New JPJ Summon Charges? (Dec 2011)

Don't know whether this is true or not, JPJ (Jabatan Pengangkutan Jalanraya) have recently unveiled a set of new charges for traffic offenders. As a Malaysian with proper financial planning, sometimes we simply cannot ignore those "saman" issued by JPJ for various offences. It can eat into our money. By carefully study the charges being imposed by JPJ, we can estimate the amount associated with various traffic offences for proper "saman" planning.

Traffic Summon Charges

Price quoted below are nett without further discount, bargaining are subject to price increase without further notice.

Speeding: 

Exceeding 1 - 20km/h = $130 + 4 Demerit  Points. 

Exceeding 21 - 30km/h = $150 + 6 Demerit Points. 

Exceeding  31 - 40km/h = $180 + 8 Demerit Points. 

Exceeding 41 - 50km/h = $200 +  12 Demerit Points + Court. 

Exceeding 51 - 60km/h = $200 + 18 Demerit Points + Court. 

Exceeding 61km/h = $200 + 24 Demerit Points + Court. 

Careless Driving = $150 + 6 Demerit Points. 

Inconsiderate Driving = $170 + 9 Demerit Points + Court. 

Dangerous Driving = $200 + 24 Demerit Points + Court + Vehicle Compounded. 

Illegal Racing = $200 + Vehicle Confiscate + Court. 

Fail to put on Seat Belt = $120 + 3 Demerit Points. 

Double White Lines = $130 + 4 Demerit Points. 

Phone and Drive = $200 + 12 Demerit Points + Phone Confiscate.

DO NOT hold your handphone in your hand when you drive even with loud speaker or ear piece. 

Drink Driving (1st offence) = Up to $5,000 Fine and, or Jail Term + License Suspended + Court. 

Drink Driving (2nd offence) = Jail Term + Fine + Court. 

Making an illegal U Turn when there's no U-Turn sign = $70 . 

Fail to Signal when changing lanes = $70 . 

Driving at night without Headlights or Taillights switch on after 7pm = $30 . 

No Number Plate =  $70. 

Obstructed Number Plate = $70. 

Obscured Number Plate  = $70. 

Number Plate Of Unapproved Type = $70 

Demerit Point System : 

Let's say you have 0 point on 1st January 2011, and you committed the offence of Failing to Put on Seat Belt. So now, you will have 3 demerit points and this will last for 1 Year. 

If during this 1 year you have no demerit points offence at all, your 3 demerit points will be gone on 1/1/2012. 

But, if during this one  year, From 1/1/2011 - 1/1/2012, you committed another offence with demerit points, your very first offence will be extended for another year until 1/1/2013. 

The information in this post is purely for readers reading pleasure only. Finance Malaysia Blog does not take responsibility on the content written here, and readers should find out the real facts themselves.

Property prices to Come Down after BNM's latest guidelines? (Nov 2011)

Like it or not, Bank Negara Malaysia announced that effective 1 Jan 2012, financial institutions must make appropriate enquiries into a prospective borrower's income after statutory eductions for tax and EPF, and consider all debt obligations, in assessing affordability.

Aimed at promoting prudent, responsible and transparent retail financing practices, the new guidelines require financial institutions to make assessments of a borrower's ability to afford financing facilities based on a prudent debt service ratio as inputs to their credit decisions.

On top of that, a new guideline was stipulated that the maximum tenure for vehicle financing should not exceed 9 years, with immediate effect (18 November 2011). Right now, there are only 2 banks which offers vehicle financing up to 11 years, and less than 2% of car buyers now opted for tenures beyond 9 years. The changes was neglect-able.

Are you an Informed Borrower?

The guidelines additionally hope to ensure that consumers are treated fairly in the sales, marketing and administration of financing facilities. As such, financial institutions are required to provide consumers with specific information on the following:

• total repayment amount
• total interest cost as well
• impact of an increase in the financing rate

The BIGgest Impact will be on Property sector?

Since that the banks are required to assess the affordability of borrowers based on net income, many people may not have the capital needed to pay for down payment. Although automobile industry will be affected, the biggest victim will be on property sector. This is because property purchasing needs more capital outlay.

On top of that, the value of property went up so high currently where the market value does not match the seller's asking price. To meet the short-fall, buyers are forced to fill-in with cash. This had already slowing down property prices lately. But, after the new guideline, would it be worst? Definitely.

The numbers of affordable buyers will became lesser. Hence, demand for property will be softened. What if supply more than demand? Simple economic theory told us that prices have to come down in order to strike a balance. I think this is true and will materialize next year.