It ain’t oRDinArY

A new (launched in Oct 08) revolutionary investment product was promoted by CIMB. I get to know of this product during some internet surfing and it sounds too good to be true. Since then, I’ve been looking to go to a CIMB branch for some additional info. Went to their branch in Sea Park and I have to admit that I’m quite surprise by the services given. As I’m just a small prawn in the big world of business, never has it cross my mind that the branch manager will waste 2 hours of his precious time briefing me about Max Investsave. After some deep thoughts, I made up my mind to put this apple into my retirement basket.

Why am I putting my money in here? What makes it sounds Too Good To Be True…

1. Maximum Returns: Profit will be based on the highest market price achieved during investment tenure, when the deposit is held to maturity. (Eg. You redeem your investment after tenure of 30 years: Highest RIV is 2.56 in year 2025. Therefore, you can redeem all your units in year 2039 based on RIV 2.56)
2. Flexibility: Deposit an amount as minimum as RM50. No penalty for early withdrawal (but this will deactivate the capital protection). 4 different tenures to choose from- 15, 20, 25, or 30 years.
3. Security: 100% principal protected upon maturity. Covered by the Malaysia Deposit Insurance Corporation.
4. Bonus: Bonus units are given for contribution during the promotion period. up to 30% bonus units.

An example of what you might gain with RM100 invested every month (except the last 5 years),  receive bonus units for first year and do not redeem before maturity.

The Catch:

Deposits must be held until maturity (15, 20, 25 or 30 years) if you want the payout based on highest RIV. Investments can be withdrawn anytime but it will only be converted back to your cash according to the current RIV. So, investors have to make sure they redeem only upon maturity to maximise profit.

Unknown details of investment. Due to the complex structure and attractiveness of this product manage by CIMB Invest, it is not made known to the investor which particular companies/funds/commodities invested in. The only thing being told is that it is invested in Equities, Commodities, Real Estate, Hedge Funds, Foreign Exchange and Money Market Instruments. And it’s Syariah-compliant.

For more info on this product, visit CIMBclicks

Just remember me when you’re rich 15, 20, 25 or 30 years later, kay?

Precast System

KUALA LUMPUR: Prefabri­cated parts will be used in all Government projects in a bid to reduce the dependence on foreign workers, Works Minister Datuk Mohd Zin Mohamed said. He said the move would begin with projects under the Public Works Department, which are worth RM6.9bil. The use of prefabricated parts was part of the Industrial Building System (IBS) which would be adopted for all Govern­ment projects.

“The Government has ordered all government agencies carrying out development and people’s housing projects to use at least 70% IBS content in those projects,” he told a press conference at his office after the weekly Cabinet meeting yesterday.

The Star, 25 Oct 08

IBS Score of 70. What does it have to do with us you might ask. IBS, in short for Industrial Building System is very much promoted by CIDB Malaysia. Basically, this system uses prefabricated elements in a construction project. These ranges from  precast systems, prefabricated roof structures, steel structures to steel formworks, reusable formworks, permanent formworks to element of vertical repetition, horizontal repetition and lots more. And don’t get me started on the Architectural part of it. Basically, everything that makes construction as simple as A,B,C. But is it good news?

I have witness the speed of IBS systems and one simple word explains it all. FAST! Conventional construction with timber formworks and cast-in-situ system just could not catch up with the speed of IBS. There will be a price to pay for it, but it is certainly good news for clients looking for a speedy construction period. The bad news about precast systems is that they are mostly only good for repetitive designs. Architects looking to have unique designs will have to make do with squarish type of buildings.

With Precast suppliers coming into the picture, there will certainly be a lot of alternative proposals to replace cast-in-situ systems. So, where will this leave the Structural Consultants? With a minimum of 70% IBS Standard being placed on all government projects, does it means that structural consultants only design for the 30%? Will Cast-in-situ systems be demoted to a secondary role applicable only at wet areas, multiple opening areas and irregular areas? That is something we have to ponder upon.

No such structure with IBS (unless you're cash & time rich)

Typical IBS Structure