding.
5. Source for funds to settle credit cards with outstanding balance.
This measure is expected to promote prudent spending with the number of credit cards having increased from more than 2 million in 1997 to 11 million as at August 2009, excluding 285,000 charge cards. Analysts said the impact of the service charge on credit cards was expected to be “mildly negative” for the banking industry. A Kenanga Research analyst who covers the sector said credit card loans in the country’s banking industry made up less than 5% of total loans.
Jupiter Securities head of research Pong Teng Siew said he was expecting about 25% of current cardholders, especially those with more than one card, to cancel their inactive cards following this proposal.
Only those Banks depended on their credit segment to drive growth for these past years will experience substantial impact on their profitabilities. ECM Libra said the service tax could well see the banking system incur up to RM542.5mil in additional expenses arising from this measure should they wish to maintain existing levels of business. Alternatively, they could “lose” as much as 50% of the cards issued but the “subsidy” to potential spenders from the system (on the assumption of the current 21.6% utilisation rate) may be reduced to about RM280mil, the research house said.
http://biz.thestar.com.my/news/story.asp?file=/2009/10/27/business/4981459&sec=business
Personal Finance, Planning and Management to Wealth Creation
At Clic Finance, you are not going to find any get-rich-quick schemes nor multi-level marketing things for wealth creation. Instead, I will be sharing the information on personal finance knowledge and related topics.
I am personally love to acquire knowledge and skills in personal finance hoping to find answers to deal with debts, how to get out of it fast and how to manage loans to wealth creation and so on.... I could said there are people who get rich quickly, but the fact is almost anyone can get rich slowly and patiently.
In your journey to wealth creation, Don’t become obsessed with money and wealth. Always Remember! Money does gives you more options, but happy and balanced life makes your life worth living. Having lots of money does not guaranttee/mean your happiness in life. You happiness come the moment you receive the services or values that money can bring you.
Learn to have a balanced happy life in wealth creation with proper saving, investment strategies and spending planning.
May be by now you are asking youself: "How I am going to start or achieve it?"
It's simple, Take your actions now and remember failure is ok. A thousand mile journey always start with the 1st step. The sooner you determined to start moving toward your goals, the easier they are to reach. Everybody makes mistake, the important point here is, have you learned anything from it. Every mistake encountered makes you stronger and get closer to the door of success. It would be better to fail once than you have never tried it.
Lastly please note that everything you read here is my own informed opinion. Never believe everything you read, and always form your own conclusions.
Thank You.
I am personally love to acquire knowledge and skills in personal finance hoping to find answers to deal with debts, how to get out of it fast and how to manage loans to wealth creation and so on.... I could said there are people who get rich quickly, but the fact is almost anyone can get rich slowly and patiently.
In your journey to wealth creation, Don’t become obsessed with money and wealth. Always Remember! Money does gives you more options, but happy and balanced life makes your life worth living. Having lots of money does not guaranttee/mean your happiness in life. You happiness come the moment you receive the services or values that money can bring you.
Learn to have a balanced happy life in wealth creation with proper saving, investment strategies and spending planning.
May be by now you are asking youself: "How I am going to start or achieve it?"
It's simple, Take your actions now and remember failure is ok. A thousand mile journey always start with the 1st step. The sooner you determined to start moving toward your goals, the easier they are to reach. Everybody makes mistake, the important point here is, have you learned anything from it. Every mistake encountered makes you stronger and get closer to the door of success. It would be better to fail once than you have never tried it.
Lastly please note that everything you read here is my own informed opinion. Never believe everything you read, and always form your own conclusions.
Thank You.
Saturday, November 14, 2009
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