PTPTN : Conventional 3% Vs Ujrah 1%

PTPTN is currently offering conversion package from conventional 3% compounding rate (reducing balance) to 1% flat rate Ujrah package. There are some inquires of whether to take the offer.

First, lets calculate how much you can save from the conversion:
Assume : Loan amount : RM20,000.
Repayment period : 5 years to 20 years. Refer to "jadual bayar balik" below.
Analysis on % of saving is based on total loan amount and total interest saving.

 

To make it simple, 1% of flat rate is equal to 1.89%(20Yr)-1.93%(5 yr) of compounding rate.

Second, what is the covenant included in the Ujrah package:

• Repayment via LHDN, inland revenue  which means you can't run away.
• You will need to inform PTPTN 3 months in adv if you are traveling oversea during the repayment period. (What a hassle!)
• Late payment charges of 1%.p.a ONLY vs 3% outstanding loan with max of 3% of your study loan.
• The clause "23. Walau apa pun yang tersebut diatas, PERBADANAN berhak pada bila-bila masa menurut budi bicara mutlaknya meminda atau menambah terma-terma atau syarat-syarat yang terkandung di dalam PERJANJIAN PEMBIAYAAN PENDIDIKAN.” Courtesy of www.cekikdarah.com

Conclusion :
In short, for the 1% of interest rate saving, you will need to comply to those new covenants. Personally, i think the reduction of 3% compounding to roughly 2% compounding rate (1% flat rate) is a worth bargain to convert, especially you are that kind of people who will bring out all your FD to the opposite bank for additional 0.2% higher FD rate.

Previously, many rather save their money in bank instead of paying PTPTN,
Bank FD gives you 3.2% while PTPTN will take away your 3%. Smart huh?

In a nutshell, its up to individual on whether you want to save 1% going through the hassle. Converting to Ujrah will discipline you to pay, unless you are still indulge in the wishful thought that the policy maker may change their mind one day and grant certain % waiver for PTPTN loan in order to haste up recovery of bad debt.

殊途同归

最近得到启发。从以前的自由企业，销售业务员，到金融业，任何行业都有一些共同点：

专家= 赢家。成为自己领域的专家，你就无所不能了。

成为专家需多少时间？
灵芝疗法/创业说明会，有人一星期就倒背如流了；
也有人一年还讲得 吞吞吐吐，上文不接下文。
银行里的产品知识终究需多少时间才学会，其实要看个人心态和观念。

复杂事情简单做，简单的事情重复做。
银行产品看是复杂，其实未必。
当你把简单的产品复杂化 ，顾客一句：这些投资太难了，不适合我。最终以失败收场。
换上另一位业务员，把产品精华一言道尽，同样的顾客，最终制造双赢。

别人也同样卖保健品，为何我选择你？
以前我总是百思不得其解，同样竞争的环境底下，一些销售员成功率超低，一些却是常胜将军。
很简单：问你自己可以为顾客增值多少？(value added)
平庸销售员只在于吹捧自己的产品有多好，自己的服务如何了得。但当竞争激烈的环境底下，就需为顾客创造额外的价值，比如保健知识，对症下药和养颜长寿的指示。
当你到访时，顾客会打开门户欢迎你入内，觉得跟你聊天很有收获。


一切始终归咎于观念与态度。

Leadership- Julie Biscuit MD in BFM

As usual, I was on the journey to work this morning and tuned into my favourite radio channel - BFM.
The breakfast grill of the day is interview between Noelle Lim and JULIE biscuit MD- Mr Sai Chin Hock.
The discussion is regarding the contamination of Julie biscuit series by Melamine which happened in year 2009. (check http://www.asiaone.com/Health/Eat+Right/Story/A1Story20081024-96130.html for detail)

When Noelle asked about the contamination of Julie biscuit, here the answer of Mr Sai Chin Hock. ( Re construed)

I had been running Perfect Food Manufacturing for 26 years. This was the biggest crisis of my life. I was attending meeting oversea when my GM told me that the Singapore Agri-Food and Veterinary Authority had ban Julie biscuit in Oct2008.

I flew back immediately, taking a bath before returning to my factory at Alor Gajah. Before I even reach my office, my GM interrupted me at the door shaking his head and cried :" Julie is over, it is now all gone!" 

Sai then said boldly : " I am now back.You step aside and let me handle the situation." .

Later, Sai meets Health ministry and discuss on the matter, and got the green light from MOH to continue marketing Julie biscuit in Malaysia, meet with the authority in Sg, top receiving salary for one year, at the same time paying bonuses to all staff despite stalled manufacturing line, pay the supplier to abolish the perception of defaulting payment and a whole stretch of action plan to revive the shaking company.

I will not elaborate on the whole story.

The essence here is : everyone will be unprepared, even the 2nd hand man is panicky.
Mr Sai shows his leadership when he come back and assure everyone that he will and can solve the crisis.

Everyone trusts and willing to follow his direction.

Leadership- 

when you imagine you are the highest authority, your will take up the challenge and overcome it,

You are full of confidence, you are out there to solve it and nothing can stop you from achieving what you want.

When you had this mindset, everyone will follow.