Financial Planning

What is natural gas?
Natural gas is a mixture of hydrocarbons found in the ground independently or together with crude oil. Its composition varies (depending on where it is found), but its main component is “Methane”(CH4}. The rest of the gas is made up of varying amounts of other gases like ethane, propane, butane, and heavier hydrocarbons, plus Carbon Dioxide, Nitrogen, water and traces of other substances. Natural gas is a by-product of decaying vegetable matter in underground strata. Natural gas is the cleanest burning fossil fuel; it can help improve the quality of air and water,especially when used in highly polluted places.

Malaysia is blessed with abundant natural gas reserves. At 82.5 trillion cubic feet, these reserves are two times the amount of oil, thus there is opportunity to promote and diversify the use of the natural gas not just as a power source in the industrial and utilities sector; but also as an alternative fuel for vehicles. PETRONAS, through its wholly, owned subsidiary, PETRONAS NGV Sdn Bhd , have been making NGV available to Malaysian motorists through its expanding chain of NGV outlets in the Klang Valley and other major urban areas in the country.

FAQ’s at bottom of this page. For more info on NGV visit: IANGV or Green Car Congress

FAQ’s at bottom of this page

FAQ’s at bottom of this page

Green fuel - Commonly referred to as the green fuel because of its lead and sulphur free character, CNG reduces harmful emissions. Being non-corrosive, it enhances the longevity of spark plugs. Due to the absence of any lead or benzene content in CNG, the lead fouling of spark plugs, and lead or benzene pollution are eliminated.

Increased life of oils - Another practical advantage observed is the increased life of lubricating oils, as CNG does not contaminate and dilute the crankcase oil.

Mixes evenly in air - Being a gaseous fuel CNG mixes in the air easily and evenly.

Safety - CNG is less likely to auto-ignite on hot surfaces, since it has a high auto-ignition temperature (540 degrees entigrade) and a narrow range (5%-15%) of inflammability. It means that if CNG concentration in the air is below 5% or above 15%, it will not burn. This high ignition temperature and limited flammability range makes accidental ignition or combustion very unlikely.
Properties

Low operational cost - The operational cost of vehicles running on CNG, as compared to those running on other fuels, is significantly low.At the prevailing price of fuel ,operational cost of CNG vehicles is 68% lower than petrol and 36% lower than diesel.

FAQ’s at bottom of this page

NGV is supported by the government of Malaysia with incentives and legislation to encourage vehicles owner to use NGV. NGV price is only 68 cent/litre equivalent of petrol, is cheaper than other fuels. NGV conversion kits are exempted from import duty and sales tax.
Reduction of road tax from existing levels:

* Monogas vehicle (NGV only) - 50% off
* Bi-fuel vehicle (Petrol & NGV) - 25% off
* Dual-fuel vehicle (Diesel & NGV) - 25% off

All these are major factors for potential owners to consider when making their vehicle fuel choices. However, what many owners may not be aware of is the safety record of NGV vehicles. NGV vehicles safety record compares favourably to other traditional fuels or alternative fuels available today. This is due to the superior (and still improving) technology, higher safety standards and the physical properties of NGV itself which makes it as safe or safer to use than petroleum-based fuels.

Frequently Asked Quetions (F.A.Q) :

1. Natural Gas for Vehicles (NGV)?
Yes! It is natural gas under pressure in cylinders, placed in your car boot compartment.

2. Can my petrol cost be really cut by half?
Yes! The price of NGV is only about half the price of petrol. Petrol price is RM1.20 per litre while NGV price is 56.5 cents per litre. So your petrol cost will definitely be cut by about half.

3. Will it affect my car’s engine?
Not at all! NGV is a clean fuel. It makes your engine run cleaner and quieter. So, definitely NGV can reduce your service maintenance bill.

4. But is it safe?
NGV has been in use overseas since 1945. Today, more than 1,000,000 vehicles use NGV all over the world. And there has not been any serious accident caused by NGV.

5. But what about the storage cylinders?
Unlike a petrol tank, the storage cylinders are so strong they can withstand direct impact from a car speeding at 90 km/hr or a small calibre bullet.

6. What about the gas inside?
The NGV inside is so much lighter than air, it just disappears into the air quickly in case of leakage. It also does not ignite easily.

7. Where do I refill NGV?
At any NGV outlet. Look for the NGV sign.

8. What about road tax for my car?
You get 25% deduction for your road tax. This clearly shows the Government’s commitment to NGV.

9. Can I use both - petrol and NGV?
Yes! You can use either NGV or petrol after fixing the NGV kit in your car.

11. One last question. Is it environment-friendly?
Yes! It definitely is! No black smoke! No lead! It keeps Malaysia’s air clean and people healthy.

There is no doubt that the declines in housing prices and stock market prices are a serious matter and that people will be impacted in various ways as a function of circumstance or because of their own actions and the potential impact on the economy at large could be unpleasant.

While I believe the above to be true it is also true that many people will not be materially affected.

If you have a loan you can afford and you want to stay in your house it is likely that a drop in your home’s value won’t matter a whole lot if at all.

My friend bought a house and he can’t imagine he could sell it today for what he bought it for six months ago. All things considered he would of course hope that the value did not go down (I am assuming it price is down somewhat but I don’t know with any certainty) but he can afford the housing loan and will keep the house.

If three houses on your block each sold for $500,000 a year ago you might assume that is what your house is worth but if you did not try to sell you really don’t know. You can only know the value of your house when you and a buyer meet on price. What your house might have been worth a year ago really means nothing.

If you own a house that you want to stay in you don’t need to worry about the value today you just need to make your payment (if you have one) and fix things that need fixing.

Think about your stock portfolio or unit trust investments now. At the end of December 2007 the KLCI was at 1445. Let’s suppose that between now and the end of the quarter KLCI experience a slight gain to close at 1300. If that happened the KLCI would finish the quarter down 11%. A person whose only exposure is a unit trust with a 70/30 mix would likely be down less than 11% for the quarter. If this same person does not follow the market at all and only checks his unit trust balance once a quarter he might be totally oblivious to what a wild ride this quarter had been.

As unit trust funds are investments with 3 to 5 years time horizon, you should only be bothered about the market correction phase as this is a time to overweigh your equity funds. I would suggest that you keep investing as getting better lower pricing of the unit trust funds will enhance your portfolio. And ‘wah-lau-eh’, imagine when the market finally recovers, your returns will likely to exceed the average returns of 8% to 12% per annum.

If you have the proper asset allocation (this is crucial!) a bad year is unlikely to really have anything more than a psychological impact. All of the gloom and fear that this time could be different.

You don’t need to worry about stock prices you need to focus on having enough money when you need it in the future. That means a lot of saving and a couple of prudent decisions along the way.

2008-03-27
New Straits Times

PUBLIC Bank Bhd will launch its new Public China Titans Fund (PCTF) on April 1, allowing investors to tap into the growth prospects of large-cap stocks in the Greater China region.

The new fund will be managed by its wholly-owned subsidiary, Public Mutual.

“Returns on funds that focus on large-cap stocks are more stable compared to small-cap funds as large corporations are better positioned to weather economic cycles due to their size and strong cashflow,” Public Mutual chairman Tan Sri Dr Teh Hong Piow said in a statement yesterday.

He said the Greater China region, comprising China, Hong Kong and Taiwan, offers a wide universe of large-cap stocks.

PCTF is an equity fund that seeks to achieve medium- to long- term capital growth by investing in companies with market capitalisation of RM10 billion and above, including in China-based firms listed overseas.

Teh said up to 98 per cent of the fund’s net asset value (NAV) can be invested in selected foreign markets which include Hong Kong, China, Taiwan, Singapore, the US and other approved markets.

“The equity exposure of PCTF will generally range from 75 per cent to 90 per cent of its NAV,” he said.

The initial offer price of the fund is at 25 sen per unit during the 21-day initial offer period from April 1 to 21. Minimum initial investment is RM1,000 and the minimum additional investment is RM100.

(c) 2008 New Straits Times.