KUALA LUMPUR, March 16 (Bernama) -- The Employees Provident Fund (EPF) has declared a dividend of 4.50 percent for 2008, lower than the 5.8 percent in 2007.
The lower dividend rate is due to the increase in investment provisioning resulting from the sharp decline in global equity prices brought about by the worldwide financial crisis, the pension fund said in a statement here Monday.
Despite the financial meltdown, the EPF recorded the highest ever earnings of RM20 billion in gross income for 2008, an increase of 9.36 percent over the previous year's gross income of RM18.29 billion.
"While the year 2008 was challenging due to the unprecedented global financial crisis that has impacted economies worldwide, EPF's investment portfolio for the year performed better at the gross income level compared to 2007. However, due to the sharp decline in the equity markets, a large provision had to be made resulting in a marked reduction in net income," its chairman Tan Sri Samsudin Osman said.
Net income for the year was recorded at RM14.26 billion after deducting allowances for diminution in value of equities and doubtful debts, dividends for withdrawals, investment expenses, operational expenses, and death and incapacitation benefit payments.
Equities remained as one of the major contributors to the EPF's returns in 2008, representing 34.82 percent of the EPF's total gross investment income.
The EPF earned RM6.67 billion from equities which was the second largest contributor to income in 2008 compared to RM5.37 billion in 2007.
"Up until September last year, the EPF was doing well in equities. However, following the effect of the global financial meltdown, our performance in equity investments recorded a drop of less than 20 per cent, which impacted our dividend payout."
"This, however, compares better with that of the Kuala Lumpur Composite Index (KLCI) which was down approximately 40 percent from end of December 2007 to December 2008," said Samsudin.
As a result of the sharp fall in global equity prices and following a conservative provisioning policy in accordance with accounting best practices, the EPF made allowances of RM4.69 billion for diminution in value of both overseas and local equities, compared to only RM0.52 billion in 2007.
Out of the 2008 provision, RM3.20 billion was allocated for overseas equities.
"The fundamentals of the companies we have invested in remain strong and we are confident that this provision will be written back once recovery takes place," Samsudin said.
Loans and bonds was the biggest contributor to gross income in 2008, recording a return of RM6.78 billion compared to RM5.91 billion in the previous year, while Malaysian Government Securities, the third biggest income contributor, brought in RM4.94 billion compared to RM4.88 billion in 2007.
As at Dec 31, 2008, the EPF's total investment funds grew by RM28.99 billion to RM342.00 billion compared to RM313.01 billion a year ago.
For 2008, the EPF required RM3.18 billion to pay a one per cent dividend compared to only RM2.89 billion in 2007, due to the larger membership base.
This means that the EPF needed to earn 9.71 per cent more in order to declare a one percent dividend in 2008 compared to the previous year.
Dividends will be credited to members' accounts on March 23, 2009.
"We are bracing ourselves for a tough year ahead as the effects of the global financial crisis continue to be felt. However, we believe that in every crisis, there is opportunity to be seized. The key is to remain vigilant and continue delivering results for the benefit of our members through our prudent investment strategy," Samsudin said.
-- BERNAMA
Monday, March 16, 2009
10 Steps to Growing Your Business and Profits in a Recession - By Mark Tobiassen
Ever wonder why some businesses seem untouched by the current economic quagmire? In fact, I bet you know of a few business owners who have consistent bottom-line improvement, regardless of the market. By following the 10 step formula outlined here, you can begin outperforming your competition immediately.
Note: the first step is applicable to all; however, the other steps may affect individual businesses differently.
Step 1: Mindset
There are dozens, if not hundreds, of books and audio CDs on the subject of the importance of keeping your attitude and mindset positive. The big questions are, first, ‘why should I do this?’ and second, ‘how?’ First, let’s discuss the ‘why’.
How many people do you know who have an attitude that seems negative, no matter what day it is or where you meet them?
This type of personality can drain the energy of an entire room. Negative thoughts are like a virus; they move in, replicate and attempt to take over healthy host. Positive thoughts are the antidote and spread just as quickly. Choose to be a cure not a cause!
The question is, how can we keep a great attitude all the time? Frankly, we can’t. We all have upsetting or distracting events occur throughout our day.
The trick is how quickly we choose to catch ourselves and turn our attitudes around. And as for the ‘how'? Keeping a positive attitude is a choice. Positive people read different books, they listen to different things in their car while driving, they hang out with other positive people, they hire only positive people in their company.
Step 2: Planning
Ask yourself this question: is my five-year business plan strong enough to support my family, even in the face of disaster? Is the plan accurate, and will it provide my family the lifestyle we have always dreamed of? Do five years seem too far off to plan? Start with a year.
You can be assured that all great business people have consistently done a good job of planning out at least one year in detail and five as a skeleton. In addition to having a solid 1-Year Plan in place, they take the next logical step of breaking that plan down into four manageable chunks of 90 Day Plans. But wait, even 90 Day Plans are not enough! You must then drill down even further into Weekly Action Plans.
Just imagine how powerful it would be for your company if every employee had a clear understanding of the most important 4 or 5 activities they must deliver on each week!
Step 3: Financial Mastery
In my experience, 90% of business owners do not understand the most important numbers of their business, the real bottom line. What could be more imperative than knowing the margins your company makes on every product or service you deliver? Do you know whether you are currently spending above or within your means?
In these tough times, it might be smart to look into re-negotiating the lease on your building, or to ask your credit card company to lower the interest rate on any balance you carry. Consider strategically taking advantage of early payment discounts to some of your vendors.
And lastly, it is always a good practice to have a personal budget for your household. But in this area, remember to never make any payment before it is actually due unless early payment discounts are to your long-term advantage.
Step 4: Manage Your Cash Flow
A company may seem profitable on paper but also suffer from low cash flow. When looking at your numbers, keep a few things in mind: It is simply smart practice to keep your inventory clean and lean, as low as it can be without sacrificing effective delivery to your customers.
Take a close look at your payment terms for suppliers. Are your overtime dollars necessary, or at least under control? Are you taking advantage of flexible work schedules to possibly reduce some fixed costs for salaries?
Step 5: Marketing
There are two targets for your marketing efforts: one is focused on getting new leads or prospects, and the other on retention of your existing clients. Far too many business owners focus 98% of their time and resources on pulling in new customers.
Considering the fact that it’s six times more expensive to get new clients, shouldn’t we spend considerable time and effort on keeping the ones who already like us, trust us, and buy from us?
The answer is a resounding yes! When you are ready to pursue new business, make sure you have a great system in place to track every lead that comes into your company.
Your marketing budget could be reduced, or at least better focused, when you have the data to know which marketing strategies are successfully feeding new business your way.
Step 6: Sales
The bottom line here is simple: train, train, train. Make sure you have the most talented sales team in New Mexico, and that your staff has performance goals and accurate information about the current performance of your business. Your sales team must also be RESULTS oriented.
It is imperative that every sales person is a strong contributor, or it may be time to start recruiting. After all, there is a lot of great talent looking for work these days.
Step 7: Fundamentals
Now more than ever, you must have the right team in place. You and every member of your team must be effective at making good time management choices. To this end, it could be cost-effective to provide your staff with a course in time management.
And remember, an organization is always a reflection of its leader. If you are not very good at preventing distractions from taking you off target, your company won’t be either. Lastly, now more than ever, your customer service must be EXTRAORDINARY.
Step 8: Continuous Learning
With so many professionals in the U.S. required by regulation to continuously upgrade their level of professional education, shouldn’t you do so as well? Now is also a great time to expand the cross-training of your staff.
The top line of your personal knowledge is also the top line of your company’s knowledge. Unfortunately, most leaders -- in fact, most people -- spend more time designing their yearly vacation plan than they do designing their personal development plan.
The local library is a great resource for this, so go and check out some audio CDs in an area of business you want to master.
Step 9: Accountability
Are you, as the CEO, ready to be held accountable? Most entrepreneurs love the freedom of not having a boss, but many lack the self discipline to stay focused without someone higher up to report to. A plan designed to drive financial performance is a necessary tool to make your business thrive and grow.
Every member of your team should understand the two most important goals for your company during any given fiscal period. You must have in place a Performance Appraisal system which emphasizes accountability and reinforces the positive outcomes you expect. You also need a well communicated system of dealing with poor performance, plus the discipline to redirect staff toward those behaviors required for top performance.
Step 10: Professional Advisors
Just imagine the excitement and satisfaction of building a business that runs without you!
This final step is critical.
Make sure you have surrounded yourself with talented advisors: a good CPA, a wonderful attorney and a financial advisor that meets with you at least quarterly to audit your investments. Last but not least, consider the value of a business consultant or coach to help expedite your journey toward financial and personal freedom.
Your path to success can be as easy as counting to 10. For the next 30- days, before making business decisions mentally journey through these steps and see how your pan measures up. After the month is over, you will have the steps memorized and a set of habits established that will lead to a lifetime of better business!
Note: the first step is applicable to all; however, the other steps may affect individual businesses differently.
Step 1: Mindset
There are dozens, if not hundreds, of books and audio CDs on the subject of the importance of keeping your attitude and mindset positive. The big questions are, first, ‘why should I do this?’ and second, ‘how?’ First, let’s discuss the ‘why’.
How many people do you know who have an attitude that seems negative, no matter what day it is or where you meet them?
This type of personality can drain the energy of an entire room. Negative thoughts are like a virus; they move in, replicate and attempt to take over healthy host. Positive thoughts are the antidote and spread just as quickly. Choose to be a cure not a cause!
The question is, how can we keep a great attitude all the time? Frankly, we can’t. We all have upsetting or distracting events occur throughout our day.
The trick is how quickly we choose to catch ourselves and turn our attitudes around. And as for the ‘how'? Keeping a positive attitude is a choice. Positive people read different books, they listen to different things in their car while driving, they hang out with other positive people, they hire only positive people in their company.
Step 2: Planning
Ask yourself this question: is my five-year business plan strong enough to support my family, even in the face of disaster? Is the plan accurate, and will it provide my family the lifestyle we have always dreamed of? Do five years seem too far off to plan? Start with a year.
You can be assured that all great business people have consistently done a good job of planning out at least one year in detail and five as a skeleton. In addition to having a solid 1-Year Plan in place, they take the next logical step of breaking that plan down into four manageable chunks of 90 Day Plans. But wait, even 90 Day Plans are not enough! You must then drill down even further into Weekly Action Plans.
Just imagine how powerful it would be for your company if every employee had a clear understanding of the most important 4 or 5 activities they must deliver on each week!
Step 3: Financial Mastery
In my experience, 90% of business owners do not understand the most important numbers of their business, the real bottom line. What could be more imperative than knowing the margins your company makes on every product or service you deliver? Do you know whether you are currently spending above or within your means?
In these tough times, it might be smart to look into re-negotiating the lease on your building, or to ask your credit card company to lower the interest rate on any balance you carry. Consider strategically taking advantage of early payment discounts to some of your vendors.
And lastly, it is always a good practice to have a personal budget for your household. But in this area, remember to never make any payment before it is actually due unless early payment discounts are to your long-term advantage.
Step 4: Manage Your Cash Flow
A company may seem profitable on paper but also suffer from low cash flow. When looking at your numbers, keep a few things in mind: It is simply smart practice to keep your inventory clean and lean, as low as it can be without sacrificing effective delivery to your customers.
Take a close look at your payment terms for suppliers. Are your overtime dollars necessary, or at least under control? Are you taking advantage of flexible work schedules to possibly reduce some fixed costs for salaries?
Step 5: Marketing
There are two targets for your marketing efforts: one is focused on getting new leads or prospects, and the other on retention of your existing clients. Far too many business owners focus 98% of their time and resources on pulling in new customers.
Considering the fact that it’s six times more expensive to get new clients, shouldn’t we spend considerable time and effort on keeping the ones who already like us, trust us, and buy from us?
The answer is a resounding yes! When you are ready to pursue new business, make sure you have a great system in place to track every lead that comes into your company.
Your marketing budget could be reduced, or at least better focused, when you have the data to know which marketing strategies are successfully feeding new business your way.
Step 6: Sales
The bottom line here is simple: train, train, train. Make sure you have the most talented sales team in New Mexico, and that your staff has performance goals and accurate information about the current performance of your business. Your sales team must also be RESULTS oriented.
It is imperative that every sales person is a strong contributor, or it may be time to start recruiting. After all, there is a lot of great talent looking for work these days.
Step 7: Fundamentals
Now more than ever, you must have the right team in place. You and every member of your team must be effective at making good time management choices. To this end, it could be cost-effective to provide your staff with a course in time management.
And remember, an organization is always a reflection of its leader. If you are not very good at preventing distractions from taking you off target, your company won’t be either. Lastly, now more than ever, your customer service must be EXTRAORDINARY.
Step 8: Continuous Learning
With so many professionals in the U.S. required by regulation to continuously upgrade their level of professional education, shouldn’t you do so as well? Now is also a great time to expand the cross-training of your staff.
The top line of your personal knowledge is also the top line of your company’s knowledge. Unfortunately, most leaders -- in fact, most people -- spend more time designing their yearly vacation plan than they do designing their personal development plan.
The local library is a great resource for this, so go and check out some audio CDs in an area of business you want to master.
Step 9: Accountability
Are you, as the CEO, ready to be held accountable? Most entrepreneurs love the freedom of not having a boss, but many lack the self discipline to stay focused without someone higher up to report to. A plan designed to drive financial performance is a necessary tool to make your business thrive and grow.
Every member of your team should understand the two most important goals for your company during any given fiscal period. You must have in place a Performance Appraisal system which emphasizes accountability and reinforces the positive outcomes you expect. You also need a well communicated system of dealing with poor performance, plus the discipline to redirect staff toward those behaviors required for top performance.
Step 10: Professional Advisors
Just imagine the excitement and satisfaction of building a business that runs without you!
This final step is critical.
Make sure you have surrounded yourself with talented advisors: a good CPA, a wonderful attorney and a financial advisor that meets with you at least quarterly to audit your investments. Last but not least, consider the value of a business consultant or coach to help expedite your journey toward financial and personal freedom.
Your path to success can be as easy as counting to 10. For the next 30- days, before making business decisions mentally journey through these steps and see how your pan measures up. After the month is over, you will have the steps memorized and a set of habits established that will lead to a lifetime of better business!
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