RM50 - Credit Card Tax

January 2010 has arrived and with it the implementation of the new RM50 credit card tax for each card that you own.  Banks however are launching and all out preemptive strike on its users before they start picking cancelling. Have you snipped yours yet ?

If you are like me you probably would have been given various 'offers' by the banks to make sure you continue using a particular banks credit card. Banks will probably be offering you a choice of the following:-

• Free upgrade to the next level card (eg Gold or Platinum)
• Credit limit upgrade (eg. RM8000 to RM20000 even on a normal classic card)
• 'Free' cash advance (eg Check for RM10000 under your name with tiny printed fine prints)

When you finally ask the bank if they are going to waive the RM50 they will tell you NO. As of the time of writing this article, most banks have given official notices that they are not going to waive the RM50 for their customers. Instead they have different mechanisms to offset that from their points.

Most will offset the credit card tax with an exchange of 10000 points and some will provide them as a from of rebate with a minimum spending per month. Check out the table created by The Star for a more comprehensive list.

As of today I've cancelled most of my cards even my company cards and retained just two. Happy Snipping!

Fuel Subsidy

The government is at it again. More news about the new fuel subsidy scheme by our beloved government is on the The Star. The minister had this to say......

For Malaysians, the price of petrol will also be based on engine capacity, which means that not all would be entitled to subsidised fuel, he added.

“Not all Malaysians will get the fuel subsidy, which should by right be given to those earning less,” he said.

Ismail said those eligible for the fuel subsidy would be able to buy fuel based on the current prices while those who are not eligible for it, will have to pay the market price.

“For RON95 petrol, the Goverment’s subsidy is 30sen per litre now. The current price of RON95 petrol is RM1.80 compared to the actual price, which is RM2.10.

“So, Malaysians who are not eligible for the subsidy and also non-citizens will have to pay RM2.10 or more,” he added.

Why am i not surprised that they will based the subsidy upon the size of the engine ? In their minds only the so called rich can buy big capacity engine vehicles. Again it is very likely 2nd hand vehicle owners that happen to buy big capacity engines will have to pay the price.

Thank you so much. Keep your fingers crossed until May 1st.

Dell Bukit Minyak sheds 700

Finally the cat is out of the bag. The Star reported Dell gave VSS to 700 staff of various positions. Updates to the retrenchment list will follow suit later.

GEORGE TOWN: Dell Malaysia is letting some 700 workers go via a voluntary separation scheme (VSS) exercise.

The 700 include those in the operator, supervisory and managerial positions at its Bukit Minyak plant here.

Dell corporate communication senior manager Jasmine Begum said the VSS scheme was being implemented because Dell was transferring the division that manufactured notebooks for Latin America, Canada and US markets to the group’s global manufacturing network.

“This means that the Bukit Minyak plant will only manufacture notebooks, desktops and servers for the South Asian and Australian markets,” she said.

The move would enable Dell Malaysia to be more cost-effective in its operations, reduce delivery time and enhance the quality of the products manufactured, Begum said.

“Dell Malaysia will continue to hire for the procuring, financing, and supply chain planning departments,” she said.

Jasmine said the affected workers would leave the company via VSS packages from January to June.

“They will be given competitive VSS packages. We will also provide them with career counselling and outplacement services,” she added.

Dell Malaysia, which has been operating here since 1995, currently has some 4,500 workers, most of them employed at the Bukit Minyak plant, and the rest at the Dell Cyberjaya Centre.

After the VSS implementation, the workforce in Malaysia will be scaled down to about 3,800. In March, Dell Malaysia offered VSS packages to about 5% of its employees - The Star