MAKE SOME INCOME (By Nik Zafri)

The strategies employed to invest and increase income are often complex and multifaceted when it comes to "practical".

However, I found some common themes emerge all the time which I sum up as the core investment strategies.

1) Diversification

Spreading investments across various asset classes (stocks, bonds, real estate, commodities) to reduce risk is one good move.

2) Long Term Perspective

Always focus on building income over time rather than quick gains. In short, greed will make you lose, so be patient.

3) Leverage

When you borrow, increase them on potential returns - it's risky but once you strike, it's worth. You can also get ASB loan and let them invest or reinvest for you. In the long run, you might get handsome returns

4) Get a good advice

Although Warren Buffet might not agree with me, but if you can afford it especially when you have no experience, it's logical to employ financial advisors or wealth managers to handle investments.

5) Always pay tax but optimize them

Draw up a good strategies to minimize tax liabilities but never avoid from paying tax

There are quite a number of investment vehicles.

1) Stocks and Bonds

Investing in publicly traded companies and if you have heard of government debt, go for them.

2) Real Estate

Own properties for rental income or appreciation.(REIT)

3) Private Equity and Venture Capital

Investing in startups and private companies.

4) Hedge Funds

Pooled investment funds that use various strategies to generate returns.

Alternative Investments can be purchase of assets like art, collectibles, and commodities.

Additional Soft Income-Building Sources

1) Business Ownership - Creating and growing businesses.

2) Intellectual Property - Developing and protecting patents, copyrights, and trademarks.

3) Inheritance - if you come from a rich family.

4) Risk-Taking - Pursuing high-reward, high-risk ventures.

5) Networking - Building relationships with influential people.

Also, think the way successful people think.

You must have access to information for e.g. exclusive investment opportunities and market insights

You must adopt a risk tolerance attitude - allowing yourself to pursue higher-return investments.

Have a long term perspective (Time Horizon) - enabling yourself to weather market fluctuations.

Good luck, just sharing my perspective from my so-called research. No guarantee of success unless you really work hard and do not let failure stop you. Remember, investing involves risk, and past performance is not indicative of future results. Just conduct thorough research or consult experts before making investment decisions.

GLOBAL FORUM ON ISLAMIC ECONOMICS AND FINANCE

Officiated by YAB Dato’ Seri Anwar bin Ibrahim, The Prime Minister of Malaysia - who also deliver a speech on Global Islamic Economy: A Reform Agenda for Shared Prosperity

Would like to thank the organizer Bank Negara Malaysia in collaboration with the Securities Commission Malaysia, Labuan Financial Services Authority, the IILM - International Islamic Liquidity Management Corporation, the Islamic Development Bank (IsDB), the Islamic Financial Services Board (IFSB) and the The World Bank Group - for having us who are representing the grassroots, community and small people hoping to get some briefing from us after the event.

(Personal Note : also would like to thank many colleagues who have been great supporters to me as well)

Themed ‘Shaping a Resilient Global Islamic Economy Through Values-based Reforms’, #GFIEF gathers policymakers, business leaders, and financial service providers from all around the world to engage in discussion and collaborate to build a future where Islamic economics and finance can play a pivotal role in fostering shared prosperity and equity.

Encountered distinguished figures such as Datuk Abdul Rasheed Ghaffour, the Governor of Bank Negara Malaysia, who delivered the keynote remark, alongside esteemed individuals like Tan Sri Nor Mohamed bin Yakcop, Tan Sri DS Wahid Omar, and senior corporate leader Tan Sri Dato' Azman Mokhtar and many others. Also in attendance were Yang Mulia Ungku Tan Sri Dr. Zeti Akhtar binti Ungku Abdul Aziz (Dinner), YBM Senator DS Utama Tengku Zafrul Aziz, Dato' Seri Dr. Awang Adek Hussin, and numerous others. Among the honored guests was Her Excellency Sri Mulyani Indrawati, the Minister of Finance from #Indonesia.

It was a remarkable opportunity to engage with eminent Islamic scholars and guest speakers, delving into comprehensive discussions and analyses of various aspects of Islamic Economics and Finance. Among others are Dame Susan Rice and Dr. Giath Sabsigh. Also met Tan Sri Andrew Sheng and many others.

Attending the exhibition was always a highlight for us, offering valuable connections with diverse banking and financial institutions.

(Interestingly, I met the son of my esteemed cousin, who is employed in the field - well it runs in the family - can't mention names due to privacy)

Malaysia can now proudly proclaim as the leader in Islamic Economy and Finance, (apart from Halal products/Islamic Banking) Most important to us is the emphasis placed by everyone on addressing the crucial issue of bridging the gap between the affluent and the underprivileged.

Key themes that resonated with me included Maqasid Shariah, Sukuk, Equity, Inclusivity, Advancements in Islamic versus Conventional Economics and Finance, Bursa Malaysia and emerging Shariah-compliant exchanges, Zakat and Waqf, Islamic Financial Standards, Guidelines, Policies, White Papers, Utilization of AI, and Islamic Payment Gateways, among others.

DSP # 7 Public-Private Partnerships: Key Component to Creating A Mature Data Ecosystem - (in my view - Nik Zafri)

It was an incredibly enriching and valuable discussion. Both the speaker and moderator were exceptional. The Q&A segment was especially captivating, allowing for a fantastic exchange between myself, the moderator, and the passionate, deeply knowledgeable speaker, Mr. Ivan Mortimer-Schutts, showcasing his extensive experience in the field through thorough and passionate discussions on various topics.

I am particularly interested in the topics such as :

Fostering collaborations between governmental bodies and the public (with universities also playing a significant part) to promote conscientious data sharing involves multiple facets: creating awareness and educating the public. This effort necessitates establishing collaborative structures. Additional factors to consider encompass privacy and security concerns, policy formulation, engagement strategies, feedback mechanisms, ethical frameworks, incentivizing responsible data sharing, addressing challenges, and harnessing expertise to implement responsible data-sharing practices.

I observed the impending necessity for Malaysia to establish a civic society-focused entity dedicated to enhancing awareness regarding data, which would play a pivotal role in promoting responsible data practices. This organization would engage in educational and advocacy efforts, regulatory framework establishment, guideline formulation, governance, fostering data literacy, and providing legal support, especially for marginalized groups. Such an entity has the potential to empower individuals, foster trust, encourage dialogue, wield influence, stimulate economic growth, prevent misuse, and ultimately cultivate a culture of responsibility. However, there is a need for further research into successful models and case studies from other nations to adapt and tailor them to suit the Malaysian context.

Common concerns have also been addressed but suffice it to say, you can refer to this article of mine to know more.

https://nikzafri.blogspot.com/2023/11/concerns-on-national-data-sharing-policy.html

Good job Malaysia Digital Economy Corporation (MDEC), Malaysiakini BM , Digital News Asia and the Government of Malaysia.

CARBON CREDIT - Basic Understanding - by Nik Zafri

Question : Mr. Nik, I saw your YouTube video on Industrial Symbiosis. Are you familiar with carbon credits and its process such as application etc. (Top management of MNC)

Organizations can apply for carbon credits through various processes that are typically part of carbon offsetting programs. Carbon credits are a key component of national and international emissions trading schemes that aim to mitigate the effects of climate change.

Not limited to the following; where applicable and customized to the nature of industry; here are the general steps that an organization can follow to apply for carbon credits (exclude any elements where necessary) :

1.0  Measure the Carbon Footprint

The first step for any organization is to calculate its carbon footprint. This involves assessing the amount of greenhouse gases emitted directly and indirectly from its operations, including energy use, transportation, waste generation, and other relevant activities.

Calculating your carbon footprint involves assessing the amount of greenhouse gases, primarily carbon dioxide, that you directly or indirectly produce. The carbon footprint is usually measured in units of carbon dioxide equivalents (CO2e). Here's a general approach to calculating it:

a. Determine the Scope of Your Calculation

There are typically three scopes of emissions that you should consider:

1. Scope 1: Direct emissions from sources that are owned or controlled by the entity (e.g., emissions from vehicles you own).
2. Scope 2: Indirect emissions from the generation of purchased electricity consumed by the entity.
3. Scope 3: Other indirect emissions, such as the extraction and production of purchased materials, transportation-related activities, waste disposal, and so on.

b. Calculate Home/Office/Site Energy Use:

Determine your energy use including electricity, heating, and cooling. You can usually find this information on your utility bills. Use conversion factors to convert the energy use into CO2e emissions.

1. Transportation: Calculate the emissions from transportation activities. This includes vehicles/machinery fuel consumption. Use standard emission factors for different modes or types of vehicles to convert the activities into CO2e emissions.
2. Dietary/Food : Consider the carbon footprint of one's diet, including the emissions from the production, transportation, and disposal of the food consumed. This can include both the food itself and its packaging.
3. Other Consumption Habits: Assess the emissions associated with other consumption habits such as clothing, electronic devices, and other products. This involves considering the emissions associated with the production, transportation, and disposal of these goods.
4. Offsetting Activities: After calculating the carbon footprint, consider offsetting some or all of the emissions by supporting projects that reduce or remove greenhouse gas emissions, such as reforestation, renewable energy projects, or carbon capture and storage initiatives.
5. Use Carbon Footprint Calculators: There are several online carbon footprint calculators available that can help estimation of carbon footprint based on the data provided. These tools make it easier for businesses to estimate their emissions.

By following these steps, companies can get a general idea of the carbon footprint. Reducing the carbon footprint can involve various lifestyle changes, such as using more energy-efficient appliances, using public transportation, reducing meat consumption, and supporting sustainable products.

2.0  Implement Carbon Reduction Strategies

After identifying the sources of emissions, organizations should implement strategies to reduce their carbon footprint. This can include adopting energy-efficient technologies, using renewable energy sources, optimizing transportation, and improving waste management practices.

e.g. adopting an environmental management strategy; avoid unnecessary printing; recycle; incentives for public and sustainable transport; reduce energy consumption, and define renewable energy use targets.

e.g. Energy Efficiency

Implementing energy-efficient measures, such as insulation, efficient HVAC systems, and LED lighting, can significantly reduce energy consumption and operational carbon emission

3.0  Assessment and Certification

Scheduled or non-scheduled inspection, risk assessment and internal audit should be conducted by the organization. Auditors should possess the necessary training, competency and experience without elements of partiality.

3rd party audit will look into :

e.g. wind or solar farm - to ascertain actual generation and renewable energy are measured including emission of Greenhouse Gases (GHG) such as Water Vapour (H2O), Carbon dioxide (CO2), Methane (CH4), Ozone (O3), Nitrous Oxide (N2O), Chlorofluorocarbon (CFC), Hydrochlorofluorocarbon (HCFC), Carbon tetrachloride (CCl4)

Organizations can get their emissions reduction projects certified by accredited certification bodies or relevant agencies. The certification process typically involves verification of the emission reduction methods and the actual reduction achieved. Common certification standards include the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), and Gold Standard.

4.0  Apply for Carbon Credits

Once the emission reduction project is certified, the organization can apply for carbon credits. This involves submitting the necessary documentation and data to the relevant carbon credit registry or authority. The application process may vary depending on the specific requirements of the carbon credit program or market.

5.0  Verification and Validation

The carbon credit application is usually subject to verification and validation by independent auditors or certification or regulatory bodies. This step ensures that the emission reduction claims are accurate and meet the standards set by the specific carbon credit program.

6.0  Issuance and Trading

Upon successful verification, the organization will receive carbon credits for the verified amount of emission reductions. These carbon credits can then be traded on the carbon market or used to offset the organization's own carbon footprint. Organizations can sell their excess carbon credits to other entities looking to offset their emissions.

7.0  Compliance and Reporting 

Organizations are often required to comply with reporting requirements, providing regular updates on their carbon reduction efforts and the utilization or trading of carbon credits. Compliance helps ensure transparency and accountability in the carbon credit market.

It's essential for organizations to stay informed about the evolving standards and regulations related to carbon credits, as they may vary across different jurisdictions and markets. Engaging with experienced consultants or carbon management firms can also help streamline the process of applying for and managing carbon credits.

In Malaysia, Bursa Carbon Exchange ( BCX ), Malaysia’s voluntary carbon market (VCM) exchange, is part of the nation’s commitment towards achieving net zero greenhouse gas (GHG) emissions as early as 2050.

BCX is a spot exchange that facilitates the trading of high-quality carbon credits via standardised carbon contracts. Corporates may purchase these credits to offset their carbon footprint while the sale of carbon credits, in return, will help to finance and drive the development of domestic GHG emission reduction and removal solutions and projects.

Please contact Bursa Malaysia and BCX for more information

BAILING OUT TROUBLED CORPORATIONS IS NOT THE RIGHT ANSWER - THOUGHT FOR THE DAY BY NIK ZAFRI

 Bailing out troubled corporations is not the right answer. Most of the money is used for shares buyback - hence not helping with the employment prospects or development. Regulations must be improved to limit shares buyback. Get them to commit using the money for employment opportunities/development as well.

SOMETHING IS HAPPENING IN MALAYSIA RETAIL SECTORS - SELF ANALYSIS BY NIK ZAFRI

 ("stories"" from the marketplace - these are just a self analysis)

Major retail sectors (including big names/brands) in Malaysia are experiencing great turbulence especially post pandemic are still haunting them.

Retail sales are dropping badly, layoffs are slowly happening, signs of inflation, branches are closed, public listed ones are reentering PN17 despite great CDR plans, high operation cost, big lawsuits, failure in seeking new buyers/investors for takeover, failed rebranding - even the ratings are low.

I wouldn't mention names - those that I've identified facing problems are department stores, fashion/apparel/footwear and furnitures.

Surprisingly the ones that I never expected are low budget marts (RM2/3 ringgit shops), makeups/personal care, Coffee beverages/baked goods and grocery stores.