Meshio.com

Another hike on cigarette tax. I guess sales for Gudang Garam is going to take a significant hike too!

“This huge tax hike, which is eight times the level of inflation, will no doubt further encourage consumers to down-trade to illegal and exceptionally low-priced cigarettes.”

An analyst at TA Securities said: “Such increases usually happen during the budget presentation. I didn’t expect it to be in-between budgets.”

The Star Online

A different form of insiders…

Allegations that Hextar Holdings Bhd inflated its revenue may have led to the pesticide maker’s decision to scrap its listing, a source said. The company was also involved in the sale of illegal pesticides, according to a letter that was sent to the Securities Commission (SC), the source said. The anonymous letter tipped off SC officials who called Hextar officials for a meeting a few weeks ago.

The company then scrapped its listing on June 20, a day before the shares were due to be traded. “It showed step by step how they did it. It was so detailed that it was definitely an insider blowing the whistle,” said the source who could not be identified due to company policy. Hextar chairman and managing director Datuk Ong Soon Ho said he is unaware of such a letter.

Business Times

In an unrelated news about personal finance, one of the world’s largest financial services company is paying USD 105.3 million for their latest branding campaign.

Seattle Post-Intelligencer on the Naming-rights Agreement…

The financial services company reached a 20-year naming-rights agreement, and although terms weren’t disclosed, Prudential will reportedly pay $105.3 million to put its name on the new building, which is set to open in time for the 2007-08 season.

That’s like a whopping USD 5 millon a year. There has got to be a better way to spend those marketing dollars…

I guess EPF is quite serious about the definition of the term “maturity”.

KWSP on the penalties of fraudulent withdrawal…

One member was jailed and fined RM2,000 while one member was fined RM3,000 or 2 months imprisonment. Two of them were slapped with a RM2,000 fine or a 2-month jail term. The fifth member was fined RM2,000 or a 1-month jail term. All five paid their fines.

For the record, those found guilty under the EPF Act 1991 are liable to a maximum jail sentence of three years, or a maximum fine of RM10,000, or both.

“It is most unfortunate that some members resort to fraudulent means to withdraw their savings. It is even sadder when some of them are willing to pay part of their own hard-earned savings to unscrupulous third parties. Members should realise that they are not cheating the EPF of any money; they are only cheating themselves,” added Puan Rusma.

Find out more about what’s coming up in the 2006 Financial Expo:

http://www.fpam.org.my/finex06/

There should be some interesting workshops for the public to gain more information about where the personal finance industry is heading.

If you are serious about managing your money, make it a point to visit the Expo at the Mid Valley Convention Centre…and of course, you can do your shopping afterwards.

Total respect for the loan-shark industry to come up with such ingenious marketing strategy.

Actually, I really don’t think anyone would be so easily scammed by such hilarious wordplay of their actual counterparts…but I believe it’s a very bad idea to stereotype all consumers.

The ingenious Loan Shark Industry with their new marketing plan…

They have resorted to publishing and distributing pamphlets with names such as Cilibank (for Citibank), Business Commerce (Bumiputra Commerce) and Poblic Bank (Public Bank) to woo clients.

These credit companies offer a variety of credit packages for individuals, civil servants, businessmen and manufacturers.

Almost all of them do not have any permanent addresses. They only provide pre-paid mobile numbers.

The companies make the same promise — loan approvals within an hour.

When the New Straits Times called “Cilibank” and spoke to one Jackson for a RM10,000 loan, he immediately requested a meeting to discuss the credit terms.