Lower EPF contribution from 11% to 8% for 2 years from Jan 2009

Following an announcement made by Deputy Prime Minister and Finance Minister YAB Datuk Seri Najib Tun Abdul Razak during the winding up speech for the Ministry of Finance on the 2009 Budget on Tuesday 4 November 2008, the Employees Provident Fund (EPF, a.k.a. Kumpulan Wang Simpanan Pekerja, KWSP) has now made an official statement on the execution of this decision.

The reduction of the employees’ contribution to EPF from 11 % down to 8 % will be made automatically, effective from January 2009 until December 2010 wage. The employers' 12% contribution remains the same.

This means that if you don't explicitly inform EPF to maintain your 11% contribution as before, by January 2009 onwards, your contribution will be automatically reduced to 8% for the next 2 years. If you intend to maintain your 11% contribution, or any portion other than 8%, you have to inform your employer, as well as submit the "Form KWSP 17A (AHL) - Khas" to EPF office.

As at 31 December 2007, the total membership of EPF stood at 11.69 million. A total contributions amounting to RM28.93 billion were made during year 2007. Assuming the figure does not change too much in 2009 and 2010, a 3% reduction will mean (RM28.93 billion/23% x 3% x 2 years) = RM7.55 billion to be freed up for spending in the economy, in the optimistic case that all EPF contributors opt for the rate cut and don't maintain the 11% contribution rate by submitting the "Form KWSP 17A (AHL) - Khas".

This is not a high figure to stimulate the national economy, but it does facilitate a similar effect of lowering the bank interest rate, which is happening in many other nations right now. This also hints that the Malaysian government is trying hard to avoid an interest rate cut, which would probably further weakening the forex exchange rate of Malaysian Ringgit.

As an employee, this change in contribution rate means that if your monthly salary is RM2k, you will have an additional RM60 monthly disposible income; if your monthly salary is RM5k, then your figure will be RM150; and if your monthly salary is RM10k, it will be RM300.

Should you opt for the lower contribution rate, or should you submit the "Form KWSP 17A (AHL) - Khas" and maintain your normal 11% contributions? One thing to consider is that since the economic climate is not so favourable this year, we won't expect a good dividend payout by EPF to be announced.

I would say that it is not a bad idea to reduce your EPF contributions, and spend your money wisely to make more value from it. For example, you can use it for personal development (education, books, workshops, ...), investments, insurance, etc. just to name a few. However, if you think that you are not a wise person in money spending, you might want to opt for maintaining your 11% contributions to EPF as a form of "force saving".

What do you think?

Click here to download the "Form KWSP 17A (AHL) - Khas" for individual employee.

Click here to download the "Form KWSP 17AA (AHL) Khas" for employers who wish to apply on behalf of more than two employees.

Watch Honda ASIMO live in road tours

Honda ASIMO (アシモ), named after "Advanced Step in Innovative Mobility", is an intelligent multifunctional robot of 130cm tall with 54kg weight, made of magnesium alloy covered with plastic resin.

It is an innovative result from 22 years of R&D in Honda, showcasing their determination and belief in the Power of Dreams.

Today, ASIMO can run up to 6km/h and in circular pattern, walk at various speed up to 2.7km/h, climb stairs, and is able to recognise distance, position and details of people with Honda's IC Tag.

ASIMO can also perform the task of a receptionist, information guide or carry out delivery service using a tray or cart. It can also act in sync with people, for example, walking with you while holding your hands.

Eager to watch ASIMO in action? You can meet with him in the upcoming road tours as follow:

• 14-16 Nov 2008 - New Wing, 1 Utama Shopping Centre, Selangor.
• 20-23 Nov 2008 - City Square Shopping Centre, Johor Bahru.
• 27-30 Nov 2008 - Queensbay Mall, Penang.

There will be exciting games, ASIMO prizes and limited edition of ASIMO goodies available during the road tours.

Click here to learn more about the wonders of ASIMO.

Pairing Sony Ericsson P1i with HBH-PV710 bluetooth headset

Sony Ericsson HBH-PV710 is a mid-range bluetooth headset with 3 buttons, one for call handling, another 2 for sound volume control. It does not have fancy features such as automatic sound adjustment, background noise reduction, etc. However, for a retail price of only RM128, it is still a good pick and value for money.

It can share the same charger with my Sony Ericsson P1i handphone, as well as using the CDS-65 Desk Stand that comes along with P1i as its charger. Of course, it also comes with its own charger, which can also be used by P1i.

The printed user guide of HBH-PV710 is written in 4 languages, which the layout is quite inconvenient for the reader. The flow of document is also quite confusing. Therefore, I decided to reproduce the guide here in a more readable way, for my future reference and also for other HBH bluetooth headset users' reference. Here is it:

After purchase, before usage:

• You need to charge up the bluetooth headset for 8 hours before usage.
• In future, when you see the headset's red light is flashing, it is time for it to recharge.

First time usage:

• Turn on the bluetooth function in your handphone.
• Make sure the bluetooth of your handphone is visible to other devices.
  
  
• Press and hold the "call handling" button of your bluetooth headset for 3-5 seconds, until you see the indicator light flashes red and green.
• If the headset only flashes green, press and hold both the "volume control" buttons of your bluetooth headset for 3-5 seconds, until you see the indicator light flashes red and green.
• Your handphone should now find the bluetooth headset, and lists it in its bluetooth device listing. Tap on it and connect to it. When passcode is asked, key in "0000".
• The headset beeps and the indicator light flashes green when the pairing is successful. It is ready to use now.
• To turn off the headset after use, press and hold the "call handling" button of your bluetooth headset for 3-5 seconds, until the flashing indicator light turns off.
  

Subsequent usage:

• Turn on the bluetooth function in your handphone.
• Turn on the bluetooth headset.
• The pairing should occur automatically. Here are the screens of P1i before and after the pairing. Note that the bluetooth icon in the taskbar will change to headset icon when the headset is in use.

        Before pairing                            After pairing


Using the headset:

• Answer incoming call - press the "call handling" button once.
• Reject incoming call - press and hold the "call handling" button for about 2 seconds.
• Making call - use your handphone to dial the number and talk with your headset.
• Using voice command to dial, redial, answer and reject calls - record and enable voice commands in your phone. Say the "magic words" to your headset.
• Transfer audio between headset and handphone - selection can be made on the phone.