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Mechanisms to Offset RM50 Credit Card Tax

One of the unwelcome move in Malaysia’s 2010 budget is the new RM50 tax imposed on each credit card issued to customers. The motive behind this move is said to curb the unwise speeding habit among certain customer which could sometime end up owing thousand of unsettled debt to credit card issuers.

While I agree that certain quarter has abused the credit cards for something unnecessary, but credit card has become a necessity for some such as travelers, businessman, tourist or just regular folks who frequently using it instead of bringing cash.

No one spared from this tax including those that keep the cards without using it (as backup) or one the use and pay the card prudently. Like millions of credit card holder out there, I still in the dark on the mechanism that credit card issuers will be using to impose this tax to the credit card holders or how to get the waiver.

Fortunately, TheStar has come out with very useful graphic showing the mechanism, that each credit cards issuer will use to offset the tax . If you’re currently holding more than 1 cards, it is going to be troublesome to call each credit card issuer to sort this out, and then keep track of it. Here are some of the important point you should take note.

  • Only Bank Rakyat unconditionally subsidizing the RM50 tax
  • MBF Cards does subside the RM50 tax with at least Rm300 permonth or RM3600  per year of spending.
  • between 9500 to 15000 points required to offset RM50 tax
  • RM50 Cash rebate offered by Eon Bank with at least 3 transaction in 2 months

Credit card rate

Graphics courtesy of The Star.

Admin 8 February 2010 Consumer , , , , No Comments

Budget 2010 Set To Boost Internet Broadband

Malaysia Prime Minister has unveiled the budget for the year of 2010, totaling RM189.499 billion last week. It receive mixed reaction from various level of peoples, with pros and cons being discussed .

While we left the rest of the 2010 budget for experts to discuss, it bring some good news related to internet broadband that left the consumers nothing but to cheers with it! Let’s take a look at them.

- Tax relief for broadband subscription of up to RM500 from 2010 to 2012. Simply the cream of the day. It will surely bring the new users in, and existing wired internet broadband users might spending for wireless internet broadband as the second option.

- Netbook with free broadband package for local universities student for 2 years period with payment as low as RM50 per month starting Jan 2010. Oh my… this is just what every students nowadays really wants. Notebook/netbook with internet connection so that they can hang on to the internet 24 hours a days..

- RM5,000 computer loan for civil servant once in 3 years. Not something really new, because even before this, this scheme already in place but it is limited  once in 5 years. I wonder how many civil servants really use this loan to fully buy a new computer? With RM5,000, you can get really high end machines, such as Macbook Pro or Dell Adamo.

To give you an idea what the current state of Malaysia’s internet broadband is, the penetration rate stood at just 28% . We’re behind the likes of Singapore and South Korea who has penetration rate of 88% and 97% respectively.

Back to year 1999 when we just have our first internet broadband network (Streamyx), we’re on par with South Korea and slightly better than Singapore. But since then, there are very little improvements (or stagnant) in term of speed and service over the years, and it is not surpriseing to see how far us now behind these countries.

But thanks to the competition and the entrance of the new players, 3G and WiMAX technology, the price has gone down slightly now. We have more options nowadays as compared 2-3 years back. The bandwidth is greater as well. Don’t you feel lucky now?

The timely incentive announced by government should boost the broadband usage to the new level. As such, new infrastructures are required to cater the additional users.  This is crucial because without the enhanced services, we’re nowhere to reach the target expected from this incentive.

One of the good news is, the High Speed BroadBand (HSBB) project is ready to be launched by the first quarter of 2010,  and available at Tun Dr. Ismail, Bangsar, Subang Jaya dan Shah Alam.

I’m expecting  internet service providers (ISP) such as Streamyx and Jaring, telcos such as Celcom, Maxis, Digi and Wimax providers such as P1 will tailor their offering to looks as attractive as they can in order to take advantage of this. Just my thought..

  • More notebook/netbook/dekstop plus broadband package with installment plan available on the market.
  • Aggressive marketing strategies from these companies to attract more customers. By now I believe more users will start flocking to them or have it in mind. Price war perhaps after this?

What say you?

p/s: The upcoming PC Fair will surely be crowded again with internet broadband agents.

Admin 26 October 2009 telecommunication , , 4 Comments
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