CANSLIM is an investment strategy popularized by William J. O’Neil, the founder of Investor’s Business Daily. He is an investor, stockbroker, and author.
The CANSLIM formula is a systematic approach to stock picking and portfolio management that emphasizes the importance of following rules and guidelines.
The CANSLIM Formula To Choose Good Stocks
Now that we are done with the introduction let’s look at how we can use the CANSLIM formula to choose good stocks.
C – Current Earnings and Earnings Growth
This component of the CANSLIM formula emphasizes the importance of finding stocks with strong earnings growth. This means looking for companies that have consistently posted strong earnings reports and are expected to continue to do so.
The emphasis is on finding companies that have been able to deliver consistent earnings growth and have a strong track record of delivering on their financial commitments.
The annual earnings increase component of the CANSLIM formula is all about finding stocks with a strong upward trend in earnings. This means looking for companies that have posted year-over-year increases in earnings and are expected to continue doing so in the future.
N – New Products, Services or Management
The new products, services or management component of the CANSLIM formula is all about finding companies that are innovating and introducing new products or services to the market. This component also emphasizes the importance of having a strong management team, as a well-run company is more likely to succeed in the long term.
S – Supply and Demand
This component of the CANSLIM formula is all about understanding the forces of supply and demand and how they impact the price of a stock. In general, stocks with strong demand and limited supply perform better than those with weak demand and abundant supply.
The leader or laggard component of the CANSLIM formula is all about finding stocks performing well compared to their peers. This means looking for companies outpacing their competitors in earnings growth, sales growth, and market share.
I – Institutional Sponsorship
The institutional sponsorship component of the CANSLIM formula is all about finding stocks backed by large institutional investors. This means looking for companies with a large base of institutional shareholders likely to receive continued support from these investors.
The market direction component of the CANSLIM formula emphasizes the importance of timing your investments based on the market’s overall direction. This means looking for opportunities to invest in the stock market in a long-term uptrend and avoiding investments in a downtrend.
CANSLIM formula is designed to help investors identify stocks with strong earnings growth, solid management teams, and favorable market conditions. By following the guidelines of the CANSLIM formula to choose good stocks, investors can increase their chances of success and avoid common mistakes such as investing in stocks with poor earnings growth or investing in the stock market during a bear market.
In conclusion, the CANSLIM formula to choose good stocks is a comprehensive investment strategy many investors have used to build successful portfolios. While it is not a guarantee of success, following the CANSLIM formula can help investors make informed decisions and minimize their risk of loss.
Hope that you now know how to use the CANSLIM formula to choose good stocks. But as with any investment strategy, it is important to do your research and due diligence before making investment decisions.
Renting vs buying is one of the hottest topics around town. This is for those who can’t decide whether to purchase a house in 2023 or keep renting until you can afford a home!
Purchasing your own home or property is one of the biggest achievements in life. The concept of putting a big amount of money into such an asset is overwhelming, and it is something that requires careful consideration.
Economists anticipate a contraction in the global economy in 2023, although most economies worldwide have largely returned to normal operations since the COVID-19 epidemic.
It’s also important to consider the costs associated with purchasing a home, which include mortgage payments, stamp duty, legal fees, valuation fees, mortgage insurance (MRTA), and real estate agent fees.
Yet, on the other hand, like most Malaysian millennials, you are probably sick of paying a sizable portion of your monthly rental income. And wouldn’t it be lovely to own your home, which could lead to a future period of strong capital growth?
Nonetheless, there are several grey areas in the renting vs buying decision. In the end, everything relies on the situation and future goals of the individual.
Did you know that based on the recent findings by National Property Information Centre (NAPIC), Malaysia’s median house price is RM320,000? But as you can see from the photo below, there is a huge median price difference across states in Malaysia.
According to NAPIC, the median home price in Malaysia in 2022 was RM320,000, up from RM305,000 in 2021. However, it fell to RM295,000 in Q1. The most expensive states to own a home in are Putrajaya, Kuala Lumpur, and Selangor, but this price differs. The median home price in Kedah and Melaka is RM220,000, which is half that of Kuala Lumpur.
Does it also depend on your location and whether you should rent or buy a house? There is no accurate answer to that. It all depends on you.
Yes! Every one of you has different life commitments, needs, and others.
Renting Vs Buying: Is Owning a Home Cheaper Than Renting?
We’ll use a renting vs buying calculator to estimate how much renting versus buying will cost.
Consider that you have decided to purchase a condominium at Setia Alam in Selangor for RM560,000. You will need to pay
10% upfront as a down payment
4% as a closing fee (legal fees, stamp duty and valuation fees)
3% Home Insurance
Monthly payments of about RM2,500
RM250 maintenance fee
The following are used to compute this:
10% down payment
4.25% interest rate
30-year loan term.
In contrast, the identical unit will cost you RM2,100 monthly to rent. You must pay the following before committing: RM5,750 as a down payment (equivalent to 2.5 monthly rent)
The renting vs buying Calculator makes the following assumptions:
Property values grow by 2% year over year.
Rental rates for the same properties increase at a 2% YoY rate.
4.0% as an investment yield (the percentage of annual earnings from investment in FD, stocks etc.)
Renting VS Buying: Cost
After 6 years, your total cost of homeownership (down payment, mortgage, taxes, etc.) for an RM560,000 home in Malaysia would be RM829,577. Renting leaves you with RM616,246 in your pocket (including the money you didn’t spend on a down payment).
Renting VS Buying: Gain
After 6 years, if you buy, your home will have RM181,393 in equity (available to you when you sell). However, if you instead rent and invest your down payment and the other money you save, at a 4% return rate, it will earn around RM17,602 in 6 years.
Looking at your gross costs, equity and investment potential, buying is better for you to buy than renting if you plan to live in your home for more than 6 years.
As a result, it is better for you to only invest in a property that you are positive will meet your and your family’s needs over the long run. Dont forget about RPGT! It must also be considered by buyers who intend to upgrade in 5 years or fewer.
Remember that this is only an example for us to understand and see the whole picture. Prices for buying and renting property can vary significantly depending on the type of dwelling, the age of the property, and the location.
There are many other factors in deciding whether buying or renting is better for you. However, one of the easiest and fastest ways to do it is by using a renting vs buying calculator.
You should experiment with the renting vs buying calculator to determine whether buying your property right now makes sense.
In conclusion, the decision to rent or buy property in Malaysia ultimately comes down to one’s circumstances, financial status, and market trends. For those not yet ready to make a long-term commitment or who need flexibility, renting may be a better option.
On the other hand, buying a property may be a better choice for those looking for stability and long-term investment. It is important to consider all factors and make an informed decision based on needs and circumstances.
Insurance is an essential aspect of financial planning. Think of insurance as a cushion. If tragedies or accidents occur, insurance acts as a financial cushion to protect what matters most to you – be it your loved ones, your assets, or your business.
Before the Covid-19 pandemic, insurance was considered a ‘nice-to-have’ instead of ‘must-have’. However, the pandemic shook up the general perception of insurance as people started to realise the importance of having a financial safety net to shoulder against life’s uncertainties.
Even so, many do not understand what insurance is, how it works and the types of insurance available.
Insurance is usually a financial cushion to protect you and your family. | Credit: fernandozhiminaicela
What is insurance and how does it work?
In a nutshell, insurance is a contract (deemed as a policy), whereby policyholders receive financial protection against losses resulting from an unforeseen event.
Policyholders pay a fixed premium on a monthly, quarterly, semi-annually or annual basis to an insurance company which pools risks to hedge against potential losses. Financial planners recommend setting aside 6% of your monthly income for insurance.
How do I know which insurance to purchase?
Some simple calculations like what you can afford and how much coverage you’d need would be what you would consider before buying a policy. | Credit: stevepb via Pixabay
Before you purchase an insurance policy, it is important to ask yourself:
Your financial commitments: What is your debt situation? How would you manage your financial risks if you were to lose your job, or for your family manage if you were to pass on?
Your dependents: If you were to lose your job or pass on, would your dependents be able to manage financially? How much would your dependents need to cover living costs?
Your medical history: Is there a history of critical illness such as cancer or stroke in your family? Do you smoke?
The nature of your job: Do you have a high-risk job, a physically demanding job or a job that requires frequent travelling?
Your assets: Is your property insured against potential theft, fire, flooding, burst pipes or earthquake risks? Are you able to sustain losses or damages to your vehicle in the event of accidents, theft or fire?
Based on your answers above, you would have a clearer idea as to the types of insurance as well as the policy limit (sum insured) that you would require.
What are the types of insurance?
Life Insurance or Takaful
People often confuse life insurance and health insurance. Life insurance is essential primarily if you have debt or a spouse/dependents relying on your income. Your life insurance company pays a lump sum benefit to your next of kin to serve as a financial relief in the event of your demise or total permanent disability.
Takaful is an Islamic financial product that is regulated through the Islamic Financial Services Act 2013 and is Shariah-compliant. Do note that it is not considered ‘Islamic insurance’, even though that’s what many seem to regard it as such. Unlike conventional life insurance, Takaful participants contribute or donate an amount to a tabarru fund, from which the mutual risk of losses is borne based on the Islamic principles of brotherhood.
Health or Medical Insurance
If you are diagnosed with an illness, there are both direct and indirect costs involved. On top of direct costs such as your medical expenses, your illness may affect your ability to work, pay off debts or afford living expenses.
According to Aon’s 2023 Global Medical Trend Rates Report, medical inflation in Malaysia stands at 12% and is expected to rise. Medical insurance or commonly known as a medical card is a policy that reimburses your medical expenses in the event of illness, hospitalisation or surgery.
There are many medical cards in the market, with some starting from as low as RM5-10 per month. It is not mandatory but some employers include medical insurance as a fringe benefit which only covers up to a certain limit.
Illness can strike at anytime changing the course of your life; so it’s better to always be prepared. | Credit: geralt via Pixabay
Critical Illness Insurance
Based on your family and medical history, consider purchasing critical illness insurance on top of a medical card. A critical illness policy offers a lump sum payout as an income replacement if you are diagnosed with cancer, stroke, heart attack and so forth.
Personal Accident Protection
If you are a frequent traveller or involved in a physically demanding job, personal accident insurance is ideal for you as it covers medical expenses incurred from an accident, travel inconveniences or sickness resulting from travelling.
Property Insurance
After spending your hard-earned money on your home or property, the last thing you would want is to leave it unprotected from potential risks such as fire, theft, flood and natural disasters. Though property insurance is not compulsory in Malaysia, it is worth purchasing as it is not too costly.
Motor Insurance
Car or motor insurance is mandated by the Road Transport Department (JPJ) Malaysia, as you will not be able to apply for road tax without having a policy. In case of an accident, fire or vehicle theft, a comprehensive motor insurance covers damages and losses associated with the third-party injury as well as you or your authorised drivers who are driving the vehicle.
Getting started with insurance may be an overwhelming process. Rest assured, it is not necessary to purchase all types of policies, only the ones you truly need.
A great way to start is with the essentials such as medical and life policies. Afterwards, you can schedule a regular policy review to assess your evolving protection needs.
By Mabel Yan
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Amazon Web Services’ RM25.5 billion investment into Malaysia – making it the first in the region for cloud computing infrastructure with 3 availability zones is a catalyst on many fronts.
MRANTI believes this will accelerate the rate of innovation as it opens up more bandwidth for Malaysian innovators to closely collaborate with leading science, technology and innovation teams across the value chain, from anywhere in the world, at speed and with greater capacity, reliability, availability, manageability and security. This will raise the stature of our R&D for commercialisation while elevating more Malaysian technologies to market.
This in turn, will enhance the country’s security of innovation supply.
AWS’s investment also opens up new pathways for upstream and downstream R&D services and solutions to be developed in Kuala Lumpur – which is ranked as a top 10 innovation hub in the region.
It will also help us draw in the right talent and move Malaysia up the innovation value chain as the next-generation cloud infrastructure system will support a host of technologies by high-growth companies, set to take flight in the coming years.
Malaysia is already a base for many leading multinational and leading technology companies, and we believe more will follow in AWS’ lead in this regard.
Dzuleira Abu Bakar, CEO MRANTI
MRANTI is committed to connecting investors and innovators to accelerate ideas to impact. In this regard, we look forward to collaborating with AWS and Malaysian institutions, startups, and companies to deliver cloud-powered applications to fuel economic development across the country and to spur job creation, skills training, and educational opportunities for communities.
Ultimately, it will serve the needs of the rakyat, business and industry – as outlined in the Ministry of Science, Technology and Innovation (MOSTI)’s strategic initiatives and framework to enable Malaysia to migrate from a technology consuming to a technology producing nation strongly based on an innovation-driven economy.
About MRANTI
MRANTI is the one-stop research commercialisation agency with the resources to accelerate the commercialisation of innovative ideas that will drive impact. As a connector, collaborator and catalyst, MRANTI will connect problem statements (demand) with solutions (supply), bridging collaboration between public and private sectors (transition); increase private sector participation, either through market access, investment, advisory or consultation and facilities for testing and prototyping.
Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and Maybank will co-host the 21st instalment of Invest Malaysia (“IMKL 2023”) on 8 March in Kuala Lumpur. The forum, which is Malaysia’s largest annual capital market gathering, is expected to attract an estimated 1,000 local and foreign fund managers, attending in person and online, with an estimated total AUM of USD10 trillion (approximately RM44 trillion).
Themed “Reshaping Malaysia’s Narrative: Strengthening Resilience & Sustaining Growth”, IMKL 2023 will provide an in-depth look at the strategic approaches and measures introduced in the recent re-tabled Budget 2023, which will support Malaysia’s long-term efforts to achieve sustainable development and economic growth. The conference will be inaugurated by Prime Minister YAB Dato’ Seri Anwar Ibrahim, who will deliver the Keynote Address, which is expected to focus on the country’s efforts to achieve high-income nation status while adhering to the values espoused in the “Malaysia Madani” concept.
“The recent budget reinforces Malaysia’s commitment to fiscal reform while addressing key concerns investors have when making investment decisions. The absence of a prosperity tax from this year’s budget also bodes well and encourages Malaysian companies to aim for higher earnings, thus raising their attractiveness to global investors,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
“Further, the tax incentives on listing fees for the ACE and LEAP markets, as well as for technology-based companies listed on the Main Market, will encourage the listing of more high-potential and innovative companies,” added Datuk Muhammad Umar Swift. “This would result in more investment opportunities and increased trading interest among investors while also helping us achieve our target of 39 listings for 2023.”
Dato’ Khairussaleh Ramli, Group President & Chief Executive Officer at Maybank said, “We are honoured to partner with Bursa Malaysia once again to bring IMKL 2023 to the investing community. The conversations at Invest Malaysia will provide a better understanding of Malaysia’s medium-term fiscal and economic strategy in sustaining development, enhancing competitiveness and resuming its growth trajectory. We believe that a holistic approach that balances social and economic needs is pivotal for the nation to strengthen its resilience and to sustain growth. This is reflected in Maybank’s own mission of Humanising Financial Services, driven by our M25+ strategy.”
IMKL 2023 will showcase the following conversations:
• YB Tuan Mohd Rafizi Ramli, Minister of Economy will discuss “Strengthening Economic Resilience”, • YM Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of International Trade & Industry will share his thoughts on “Enhancing Malaysia’s Competitiveness”, • YB Ahmad Fahmi Mohamed Fadzil, Minister of Communications & Digital will talk about “Developing a Thriving Digital Ecosystem”, • YB Anthony Loke, Minister of Transport will discuss on “Infrastructure Development for Sustainable Growth”, and • YBhg Datuk Johan Mahmood Merican, Treasury Secretary General, Ministry of Finance will share further details on “Budget 2023 Highlights and Strengthening Fiscal Reform”.
“IMKL 2023 will provide impetus to strengthen the key building blocks that will reinforce Malaysia’s reputation as an attractive investment destination in the region,” concluded Datuk Muhamad Umar Swift.
IMKL 2023 will be live-streamed for public viewing on Bursa Malaysia’s Facebook page at https://www.facebook.com/BursaMalaysia/ on Wednesday, 8 March 2023 starting at 10.00am.
About Bursa Malaysia
Bursa Malaysia is an exchange holding company incorporated in 1976 and listed in 2005, and has grown to be one of the largest bourses in ASEAN today. Bursa Malaysia operates and regulates a fully-integrated exchange offering a comprehensive range of exchange-related facilities, and is committed to Creating Opportunities, Growing Value. Learn more at www.bursamalaysia.com.
About Maybank
Maybank is among Asia’s leading banking groups and South East Asia’s fourth largest bank by asset. The Maybank Group has an international network of over 2,600 offices in Malaysia, Singapore, Indonesia, Philippines, Cambodia, Thailand, Vietnam, Myanmar, Brunei, Laos, India, China, UK, USA, Pakistan, Saudi Arabia, Uzbekistan, and Dubai. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 42,000 employees worldwide. (www.maybank.com).
Saturna Sdn Bhd, a leading shariah-compliant financial services firm, today officially launched its digital platform to help investors grow their wealth ethically and securely.
The online tool enables individuals to begin their investment journey in just a few clicks, with the guidance of Saturna’s deep expertise in the world of Islamic finance. Unlike other offerings currently available on the market, Saturna takes an investor-friendly approach by imposing no sales nor redemption charges and no hidden fees. Potential investors can also enjoy flexibility as Saturna’s funds do not come with a minimum holding period.
“Our new online platform is designed to be simple and secure for a seamless user experience,” said Pn. Shahariah Binti Shaharudin, President of Saturna Sdn Bhd. “It’s accessible enough for anyone to start investing in shariah-compliant solutions instantly, regardless of their experience or investment budget.”
Pn. Shahariah Binti Shaharudin, President of Saturna Sdn Bhd
The launch of Saturna’s digital platform was officiated by Pn. Ruslena Ramli, Director of Digital Finance and Islamic Digital Economy of Malaysia Digital Economy Corporation (MDEC), who expressed her hope that more organisations within the Islamic financing space will adopt innovative solutions to grow the industry further. “With this online platform, Saturna has led the way in making Islamic-based investment opportunities more available to a wider audience, enabling more individuals to benefit from the wealth of expertise they have to offer ,” said Pn. Ruslena.
In addition to Islamic principles, Saturna’s funds also comply with global Environmental, Social, and Governance (ESG) standards, where investments are made in companies engaging in socially-responsible and environmentally-friendly business practices or products.
“We see ESG measures as complementary to shariah-compliant initiatives, as they are both driven by sustainability considerations, mitigate volatile risk-taking, and value long-term growth,” explained Pn. Shahariah. “I believe the events of the past few years, from the 2008 financial crisis to the Covid-19 pandemic, have inspired a paradigm shift in the way we view investing and increased the appetite for socially-conscious metrics. With our extensive expertise in Islamic-based fund management, Saturna is well-positioned to meet this demand with alternatives to conventional financial planning solutions.”
The launch event also featured a forum discussion on future trends that will shape the investment scene in the coming year. Panellists at the dialogue included Pn. Ruslena Ramli, Director of Digital Finance and Islamic Digital Economy of Malaysia Digital Economy Corporation (MDEC), Yang Berusaha Ahmad Dasuki Abdul Majid, Chief Executive Officer of PTPTN and Professor Dato’ Dr Mohd Azmi Omar, President and Chief Executive of the International Centre for Education in Islamic Finance (INCEIF).
Saturna Sdn Bhd is a wholly-owned subsidiary of US-based Saturna Capital, whose Amana Growth Fund was ranked as the top Large Growth Fund of 2022 by US News & World Report. Since entering the Malaysian market in 2010, Saturna has established itself as a reputable and transparent Islamic financial firm, listing the National Higher Education Corporation Fund (also known as Perbadanan Tabung Pendidikan Tinggi Nasional or PTPTN) and the the Employees’ Provident Fund (EPF) as among its largest corporate investors.
Among the key tenets of shahriah-based investing are the prohibition on interest (or riba) as well as investments in activities that are prohibited by Islam (or haram), such as alcohol, gambling, and conventional insurance. Pn. Shahariah points out that these criteria are underpinned by a need to be socially responsible, making shariah-friendly investments an attractive option for anyone interested in ethical and transparent financial solutions.
“We are unique even within the Islamic finance sector as we prioritise value-orientated investments and sustainability over short-term profits, as backed by strong research and screening tools; our global track record over the decades has shown that this is an approach that works. Our commitment to Islamic principles shines throughout our investment process and client relationships. Since we operate on a collaborative model based on profit-and-loss sharing, we do not charge any fees when it comes to investing or withdrawing returns — we only earn if our clients earn,” said Pn. Shahariah.
In Malaysia, Saturna manages two popular shariah-compliant equity trust funds, namely the ICD Global Sustainable Fund and the ASEAN Equity fund, which offer investors exposure to global and regional investments respectively. Both funds are authorised by the Securities Commission Malaysia, and invest in a diversified portfolio that favours stable earnings for the long-term.
To sign up to Saturna’s digital platform, or learn more about its investment portfolio, go to: https://saturna.com.my/
About Saturna Sdn Bhd
Saturna Sdn. Bhd. (199501012969) is the wholly-owned Malaysian subsidiary of Saturna Capital Corporation, resulting from the 2010 purchase by Saturna Capital of Alpha Asset Management located in Kuala Lumpur. Saturna Capital is internationally recognised as an adviser to the Amana Mutual Funds Trust. We help individuals and institutions build wealth and preserve capital.
We serve institutional clients with active asset management services, individual investors with private mandates and manage unit trust funds approved and regulated by the SC of Malaysia
Saturna’s deep-rooted belief in value investing shines through in the quality of our investments. We don’t follow trends, we analyse opportunities. Our broad experience distinguishes Saturna in the investment business. Each of our employees is committed to creating and maintaining a unique firm, where client interests always come first.
Our global headquarters in Bellingham, WA sits between the Pacific Northwest’s major cities (Seattle and Vancouver, BC). Employees in the Bellingham, Los Angeles, Henderson (Nevada), and Chicago metropolitan areas service clients across the U.S.
Saturna Sdn Bhd holds an Islamic Fund Management Licence (“IFML”) with the Malaysian Securities Commission. Saturna is the first conventional asset manager to be converted to an Islamic asset manager.
Krenovator Technology Sdn. Bhd. announced the immediate availability of Abraham, an AI Coding Assistant on its digital Tech Talent Platform that was launched late last year. The new tool provides users with real-time feedback and suggestions, helping them to improve their coding skills efficiently and effectively. It also allows users to create new software at a much faster rate than conventional methods. The intelligent coding assistant is available for users at no charge.
Among Abraham’s main capabilities are to assist users in completing unfinished code as well as detect any syntax or semantic errors in a code. Mahadhir Yunus, CEO of Krenovator said, “We are thrilled to introduce Abraham to the world. As a provider of coding training, we often receive a high volume of questions from our users. Some of these questions were unique, which made it challenging to provide quick answers, while others were repetitive. These situations have inspired us to create an intelligent and efficient method of learning to code. Our objective is to offer targeted assistance to developers worldwide so that they can create high-quality and innovative solutions.”
(L-R) Mahadhir-Yunus, CEO and Calvin Lim, COO
Currently, Abraham supports full-stack programming covering 17 popular programming languages and frameworks including frontend, backend, database, API, Angular, DevOps, Flutter, .NET, PHP, Python, Java, and Javascript. Krenovator is working on expanding the list.
“We are glad that the work that began in early 2022 to develop Abraham has finally come to fruition now. Whether it’s a junior coder trying to fix a bug or a senior software engineer wanting to inspect their codes, Abraham can assist 24/7,” Mahadhir explains.
“We see that Abraham has the potential of becoming the first line support assistance when it comes to coding,” he concludes.
Krenovator plans to introduce an enterprise version of the AI coding assistant in the future. Krenovator’s Tech Talent Platform offers free coding and training modules developed by the Company. It has also recently partnered with Coursera to allow users to obtain a certification. The platform currently has more than 3,000 tech talents from Malaysia and Indonesia combined.
About Krenovator
Founded in 2019, Krenovator is an AI tech talent and placement platform that provides services to two main groups – individuals who want to learn and improve coding skills, and companies looking to hire qualified software developers. The Company’s digital platform which was launched in late 2022 has attracted over 3,000 tech talents from Malaysia and Indonesia. So far, the Company has also successfully helped more than 200 qualified talents to land a tech job with employers from Malaysia, Singapore, and the United Kingdom. Krenovator is based in the state of Selangor, Malaysia. Visit us at: www.krenovator.io.
Malaysians are getting more health conscious, as we can see by the mushrooming marathon events. Sales of running shoes, sports attires are also on the rise.
Smart Investor recently interviewed Sheyong Tan, Co-Founder of BiiB on the upcoming Malaysia Corporate Team Marathon, Malaysia’s Largest Intercompany Marathon Challenge. GetBiib is a startup supported by the Malaysian Research Accelerator for Technology and Innovation (MRANTI).
Sheyong Tan, Co-Founder of BiiB
Smart Investor: How do you plan to enlist 200 companies and 10,000 marathoners to achieve the 500,000,000 steps through this effort?
Sheyong Tan: We are creating 3 unique experiences through this event:
1. First ever inter-corporate challenge that is inclusive for both bigger corporations and SMEs. It doesn’t require a huge commitment like donation or fee to be part of it.
2. Not by performance but teamwork. Everyone in the team must do their part to help the company to reach the team goal. It is ok if you’re not the fittest, you can play your part too. In this challenge, you have competitors and you have a common target and a well designed format to motivate your team to work together and kindle the team spirit among your employees. Most importantly, the organiser will manage everything for you, the employer’s job is just to cheer for the team.
3. Attractive rewards focusing on fitness, health and well-being to improve your workplace wellness. Some companies are adding in more “private” rewards to motivate the team to participate. Prize money is usually important for performance based sporting events but for an event that is inclusive and one that promotes team participation – like ours, we want the participants to focus on what he or she can do as part of the team rather than making them to feel they have no chance to win any prizes because they would never the fittest person in the room.
SI: How are you adopting a similar strategy in the annual running league RUNLIGA Malaysia which drew in more than 20,000 participants in the past 2 editions?
ST: The GetBiiB app has been used to host the largest running league in Malaysia for 5 consecutive years.
Through this, we know the best practices, pain points and insights to create the best in class challenge for participants of this corporate challenge.
As such, for this event, we are working with companies who are aligned with our vision to create a healthier workplace and promote well-being among our workforce.
As such, we are working with healthy snack company Signature Market, healthcare company like Doc2us, wearable technology company COROS Malaysia, mental health company Thoughtfull, employment platform like Jobstreet, outdoor company PTT Outdoor, sports facility booking platform AFA and the newly listed technology company Agmo Berhad. The Department of Statistics (DOSM) is also a partner.
We have prepared some nice goodie bags for the participants and finishers which is nearly 20X more than the participation fee.
We are still open for sponsorship and collaboration with any businesses who believe in our vision.
SI: How is this is different from other corporate marathon programmes or apps that companies can choose to organise themselves?
ST: There are several key features.
Key feature 1: Interesting and fun team-based game format
Our platform has different game formats to focus on different outcomes of the challenge. It can be for health, for team building, for a cause, etc.
In a mass participation event like this, the main goal is to motivate participants to commit themselves and at the same time help their team to achieve the best possible result. As the organiser, we know that intrinsic rewards such as pushing through one’s own limit, making new friends, becoming a finisher or becoming one of the top 10 teams can create a more lasting impact.
More than an app, we create a healthy experience for the participants
Key feature 2: Professional support
Joining an online challenge can be challenging for many first timers. We provide professional support to our participants to help them to enjoy the challenge with their team.
The GetBiiB app has been designed to offer participants a hassle free way to create company wide engagement with minimum budget and minimum effort. The HR department or organising teams do not need to put in work extra hours to manage well-being programs for their employees as they can leverage what we have already designed.
SI: Why the need for something like this now? What are the risks / opportunities for companies who (do not) participate?
ST: In this, I would like to quote Bill Gates “The health of a society is ultimately determined by the health of its citizens.”
Overall, improving the health and well-being for employees will reduce the burden of healthcare and insurance on the company. The government recently announced a target of 10 million healthy Malaysians in the next 10 years – and there’s no better time than to start now!
Through this event, we would have just involved 1% of the population. We have a lot more work to do in making sure every organisation can host their very own sporting event easily with the lowest possible effort for highest possible impact.
We wanted to remove the barrier to host an event or a challenge so that big and small organisations can do it at least once a year and collectively we can impact 70% of the population in the next 10 years.
Running / walking is an easy and low cost activity – just need to contend with weather. This is easily an intergenerational activity which is inclusive and allows teams to celebrate their unique strengths. With more hybrid working models in play today, it is important to bring teams together
We also try to lower the barrier of entry to the lowest possible to make sure most people can be part of it. For the Malaysia Corporate Team Marathon, as long as you’re able to walk, you can be part of it without much issue.
All participants commit based on their ability.
SI: Insights on how bosses can engage their employees to participate in an activity like this. How can bosses onboard employees who may be demotivated to exercise ie “this is not my thing”?
ST: Be inclusive and make it accessible to all the employees:
By removing barriers to participation, companies can increase engagement and participation, which can lead to better outcomes and a greater impact.
By making inclusivity and accessibility a priority, we can create a more welcoming and supportive environment for all employees and ensures that all employees have the opportunity to participate and benefit from the initiative.
Find some internal champions
Inspire someone in the community to take the lead, regardless of position and job scopes. This person will be responsible to hype up the event to drive everyone to move forward as a team and he or she should be rewarded too to take up this vital role.
Bosses should be sporting enough to be part of the team too.
Rewards: Companies that offer rewards, incentives or prizes for their employees have a higher engagement and commitment level.
Early engagement: Start engaging with your teams now to prepare them for the challenge – some internal promotion is important.
Positioning: It is important not to position it as an exercise or a workout as it turns people off and relates it to tired, tough and difficult. It is best presented as a challenge for the whole team.
Foster Team spirit: Setting a collective goal and making it inclusive for everyone to be part of it. Believe me if you are surrounded with people who would like to be part of something bigger than themselves with extra steps everyday, you don’t feel like it is a workout.
In our experience, many first time participants realise they can actually walk more and they feel they are more energized by doing so without feeling tired if they do it with a friend. Example, walking for a longer distance with colleagues to get a good lunch vs I need to workout today.
Commitment from team members will be high on some days, but others will need to make up for down days – and the effect will be quite clear especially if 1 or 2 on the team misses their daily target
Offer Strong leadership: a team captain who can create hype and also maintain the team chemistry by cheering for the weaker team members (don’t let them feel left out or shameful for contributing less) is important. Motivation is also key. Those who are fit can share their experience and help the team to go further and maintain high team morale.
Nominate a good team manager – may not be the fastest or strongest, but holds the key to motivating, setting reasonable expectations, managing team morale, etc.
The last few days towards the closing really gets really exciting. Sometimes the ones who start out strongest may not last the longest. So this is also when you will observe how individuals on the team will step up to support each other when they have a common goal and desire to achieve it.
SI: What kinds of companies have been early adopters of such programmes? What are some trends or commonalities you see amongst these companies and their employees?
ST: Companies which have active people in the workplace and believe in health and wellness are often early adopters.
Most of our corporate clients came to us because of the running or sporting communities they have personally been involved in. We believe these people are the seeds to bring change to our country’s future for a more active, collaborative and inclusive society.
SI: Conversely, how can employees get the buy-in from their bosses or management to participate in an activity like this especially if it may involve time at work ie extended lunch hour or early dismissal?
ST: They can provide a number of factual, compelling reasons to management. For example:
Improved physical health: According to one study, regular exercise can lead to a 25-30% reduction in sick leave. Another study found that for every $1 invested in wellness programs, a company can save $3 in healthcare costs.
Enhanced mental well-being: One study found that regular physical activity can lead to a 20-30% reduction in symptoms of anxiety and depression. Another study found that workers who exercise regularly are 15% more productive than those who do not.
Greater team cohesion: A review of several studies found that team building activities, such as sports and fitness programs, can lead to improved communication, trust, and collaboration among team members.
Increased retention: According to one survey, 69% of workers said that they would prefer to work for a company that offers wellness programs. Another study found that companies with strong wellness programs have a 50% lower turnover rate.
Enhanced corporate image: A survey of consumers found that 76% of respondents were more likely to purchase products or services from a company that promotes employee wellness. Another study found that companies with strong wellness programs had a 30% higher brand value.
Exchange-traded funds (ETFs) are a popular investment vehicle that has recently gained popularity due to their simplicity, flexibility, and low cost. An ETF is a type of investment fund traded on a stock exchange, similar to a stock. It is designed to track the performance of a specific market index, such as the FTSE Bursa Malaysia KLCI or the MSCI Malaysia Index.
ETFs, offer several advantages over other investment vehicles, such as mutual funds and individual stocks. They provide investors with a low-cost way to invest in a diversified portfolio of assets that can be bought and sold throughout the trading day. This article will look at some of the reasons why you need to invest in ETF.
Why You Need To Invest In ETF#1 Diversification In Portfolio
One of the main advantages of investing in Malaysia’s ETFs is that it allows investors to gain exposure to a diversified portfolio of assets that would be difficult or expensive to acquire individually.
For example, MyETF MSCI Malaysia Islamic Dividend or MyETF-MMID aims to provide investment results that closely correspond to the performance of the Benchmark Index, which is a price return index comprising 16 to 30 Shariah-compliant securities listed on Bursa Securities, with higher than average dividend yield that is deemed both sustainable and persistent by MSCI.
With an ETF, you will own multiple shares with only one purchase!
Why You Need To Invest In ETF#2 Exposure to Malaysia’s Fast-Growing Economy
Another advantage of investing in Malaysia’s ETFs is that it allows investors to gain exposure to a fast-growing emerging market. The Malaysian economy has been growing consistently over the years, and the country is known for its export-oriented industries, such as electronics, palm oil, and petroleum.
The Malaysian government has also been implementing various initiatives to attract foreign investors, such as providing tax incentives and streamlining regulations.
Source: Bursa Malaysia
To encourage investors to invest in the ETF, the Malaysian government has exempted Stamp Duty of 0.1% until 31 December 2025.
Investing in Malaysia’s ETFs is also a cost-effective way to invest in the Malaysian stock market. ETFs are passively managed, which means that they track a particular market index rather than being actively managed by a fund manager.
As a result, ETFs typically have lower management fees than actively managed funds, making them an attractive investment option for cost-conscious investors. For example, the MYETF Dow Jones U.S 50 (METFUS50) has a total expense ratio of 0.62%, which is relatively low compared to other actively managed funds.
In other actively managed funds, the minimum cost usually involves around 2% to 5% annually for management fees. Some mutual funds also will charge you a performance fee when your investment outperforms the market or the benchmark.
ETFs are also highly liquid, meaning they can be bought and sold on a stock exchange throughout trading. This gives investors great flexibility and control over their investments, as they can buy and sell their ETF holdings anytime.
Additionally, because ETFs are traded on a stock exchange, investors can buy and sell them at market prices, which means they can take advantage of price movements throughout the trading day.
Investors can consider several ETFs on the Bursa Malaysia stock exchange. In addition to the two ETFs mentioned above, other ETFs provide exposure to specific sectors of the Malaysian economy.
For example, the TradePlus Shariah Gold Tracker (0828EA) tracks the London Gold Fixing PM price performance. The MyETF MSCI South East Asia Islamic Dividend (0825EA) or MyETF-MSEAD is an ETF that tracks the performance of the MSCI South East Asia IMI Islamic High Dividend Yield 10/40 Index, which objectively and passively represents the dividend yield opportunity within South East Asia’s Shariah equity markets.
Investing in Malaysia’s ETFs can expose investors to a fast-growing emerging market and a diversified portfolio of assets. ETFs are also cost-effective, highly liquid, and easy to invest in. However, as with any investment, it is important to conduct thorough research and seek professional advice before investing in Malaysia’s ETFs or any other investment vehicle.
The following story is based on an actual series of events, with some names and circumstances fictionalised. Any similarity to any person’s name, character, or history is entirely coincidental and unintentional. It is to manage a business, let alone a family business.
Running a good business is one thing, but having a thriving family business is totally different. Steven was a very successful entrepreneur in the packaging business. He has a wife, Mary, and two sons, John and Wilson, who used to be close to each other. The packaging business has grown large and was listed five years ago.
By then, Steven was 59 and had intended to hand the throne to his two sons when he was 65. Both of them were bright sparks who had graduated with honours.
Going Into The Family Business
However, John, the older boy by one year, was not interested in getting involved in his father’s business and preferred to pursue a career as a professional accountant. He started his accounting practise and got married shortly after to a woman his father disliked. He considered her a conniving woman with shallow thinking.
Conversely, Wilson was happy to get into the business and became in charge of sales and marketing. The father hoped that John would eventually get into his business as the financial man, which would have been ideal for him—two trusted lieutenants, one overseeing the frontline and the other running the operations.
Try as he might, he could not persuade John, who would not budge. Over the years, Steven had passed on a fifth of his shareholding in the holding company to each of his two sons.
He was sad to note, though, that John had, in recent years, been picking quarrels with Wilson at family gatherings until both of the sons were no longer on speaking terms.
One day, Steven called me to meet him about his succession plan for the business in case he passed away. Over a private dinner, he confided in me that he was, while at the pinnacle of his business venture, very unhappy about his two sons’ relationship with each other.
He was very concerned that their distribution could end in business breakup and means the end for their family business. I told him I would talk to both of them as it may be difficult for them to open up to their old man.
After talking to John and Wilson separately, it became clear that Wilson had no problems with John, whom he still respected and looked up to as his taiko, but John had doubts about Wilson. It turned out that John didn’t like Wilson because his wife, who was always suspicious of her brother-in-law, made him feel that way.
Raising questions like why Wilson was ‘abusing’ the company’s resources by frequently using its high-end cars, buying expensive corporate gifts, and enjoying lavish entertainment at fancy restaurants and nightclubs.
At my next meeting, I told Steven about the underlying cause and suggested that he bring John on the board of the holding company of the listed company. I also asked him to call for monthly meetings where he and Wilson could brief the family on business developments, financial performance and issues confronting the business. He bright-eyedly accepted the idea.
Two years later, I bumped into Steven, and he thanked me profusely for helping his family business. He told me that over this period, John became familiar with the father’s business strategies and understood why his brother did what he did.
The packaging business was highly dependent on several large Japanese clients whose head office visitors expected to be entertained extensively and in a rather plush manner. Over time, John began to take an interest in the business, and the father felt that John would be ready to take over as the number one by the time he retired.
It is good that this case had a happy ending simply because of transparency and getting buy-in from the outsider son to help the family business.
Rockwills International Group, now in its 28th year, pioneered professional will writing in 1995 and has since evolved into the leading estate planning specialist in the country. It is today the largest provider of solutions and support services in the areas of trusts, succession, management and distribution of wealth. It has shareholders’ funds exceeding RM50 million. It has done over 280,000 wills and 15,000 trusts and hold more than RM25 billion in assets under trust.
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