Public Bank Bhd's Gold Investment Account

In view of the world food crisis and the increase in inflation in Malaysia's economy, I have recently sold all my investment in shares listed on Bursa Malaysia and use the sale proceeds to invest in Gold. The gold fineness is 99.9% and it is a good hedge against inflation.

The invesment in gold is by way of a Gold Investment account with Public Bank Berhad. A minimun initial investment of 20 gram is required to open the account and subsequent investment of 5 gram. However, the account must be maintained with a minimum balance of 2 gram. You will be provided with a passbook to record your investment and divestment.

The daily gold price is available from Public Bank website and as at today, Wed, 25 June 2008, the prices are :-

Selling : RM95.52/gram; and

Buying : RM92.52/gram.

Please note also, Malayan Banking Berhad has also a similar product called Gold Savings Passbook and their pricing as at today are as follow :-

Selling : RM97.87/gram; and

Buying : RM90.63/gram.

Please also note on the different of the spread between the selling and the buying price, Public Bank RM3/gram and Maybank RM7.24/gram!

Trusting that the appreciation in gold prices will offer me a good hedge against the rising inflation in Malaysia.

Cheque Truncation and Conversion System (CTCS)

Bank Negara Malaysia is introducing a new cheque clearing system, Cheque Truncation and Conversion System (CTCS) to replace its old system which required physical exchange of cheques for clearing. The new system will electronically capture and transmit of cheque images and data between the banks and clearing house. Customers will benefit from the speedier and more efficient clearing system especially the availability of funds for outstation cheques.

All cheques will be standardised using 3.5' x 7' format. Old personal cheques with a smaller size will be invalid after 30 June 2008 and those with unused personal cheques, you may return to your bank for refund of stamp duty. However, Public Bank Bhd, advised its customers to try to use all the cheques before 30 June 2008 and after that destroy the unused cheques as they will not refund the stamp duty!

The FAQ on the CTCS are available on BNM website.

On my own experience, I've banked in a local cheque in CIMB Bank, Ipoh Garden Branch on Sunday, 15 June 2008. As at today, the cheque has yet to be cleared. Various enquiries to the CIMB Bank, did not help as the Bank official response is that due to the new implementation of the CTCS, cheques banked in on Friday, 13 June 2008 until 18 June 2008, were not cleared!

However, the Bank promised to rectified the problem and will credit/reverse whatever interests earned/charged for the period from the date of banking till the cheque is cleared.

Hope the bank will keep its promise!

The Royal Bank of Scotland

I had the privilige to attend 'An Evening with The Royal Bank of Scotland' held at Indulgence Restaurant, Ipoh, this evening. The Royal Bank of Scotland ("TRBOS") just acquired ABN-AMRO Bank and Malaysia is the first country in the World that the existing ABN-AMRO Bank assumed the name of TRBOS. There is a TRBOS branch in Sitiawan, Perak.

Do you know that TRBOS is the first bank in the world, introduce 'overdraft facility' in 1728?

Ringgit Malaysia Appreciated

Ringgit Malaysia (RM) rises to a new 8 year high of RM3.605/US$ on Friday, May 5, 2006! This meant that on July 21, 2005, Malaysian need to pay RM3.7995 to buy one US$, last Friday RM3.605 onlya A saving of RM0.1945 or 5.1%! Woh!!! This is fantastic! Time to indulge in luxury imported goods, Gucci, LV, Dior & etc..... It is also expected to rise to a range of RM3.5175 - 3.5600 in 12 months time. Should convert all US$ into RM now and buy back later when it reach 3.5175 in future! Gain of RM0.0875/US$. Who said making money is hard!