Income Tax Malaysia – Not Claimable Tax Relief YA2015

Income Tax Malaysia – Not Claimable Tax Relief YA2015

tax planning YA2015

Time to do tax!! Again it’s the time of the year to do Tax be it employment income, rental income or business income… I believe you would be busy checking and finding ways on how to maximise the tax savings!

With the downturn of economy, increase in consumables prices higher than the increase in increments, market softening for most businesses, implementation of GST with high penalties of offences if caught b it due to error or fraudulent reporting, and many many more reasons… everyone is trying very hard to save money by maximising income tax deductions through tax reliefs and tax rebates including myself!!

After purchasing and paying for everything in the last year expecting to get some of the reliefs can be claimed for this year too… bad news as some of the expenses are no more claimable in YA2015… It’s like “while stock lasts” feeling…

Let me run through the few tax reliefs which are not available for claim in YA2015:


1) Tax Relief for Broadband Discontinued in YA2015

with effect from year of assessment 2010 – 2012




Come the month of April, many Malaysians scramble to file for their personal income tax and claim for tax rebates. Seasoned pros treat it like a yearly routine to be done and dusted in a jiffy, while first-timers find the process daunting, especially when there are financial, technical and even legal considerations involved.

With the Goods and Services Tax just around the corner, many are putting in the extra effort to seek ways to maximise their income tax deductions through various reliefs and rebates available. The bad news is, some of you may quickly discover that some items that were previously eligible for tax relief purposes are no longer available.

Here are a list of items that you wish you could still claim for tax relief:

1) Your broadband service

What do gaming fan boys and Instagram aficionados have in common? Both will not be getting any tax relief for their broadband subscription this year, that’s what!

Up till the year 2012, tax payers could lay claim to up to RM500 for broadband subscription under a personal name. It can be in the form of fixed-line service provider such as TM Streamyx or wireless internet broadband packages offered by Maxis, Celcom or DIGI.

While you won’t be getting any relief for your broadband subscription this time around, you can still stretch your Ringgit further by choosing a broadband package that is best suited for your browsing habits and lifestyle needs.

2)  Your new iPad

There’s good and bad news for gadget geeks.

The good: Purchase of personal computers and laptops (including MacBooks) continue to be tax claimable for up to RM3,000 (but only once in every three years).

And the bad: From assessment year 2013, the Inland Revenue Board of Malaysia (LHDN) has declared that tablet devices, which include Apple’s iPads, Samsung Tab and Google’s Nexus 9, are not included in the list of tax deductible items.

So tablet owners will not be getting tax relief for their purchases this year. However, you still stand to enjoy some pretty cool privileges the next time you plan to purchase a tablet by using a credit card that rewards you for your spending.

For example, CIMB Bank cardholders get to enjoy 10% discount on weekends when they make a purchase on Lazada. Meanwhile, the Standard Chartered CashBack Gold MasterCard offers 5% cashback for shopping expenditure exceeding RM1,500 per month.

3) Your home loan interest

It has been tough for many Malaysians to afford their first home to due the escalating property prices. To make matter worse, the tax relief for interest expended for the first three years of a residential property has not been extended.

Homebuyers who signed their sales and purchase agreement between March 10, 2009 and December 31, 2010, had formerly enjoyed a tax relief of up to RM10,000 (for just one unit) every year for the first three years on the interest of their housing loan. The last claim allowed for this was for assessment year 2013.

For buyers who bought properties after 2010, they will no longer enjoy any tax relief for their property, but instead be slapped with a higher Real Property Gains Tax (RPGT) from 15% to 30% for properties disposed in the first three years.

It’s not all gloom and doom…

Tax payers may have a harder time finding ways to utilise their tax reliefs this year as compared to the years before, but they can look forward to paying less taxes in the year ahead.

For Budget 2015, the Government has reiterated its commitment to cut income taxes by between 1% and 3% for the 2015 year of assessment. This means some 300,000 individual taxpayers will no longer have to pay income tax.

Under Budget 2015, Prime Minister Datuk Seri Najib Tun Razak also announced that taxpayers with family and income of RM4,000 or less per month will not have any tax liability.

Maximum income rate has been increased from RM100,000 to RM400,000 when you file for tax next year. The current maximum tax rate of 26% has also been reduced to 24%, 24.5% and 25% for assessment year 2015. This will result in tax savings of at least 5.3% for the tax payer.

As Benjamin Franklin once said: death and taxes are the only things in life that are inevitable. Nobody enjoys tax time, but it doesn’t always have to be a dreary affair. Armed with the right information, you will be able to accomplish this yearly chore in a relatively easy and pain-free manner. Who knows, you may be getting back some cash in tax refund too!


home loan insurance

4 Most Common Mortgage Traps

4 Most Common Mortgage Traps

Common Problems Faced by Home Loan Borrowers in Malaysia

Real estate properties in Malaysia cost relatively lower compared to neighbouring Singapore and Hong Kong. However, buying a house in the country – for both citizens and foreigners – is likely to become an even greater challenge due to a variety of factors, among them, growing interest rates on housing loans, rising property costs, and the unavailability of properties their income affords. In a nutshell, the basic laws of supply and demand is what has been primarily driving up real estate prices.

The government has set in motion initiatives such as PR1MA (1Malaysia People’s Housing Programme) and SRP (My First Home Scheme) to help citizens afford homes more easily but it low would take some time to gauge the effectiveness of these government schemes. Reports say only a small percentage from the hundreds of thousands of mortgage loan applications have so far been approved under the said schemes.

Low income

The higher your income, the easier it will be to get approved for a mortgage loan, and applying for mortgage loans can be a problem to low-income to middle-income families.  Even those on the higher end of middle-income workers earning between RM4,000 – RM7,500 might not find it easy to get approved for a loan with Bank Negara Malaysia’s tight restrictions on mortgage loans.

Programmes like PR1MA area  designed to make owning a house more affordable to Malaysians. However, the bigger problem is that not many families can afford even a unit that costs as low as RM100,000 to RM400,000 per unit on an average income of RM4,000 a month or even less.

Kluang MP Liew Chin Tong was one of those who voiced out concerns about the problem of high property prices against income levels of a majority of Malaysians. He bemoans how the government has approved only a small number of mortgage loans under the SRP scheme despite having been active since 2011. SRP offers 100% loans for first-time buyers earning below RM5,000 a month. “On paper, this sounds like a good solution to ease the house-hunting dilemma of young working adults. In fact, calculations will show that the figures are too good to be true for young, middle income, families,” Liew said in an interview with Astro Awani.

Tax gains and rising value of property

According to the planned budget for 2014, the Malaysian government is set to double real property gains tax (RPGT) from 15% to 30% on properties disposed within three years of purchase, among other related measures to prevent real estate prices from ballooning out of control. Some industry observers speculate that raising RPGT could push real estate prices even higher and make it more difficult for first-time home buyers to afford a home.

Also beginning January 1 next year, property developers and financial institution will no longer be allowed to implement the Developer Interest Bearing Scheme, wherein the developer absorbs the interest on mortgage loans during the period when the property on sale is being constructed. There may also be ramifications related to partnerships with private organisations co-investing in the constuction of housing units.

Hefty interest rates

Real estate costs may be relatively cheaper in Malaysia, but interest rates on mortgage loans are definitely higher in the country than countries like Singapore. The good thing is that once granted a home loan, banks would usually cover up to 90% of the total property cost. However, low-income to middle-income Malaysians may not always have the means to make the 10% downpayment. Even if they are able to, repaying a loan plus interest could really eat up a huge percentage of their monthly income and drive them deeper in debt.

Scarcity of land and construction delays

While it is true that the government is already in the process of building low-cost homes under the PR1MA scheme, most of the planned units would be built in areas where demand by first-time home owners is lower than existing owners, specifically on lands owned by federal and state governments. Furthermore, the first batch of 80,000 units will not be ready for vacant possession until around 2015-2016. Property laws and regulations differ in every Malaysian state, leaving production timelines and capabilities in the development of low-cost housing uncertain.


With all these challenges home buyers face, Malaysian citizens would do well to review options carefully before jumping in. They should learn how to determine how much they could afford without stretching themselves out too thin. Income, existing debt, and amount of savings are things property seekers would want to look at before considering applying for mortgage loans.

A good rule of thumb is to never take a mortgage loan that exceeds a third of your monthly income. Find out everything you need and compare mortgage loan packages closely so that you don’t miss out on worthwhile options.


search keywords on google: mortgage malaysia, mortgage rate malaysia


This article is exclusively written for by The Malaysia’s leading financial comparison portal which helps consumer in finding the right financial products at the right price. Please do check our website to learn more.


How BLR Increase Impact On Your Housing Loans

How BLR Increase Impact On Your Housing Loans

Has BLR Increased?

When did BLR Increased?

Why did BLR Increased?

How will BLR Increase Impact on my loan instalment repayments?

Whether knowing or unknowingly, Bank Negara Malaysia has increased the BLR rate to 6.9% p.a. from the current 6.85%. Well… how do I know? Didn’t your bank call and inform you that your housing loan interest rate has increased? I also got to know through a friend that met few days ago… He was surprised by the increased in installment and when he called the bank… He was even more surprised when the bank mentioned that Bank Negara Malaysia (BNM) has increased the BLR rate from 6.85% to 6.9% last month (Feb 2016)… Is this true? Not sure. Any official reports? None that I can find other than the report I attached below that I found online latest update: January 2016

how will blr

The next question would be… I thought BLR rate should be standard across all banks as it is the rate from BNM. But again, I am not sure why some banks apply different BLR rates. Then it would be really a scare if your bank that you took the housing loan from back 3 years ago is charging over 6.95% BLR ++.

Let’s talk about what will happen when the BLR went up or when the BR increase or when the interest rate for your housing loan increased. There are 3 options for you if the interest rate went up:

1) Increase in monthly instalment payments

2) Increase in loan tenure with the existing instalment payments

3) Ignoring the increase in instalment payments, and bank would include the outstanding amount in CCRIS report


Do you know that the 1% increase in the home loan interest rate will increase your home loan tenure to another 10 more years if you did not increase in your monthly loan repayments? How then do you think is the best way to protect yourself against the increasing in interest rates? Will BLR increase? What do you think? Read more in my article.

Have you ever thought why the banks are not able to offer fixed rate housing loan? And also only offering very low interest for fixed deposit? Banks are govern by BNM. So if BNM is increasing the interest rate, how then do you think the banks will act? Of course they will act in tandem with BNM’s direction. If BLR increased, the bank loan interest rates will move in tandem and will increase as well. This is because the banks are using borrowed money to lend to the borrowers – housing loans.


How to protect yourself against the fluctuations of BLR rate?

There is fixed rate home loan in the market provided by AIA. Protect yourself against interest rate movements so that you could have a good night sleep even when the interest rates shoot up in the future. With a fixed home loan rate, you would be securing your instalment payments and the interest payments would be predictable at all times for the entire duration of the loan. This would be in your favor and you are able to save on the interest payments when the interest rate goes upwards.

On the other hand, if the interest rate goes downwards, you could always opt for refinancing at a lower rate. You have nothing to lose.

So while it is difficult to forecast the Malaysia BLR rate trend, it would be a good time to reassess your current home loan plan and check with your financial consultant to protect yourself against uncertainty. Don’t wait for the adjustment to take action and end up paying higher interest on your home loan.

Have you ever thought why AIA is able to offer fixed rate housing loan? I tell you this. Because AIA has very strong financial status and is able to provide the fixed rate housing loan as a added value service to our customers. All BECAUSE AIA CARE for you! Call us now for a free consultation on your housing loan at 017-3237506 (Andrea Loh).


Other related articles:



Fixed rate loan or BLR Malaysia (BLR rate) pegged loan is better?

Fixed rate loan or BLR Malaysia (BLR rate) pegged loan is better?

The Millionaire Coach – Azizi Ali mentioned that the fixed rate loan is better then the Based Lending Rate pegged loan (BLR Malaysia) as no one knows what the interest rate will be like in 5 years time, let alone in 35 years across the tenure of the mortgage loan.

A housing loan is often one of our single biggest long term financial commitments. Since 2010, the Malaysian Based Lending Rate (BLR Malaysia) has gone up by 1.05% p.a. and with rising inflation, it gives another cause of concern and nobody would be immune to it.

Due to the uncertainty in the rising of the Malaysia’s  home loan interest rates, AIA is providing a Fixed Rate Loan to reduce the exposure of fluctuating cost mortgage loan for Malaysian properties. Refer to the below articles on the Malaysia housing loan interest rate trends.


Articles on the Based Lending Rate (BLR Malaysia)

Star Biz – 24th March 2011


“..borrowers would also be stressed-tested in the event based lending rate (interest rates) were to rise by 100 to 200 basis points from the time the loan is applied..”





The Star – 20 March 2012



•Household Debt rose 77% (2011) of GDP mortgages  45% – largest component
•RAM-“We do not discount additional prudent regulations to be imposed..”
Implication of new capital requirement under Basel III in 2013 will impact consumers!


•“Although these new capital measures would elevate banks’ funding costs, which may in turn be passed on to consumers it would ensure the banking sector was safeguarded against unexpected shocks.”

•Net Interest margins (*NIM) under pressure for loans such as residential mortgages. (*NIM- difference between interest income less interest paid to depositors.)

Will this give pressure to banks to increase interest rates in longer term?


News Straits Times – 10th May 2012


“expects to resume tightening* no later than next year.”

* raising interest rates (increase in Based Lending Rate – BLR Malaysia)

~ Director of Economic Research ~ AmResearch Sdn Bhd




“odds of BLR Malaysia rate hike would start to increase from end 2012 and 2013”

~ Citigroup Economist





Stress test guideline from Bank Negara Malaysia (BNM)

All Malaysian Banks are mandated to “perform” stress test for each loan application – to show impact of an increase in increase rate by 1% and 2%.

Many other tightening lending guidelines were also introduced on the eligibility based on DSR/net income after tax, EPF and SOCSO which includes the restriction on:

a) maximum tenure of 10 years for financing extended for personal use;

b) a maximum tenure of 35 years for financing granted for the purchase of residential and non-residential properties; and

c) a prohibition on offering pre-approved personal financing products.

To know more about the fixed rate home loan, please contact us for a free consultation – 0122128008. You have nothing to lose.


Related topics:

Income Tax Malaysia – Deductions, Reliefs, Rebates and Exemptions – YA2015

Income Tax Malaysia – Deductions, Reliefs, Rebates and Exemptions – YA2015

Income Tax Malaysia – How to save and pay less tax in YA2015

Good tax planning
Good tax planning for Malaysia


Whether you like it or not, everyone is bound to file and pay tax to government when time comes. For those working for companies – employees, your deadline for submission is on 30 April and for those with business income, the deadline for filing submission is on 30 June. Do you know that you have a grace period of 15 days for submission is you do the tax filing via online submission. Just go to this website to file tax online:  If you need any help, feel free to contact us and we will try to help you.  


14 Ways to Maximize Your Savings on Income Tax Malaysia – YA2015

1) Medical expenses for parents includes hiring a maid – RM5,000

The maximum medical expenses for parents which could be claimed is RM5,000. You should accumulate all the medical check-ups that your parents undergo which includes specialist consultation, small operations, yearly normal check-ups, early cancer check-up, vaccination, orthopedic consultations, hospitalisation and even dental treatment limited to tooth extraction, filling, scaling and cleaning. You can even claim deductions for the maid you hired for your parents who require special care or require day care or home care services. To claim this, you would require the doctor’s letter that your parent’s medical condition requires special care.  

2) Basic Supporting Equipments – RM6,000 (for YA2015)

Don’t look down on this relief of RM6,000. It can really bring down your tax bracket and reduce your tax as well. These basic supporting equipments include buying crutches, special bed, walking stick (“tongkat”)… and of course please don’t confuse this “tongkat” with “tongkat ali” ya. Buying “tongkat ali” cannot claim unless it is prescribed by the doctor, then claim under medical expenses. So do collect and keep these basic supporting equipment receipts as well for tax relief claims.

3) Annual medical checkup – RM500, Medical for serious diseases –  RM6,000 (for YA2015)

You are given RM500 limit for complete medical examination for yourself, spouse or children. So if you have a practice to for an annual medical check-up or to do a comprehensive blood check with Pathlab or the Healthcare Centre, remember that this is claimable as well.  It’s good to once in a while do a full body check up so that you can detect any early symptoms of critical illness.

The maximum of relief of RM6,000 a year is given to reimburse any medical expenses for serious diseases for self, wife and child. This relief includes the full medical examination amount of RM500 (if any). You have to note that serious diseases includes AIDS, parkinson’s, cancer, renal failure, leukaemia, heart diseases and related diseases which is not spelled out… So maybe is based on LHDN’s discretion as well whether sickness such as kidney failure that require frequent kidney dialysis qualifies as serious disease. In my opinion, the insurance coverage of the 36 critical illnesses would be a great reference of serious diseases… What do you think?

4) Improve yourself by taking courses and get refunded – RM5,000

Now is your chance to upgrade yourself by going for courses and improvement programs to keep up to the ever changing and demanding world. Remember to obtain and keep the receipt for the training that you attended, be it locally or international. You can claim up to RM5,000 for the training programs that you attend for the purpose of:

a) For acquiring skills or qualification on technical, vocational, industrial, scientific, ICT, accountancy, Islamic finance and law.
b) Masters or Doctorate level of any course of study.

5) Adopt the culture of reading and get rewarded – RM1,000

The government campaigns for good reading culture among Malaysians by giving subsidy of RM1,000 in forms of claims from the purchase of books, journals, magazines and all sorts of publications. This purchases could include the textbooks required for your children, comic books and e-books that you buy online. Do remember to keep the receipts when you visit the book shop.

6) Replace PC – RM3,000 (iPad or a tablet no more claimable)

Is your computer running slow recently due to lack of speed and not much space left in your hard disc? Your computer is more than 3 years old? Fret no further, you can get yourself a new computer and be refunded up to RM3,000. Answer from LHDN regarding if the tablet can be claimed under self relief: If the tablet computer only have computer features and is for home and family use only, then it will be treated as “computer” and is entitled to the personal income tax relief of up to RM3,000, claimable once in 3 years. A tablet or an iPad can also be claimed as long as it does not have a calling and SMS feature but you still can use it with WiFi and 3G features to make calls from Skype, Tango, WeChat, etc. This claim can be done once in every 3 years.

From assessment year 2013, the Inland Revenue Board of Malaysia (LHDN) has declared that tablet devices, which include Apple’s iPads, Samsung Tab and Google’s Nexus 9, are not included in the list of tax deductible items. Bad news for us… no more claims for these cool gadgets…

7) Take up a sport to improve your fitness – RM300

In government’s effort to drive good health and sports for Malaysians, you can be refunded on the sport equipment purchased during the year. Now you can buy your dream bicycle, badminton racquet, squash balls, golf balls, etc. This claim excludes sports attire such as swimsuits and sports shoes. Anyways, take this chance to keep fit and stay healthy! However, this relief is not applicable for membership for fitness club or even swimsuit and sports wear as well. So please ensure that you only claim your sports equipment for this relief…

8) How buying insurance can reduce your income tax – RM9,000

This is a big topic by itself. Will try to summarize in a nutshell on how you can save on tax by insuring yourself and your family. You can claim 2 types of insurance/scheme:

  • Life insurance premiums and Employees Provident Fund (EPF) : RM6,000
  • Education or medical insurance premiums for self, spouse, or child: RM3,000 

You can get exemption on the insurance premiums which include life insurance, investment link products, education plan and medical insurance plan.

9) Invest in Private Retirement Scheme – RM3,000

This is not really new and not entirely old investment in the market – Private Retirement Scheme (PRS) introduced 3 years ago. You can invest with AIA and get an exemption of up to RM3,000 on your investment. Please click here for more details on AIA PRS. So in essence, you can use insurance as a form a forced savings with protection, and get some returns, and at the same time, you can get tax exemption! Call us to know more.

This Private Retirement Scheme (PRS) /Annuity Premium investment relief of RM3,000 is only given up till 2021. So continue investing every year to maximise your tax reliefs and at the same time, save for a more comfortable retirement.

10) More children means more relief given – RM1,000 per child

Every child is given RM1,000 ordinary child relief and there is no maximum to the number of children you can have. So this means, the amount of children in the family would determine on the amount of relief from tax. If they are already 18 and above, still unmarried and studying pre-university, you are still eligible to claim RM1,000 for each child. If they continue to study diploma or degree, you can claim up to RM4,000 relief for each child doing further studies. Of course, you can totally ignore the opportunity to claim children relief once they are married.  

11) Savings in SSPN scheme – RM6,000

With effect from YA 2012 until YA 2017, net saving under National Education Savings Scheme (SSPN)’s scheme for your children can reduce your tax. If you plan to let your children study in Malaysian Universities, you can open a SSPN account for each of your children and get relief from tax. With this scheme, you can save for your children’s education, get insurance protection for low income earner, annual dividend and at the same time reduce tax! Click here for more information:

12) Deductions for donation to approved institutions

You may want to declare any donations you have made especially to approved institutions such as “approved” old-folk homes, schools, temples, churches, mosque and charitable organisations to claim for more deductions. Please note that the donation amount that can be claimed is restricted to 7% maximum of total income. You can check the list of approved institutions at: You can check out some donations that do not have restriction of 7% for example, donations to the government and state government. Refer to the website for more information:

13) For married couples where both earn income, file your tax separately

Consider filing separately if you are married as the reliefs and rebates are twice the amount where both of you can claim for the maximum reliefs and deductions based on your individual income. Moreover, if both of you file separately, your chargeable income maybe be lower with lower effective tax bracket.

14) Reduce your tax further with tax rebate

So after all the deducting all the reliefs as mentioned above from your taxable income, if your chargeable income is less than RM35,000, there is a rebate of RM400. Payment for zakat or fitrah is subjected to the whole amount of the tax charged.  

The ultimate plan

All in all, you must abide to the Malaysian tax law. The rule is to safe tax and not to evade the income tax Malaysia. This is done by minimizing your chargeable income by maximizing the reliefs, deductions, and rebates. Knowledge can help you reduce your tax. One final reminder that I want to emphasize is to keep proper records for 7 years, get the filing done and keep every single receipt. Be it small or big items, even the faded receipts like the petrol slips, keep it as an evidence of that you have paid the amount and entitled to the claim.

Contact us if you have any tax planning queries.


Other related topics:

Should I Upgrade My Medical Card?

Should I Upgrade My Medical Card?

When did you last check your Medical Card coverage?

With the Rising Medical Costs with the implementation on GST even on medical care, inflation and more advanced medical technology, have you upgraded your medical card?

Is your Medical Coverage sufficient to cover the current and the future 10 to 20 years to come medical costs?


What Is The Current Medical Charges?

With the increase in life expectancy in 2013 to 71 for male and 77 for females, we gonna live longer. With the advancement of medical technology and continuous medical research, there might be cure for many critical illnesses that may not be cured currently. Now the medical industry is growing rapidly and so much so it has become a lucrative business. These are the costs of healthcare today and do you think these costs will stay the same or will it increase in the next few years to come:

Estimated medical expenses effective November 2015 (Source: AIA)


So now, since it is a healthcare business, money talks, if you have money, you can get the best medical care. My biggest worry when I retire, would be whether I have sufficient money to go see doctor when I really need to or will I be bankrupt paying for my health costs.

When the time comes, I am not sure whether my kidney is worth selling?? Or whether they want my kidney?? Haha… I can sell my kidney, do you want?


What About Government Hospitals?

Well, there is always another cheaper alternative, which is to go to government hospital, which heavily subsidized by the government. My dad went to the neighborhood government clinics to get his diabetic, hypertension and heart medicine. He will just collect the monthly supply of medicines without having to pay. He consumes all kinds of medicine comes in different colors, it’s like having a daily “Tic-Tac” candy. These medicines are only a controlling factor as the doctor’s advice, no cure, just take the medication for control and we will monitor his condition closely. If condition deteriorate, the docs will increase the dosage or to prescribe a stronger medicine. This is how the government hospital work.

If condition deteriorate till to a serious stage where the clinic is not able to handle, they will then refer you to the government hospital of your choice. Then since you are a new patient in the government hospital, they will do another thorough check again. So if it is blood test… they don’t really care if you already have the most recent blood test results performed yesterday, you still need to do another blood test for checking purposes under the hospital care. Then since the queue is very long, you have to wait for another 1 week in order to get the appointment date to take the blood test. Thereafter, you will have to wait for another call for the appointment to see the doctor. Until you are an emergency state, you will have to wait and wait and wait. So I would think by time we can see the doctor, would be in 1-2 months time.

Long queue in government hospitals

How Important Is The Medical Insurance?

Do you think it’s important to have medical insurance to cover your medical costs? Some people that I talk to, mentioned that “If I’m sick, then I’ll wait at my death bed and hope to die lor.” The problem does not just end there, instead it’s the beginning of a whole new trail of events and issues. When you are sick, have you thought of the people around you? Who will bring you to see the doctor for the first time, and for the continuous periodic follow up? You are fortunate if you have a fortune to cover for the medical bills. Have you thought that because you have no medical coverage, no medical insurance, no savings fund, who will be paying for your bills? Not only your medical bills, but also your nursing care expenses, your special prepared food, your medication needs and your everyday living? You will be very fortunate if you have your children to take care of you but what if your children is also struggling to make ends meet? What will you do then? Will you be still saying “I’ll just wait to die”? What if you still want to see your children grow up, go to school, and get married? What if you are still waiting and have yet to carry your first grandchild?

Would you prefer to ask for donation or to get the insurance company to pay for all your medical needs?

Be responsible for yourself and your medical coverage. Don’t let the medical costs make you a bankrupt!! Invest in the right protection plans. Congratulations to everyone that already has a medical coverage. But do a review again to see if your medical coverage is sufficient to cover the current medical costs! For example, if you have bought your policies 10 years ago, RM100k annual limit with RM300K lifetime limit might be the best and it’s sufficient to cover the medical costs 10 years ago.

Now that we are in the information era and due to the advancement of the medical technology, the cost of one time surgery for cancer and hospitalization can easily costs about RM200K, which we have yet to include the outpatient cancer chemo and radio therapy which may costs about RM35K. The old medical card has served it purpose to cover the medical charges for any claims for the past 10 years.


Upgrade Medical Coverage to RM1.75 MIL Every Year Till 100 Years Old

There is currently a new plan created to cover the current medical costs with high annual limit ranges from RM1.1 mil to RM1.76 mil. This is a budget given to cover any hospitalization bills till the insured aged 100. Some old plans only covers till 65, 70 or 80. As the mortality rates increased, the insurance companies see it a need to increase the coverage age to 100 too. With this new medical coverage, there is unlimited lifetime limit. In other words, a maximum of RM1.76 mil is your medical budget till you are 100 years old.

At the same time, we have also introduced a high limit outpatient kidney dialysis and cancer treatment which ranges from RM750K to 1.95 mil per lifetime in addition to the annual limit.

Another important point is that we don’t practice co-insurance. For co-insurance, if there is any claims for the medical bills of RM1.76 mil, you will have to pay at least 10% which approximates RM176K. It will definitely be a sum to pay when the medical bill is high. With this new plan, you can be rest assured that the whole RM1.76 mil medical bill under reasonable circumstances would be fully paid by the insurance company.


Contact Us for more details


Read more about related issues

Non Moving Cost vs Zero Moving Cost

Non Moving Cost vs Zero Moving Cost

Housing loan zero moving costWhat is the difference between Non-Moving Cost and Zero Moving Cost?

You will come across these words when you look for housing loans and comparing between the financial institutions on the best rate in town, and deciding which loan to take. Even when you are looking to refinance your house, I believe you will be familiar with these words.

Sometimes, I wonder why the financial institutions must use these financial jargon to confused everyone. Let me enlighten you with the definition and these words.


Moving Cost – Housing Loan

Before we talk about non moving cost, let’s define the moving cost first. Moving cost in housing loan term is the cost of obtaining the loan for new property purchase or the cost of refinancing the house. In layman terms, it’s the expenses that you need to pay out of pocket in addition to getting the housing loan which is in addition to the property’s purchase price.

What does the moving cost consists of?

1) Sales and Purchase Agreement

First RM150k: 1%
Subsequent up to RM1 mil: 0.7%
Subsequent up to RM3 mil: 0.6%
Subsequent up to RM5 mil: 0.5%
Subsequent up to RM7.5 mil: 0.4%


2) Stamp Duty for Sales and Purchase Agreement

First RM100k: 1%
Subsequent up to RM500k: 2%
Subsequent onwards: 3%


3) Loan Agreement (Legal fees)

First RM150k: 1%
Subsequent up to RM1 mil: 0.7%
Subsequent up to RM3 mil: 0.6%
Subsequent up to RM5 mil: 0.5%
Subsequent up to RM7.5 mil: 0.4%


4) Stamp Duty for Loan Agreement

0.5% of the loan amount


5) Valuation Fee (usually for refinancing only)

For First RM100K =0.25%
Subsequent up to RM2 mil = 0.2%
Subsequent up to RM7 mil = 0.167%
Subsequent up to RM15 mil = 0.125%
Subsequent up to RM50 mil = 0.10%
Subsequent up to RM200 mil = 0.067%
Subsequent up to RM500 mil = 0.05%
Subsequent more than RM500 mil = 0.04%

Minimum Fee : Subjected to the above rates or minimum of RM 400 per property


Non Moving Cost – Housing Loan

Buyer absorb all the moving cost of the housing loan processing.

So in essence, non moving cost package for housing loan means the housing loan applicant requires to pay all the above Moving Costs such as S&P agreement, stamp duty, legal fees and valuation fees. An estimated total amount of the non-moving cost is around 2% of the purchase price. So, when you purchase a house, do remember that you would have to reserve an additional 2% of the purchase price for all the subsequent purchase costs in addition to the deposit and the down payment for the unit even before you reserve the price for renovation or furnishing your property.


Zero Moving Cost – Housing Loan

Financial Institution absorbs all the moving cost of the housing loan processing.

On the other hand, zero moving cost is hassle free for the buyer. All the moving costs is covered by the bank or financial institutions. However, please note that these costs are then included as part of the loan amount. Good news is that you only need to reserve the deposit and the down payment of the property purchased or refinancing. You can have more cash flow for renovation or furnishing your beautiful home.


Which package to choose – Non Moving Cost or Zero Moving Cost?

If you have extra cash, suggest to choose the non moving cost because the effective cost of the property is lower on a long run. Sometimes, for new purchase, the developer absorbs the S&P Agreement (SPA) and stamp duty. So you will need to pay for the loan agreement legal fees only.

If you tight with cashflow, suggest to take up the zero moving cost. Less capital outlay, pay in instalment. Better for investment holding properties, minimize the cash outflow.

AIA also offers fixed rate housing loan with non moving costs package and zero moving costs package which you can meet your needs.


Other related materials

How to choose the best housing loan?

How would CCRIS and CTOS affect my loan eligibility?

Are you overpaying your loan instalments?

How to consolidate all your loans into one loan?


How Does CCRIS And CTOS Report Affect My Housing Loan Application

How Does CCRIS And CTOS Report Affect My Housing Loan Application

Malaysia credit historyBased on Bank Negara Malaysia Annual Report 2014 (March 12, 2015), the ratio of the Malaysian Household Debt to Gross Domestic Product (GDP) has increased to an alarming rate of 87.9% in 2014 as compared to 86.7% in 2013.  In other words, for every RM1,000 earned, RM879 is used to servicing oustanding loans and the balance of RM121 is the disposal income for the family’s needs. This is definitely not a healthy debt as servicing the loan at around 88% is above the capability of any family.

In financial terms, this means that the average Debt Servicing Ratio (DSR) for each family in Malaysia is about 88%. Due to this fact, having a record in CCRIS is quite common even for high earning individuals. If you think paying the car loan or housing loan late even for a day is alright, you have to rethink it again. Because your one day or 30 days late may result in a record in the CCRIS report. CTOS on the other hand, records more severe cases which includes bankruptcy status. Both CCRIS and CTOS reports are crucial reference points for financial institutions before they extend any loan to you.

Before we continue any further, you may want to know what are these report all about and how it can impact your future loan application.


What Is CCRIS Report?

Central Credit Reference Information System (CCRIS) Report is a report that shows the credit standings of an individual. It will have a listing of all the current outstanding loans with all the Malaysian financial institutions and the record of the number of months of late payments. CCRIS is managed by the Credit Bureau under Bank Negara Malaysia. Beware that now outstanding PTPTN loan will also be reflected in the CCRIS report. CCRIS report displays your payment schedules for 12 months record.

This CCRIS report can be easily accessible by using your Mykad at the kiosk in Bank Negara Malaysia (BNM). Other ways to obtain your CCRIS report, refer to the credit bureau website


What Is CTOS Report?

CTOS report is from CTOS Data Systems Sdn Bhd, which is a Credit Reporting Agency that keeps records and information on bankruptcy status, legal proceedings and even summons for individuals and business entities in Malaysia. The CTOS report has all the information of the legal proceedings and bankruptcy information which includes, court file number, filing location, date of notice/ court orders, under individual’s name or company’s name, the suit amount, identity card number or company’s registered number and the date mentioned in court proceedings. CTOS report is a detailed credit history of your 12 months records. Similar to CCRIS report, CTOS report is also a compulsory reference point for the financial institutions/ bank reviews before they extend any loan.

This CTOS report is available and can be downloaded at CTOS website

How Does CCRIS And CTOS Report Affect My Housing Loan Application?

As instruction from Bank Negara Malaysia, both reports are compulsory checks by the financial institutions and banks before they can render any loan to the borrower. Hence, a bad record (late payment records) in CCRIS and any records in CTOS – which is for the period of 12 months would reduce the eligibility of the loan and very high possibility that the loan to be rejected. As the debt ratio is about 88%, in order to reduce the non-performing loans, the banks are constantly tightening the loan approval. Hence, more substandard cases to be rejected.


How To Obtain My CCRIS And CTOS Reports?

CCRIS report can be printed by using your Mykad at the kiosk in Bank Negara Malaysia (BNM). Other ways to obtain your CCRIS report, refer to the credit bureau website

CTOS report is available and can be downloaded at CTOS website


The Late Payment In CCRIS Is Because My Salary Is Credited After The Loan Payment Date

Sometimes the salary is credited after the loan payment date, hence the late payments usually settled within the month. However, be it 1 day, 5 days, or even 30 days, the bank will still treat it as late payment. In addition, the banks will definitely charge you interest on the late payments computed by the number of days late. Furthermore, the late payment will also be reflected in the CCRIS report. Once it is in the CCRIS report, it will be reflected in your CCRIS credit standing report for 12 months as the report is automatically printed for minimum 12 months period. This may then impact your future borrowing eligibility.

Even when it is not your fault that resulted in late payments, your late records will still be recorded in CCRIS. Check out how my friend was charged RM10K from the local financial institutions without him knowing and without informing him until it accumulated to RM10K.

Our suggestion is always to pay the loan instalment payments at least one month in advance, so that no matter when your salary is credited, you would not have the late payment issues.

AIA has the flexibility to pay extra the instalment payments as advance without notice and without penalty. If there are extra payments received either on an adhoc basis or periodically, the payment would be directly netted off against the principal amount immediately, reducing the loan to eventually savings on the interest repayments. In the event there is no payment or late payment of the loan instalments, AIA would then take into consideration the advance payments made on the housing loan and not charge late interest payments on the loan. In addition, you have 7 days grace period to pay the loan installments without late payment penalty charges. This is only applicable with AIA mortgage loan. Call us at +6012-2128008 (Rose Chin) to know more details about our loan package.


What Does A Clean Report Means? Is It Good Or Bad?

Clean report means no late payment records in CCRIS for the past 12 months and no records in CTOS. Usually when you are prompt in your payments and no legal suit proceedings, your loan can be easily approved even within 3 days after the receipt of the application form. Usually the loan process would require about 7 working days for approval.

However, too clean report (No Records At All) is also not advisable as well. Meaning if you have not taken any loans before and you have not subscribed to any credit cards before, and suddenly, you want to get a housing loan from a bank; the financial institution may not be too comfortable with the loan approval. To the banks, you have no credit history in Malaysia and they are not able to access your loan repayments patterns. Hence, they might lower the margin of the loan. This is true and applicable more for Malaysian working in foreign countries and getting your first loan in Malaysia.



After going through the definition and the introduction of both the credit history reports, I believe you have a better understanding of your own financial status. Hence, you could arrange to clean up your records first by paying promptly every month without fail; before applying for any future loan so that the chances of your loan approval is higher. A lot of people think that it’s ok to leave the CCRIS report as it is and CTOS report as it is. This is only applicable when you do not require to obtain any loans in the near future. However, when things go bad, when economy is not doing very good, and business is slightly affected, then it’s a bit too late, as you may not have sufficient funds to even sustain the business, what more to repay the debts on time.


Other related posts that you may like:

3 Ways to Overcome Insufficient EPF To Retire

3 Ways to Overcome Insufficient EPF To Retire


It is very alarming if the National Newspaper published that a lot of Malaysians are “too poor to retire”. It is reported that A LOT OF Malaysians are retiring with less than RM50K in their EPF account. Well, honestly speaking, living in today’s currency and today’s current situation, with RM50K annual income is just enough to cover the everyday expenses and to service loans which includes the housing loan, car loans, tax payments and maybe some credit card installment payments.


Even when we are working full time and earning income every month, the amount is just enough to cover the expenses, so consider how are we going to survive for the next 20 years assuming the average mortality rate is about 75 years. RM50K is gonna last for 20 years or for 1 year? Note that after retirement, there is no more monthly fixed income in the bank.


Hence, it is very important to have an early start to save while you are still in your productive years, which while you are still working and earning income. There are 3 effective ways to overcome the issue of insufficient EPF to retire comfortably.


1) Save consistently in the bank

You can save consistently about 10% in the bank that can easily earn about 3%-4% interest rate. Note that if this is for retirement usage, you are not suppose to withdraw the cash until you are at your retirement age. So when you withdraw some cash from your retirement account, this will reduce your funds for retirement eventually. Less money to retire means less comfortable at retirement.


2) Buy an endownment insurance policy

If you are looking for guaranteed cash coupons every year and also high returns within 25-30 years, we have a plan for you. An endownment insurance policy is where you can have minimum insurance coverage but with high returns with a short payment term of 10-20 years, which is your prime time working years. In other words, you can pay now and enjoy later. You can also use the yearly coupon for your traveling pleasure.


3) Private Retirement Scheme (PRS)

Get yourself the Private Retirement Scheme (PRS), which is approved by the government to supplement your EPF, fully governed by the Bank Negara Malaysia and Securities Commission. So be rest assured that you as an investor’s rights are constantly and fully protected by all the Malaysian regulatory finance laws. As this is private in nature, you have full transparency on how your funds are being invested. You can choose to invest in conservative fund, moderate fund and growth fund. You can also choose to invest in the Islamic fund too where the investments are only made in Shariah- compliant stocks, sukuk and Islamic money market instruments. The purpose of PRS is for RETIREMENT. Hence, it is encouraged to invest in PRS for the purpose of retrieving the funds after retirement age – 55. As part of government’s encouragement to promote PRS, RM3,000 tax relief is given for the same amount or more investments in PRS within the year of assessment. In addition, if you are a taxpayer and less than 30 years old, government will input a one time RM500 incentive into your PRS account when you open your PRS account with minimum of RM1,000 investment amount.