Silver GST

Goods and Services Tax (GST) will be implemented with effective from 1 April 2015. GST rate is fixed at 6%. How will this affect your silver investment?

First of all, will GST be applied on silver? The answer is a clear YES, regardless whether you buy silver bar, silver coin or silver round.

Mr. Nur Hilmy Ahmad from Nubex Sdn Bhd (one of the largest gold and silver dealers in Malaysia) wrote to Jabatan Perlaksanaan GST and got a firm replied that GST will not be exempted from GST.

nubex silver gst

Is there any exception on products and services that do not need to pay GST? Yes there are…

According to NBC Group, GST is imposed on all goods and services produced in the country including imports. However, certain basic foodstuff likes rice, sugar, flour, cooking oil, vegetable, fish and meat, eggs and essential services such as health and private education, public transportation, residential property and agricultural land are not subject to GST.

GST will also not be imposed on piped water and first 200 units of electricity per month for domestic consumers and Transportation services such as bus, train, LRT, taxi, ferry, boat, highway tolls as well as education and health services are exempted from GST.

However, silver is NOT categorized into any of the above.

When your dealer(s) charge extra 6% on your silver purchase from 1 April 2015, they did not pocket the 6%. They are merely collecting in on behalf of the government.

So, do you buy more silver now (without GST) to avoid paying GST on silver after 1 April 2015?

That will depend where you think silver price is heading.

  1. If silver price rises much higher over the next few years, it is definitely a good idea to stock up more silver now to enjoy additional 6% profit;
  2. If silver price remains unchanged between $19/oz and $20/oz over the next few years, it is still a good idea to buy a few more ounces for 6% saving;
  3. If silver price drops more than 6% from current spot price, it will be wise to hold your purchase. A sample illustration as following: Current silver spot price is $20. If silver price drops 10% (more than 6%) next year, the effective cost for buying 1 oz of silver will be $19.08 even included GST ($20 – 10% + 6%). In other words even GST has been imposed, if silver price dropped more than 6%, you will still be paying a lower price compare to buying now without GST.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Top 3 Reasons Silver Rise in 2014

For investors who have invested in silver, surely you are aware that 2013 is one of the worst years for silver market. 2014 could be the year for silver price to rebound and here is the top 3 reasons:

1. Mining Cost

During the 3rd quarter of 2013, silver mining costs averaged $21.39/oz. In the past 2 months, silver has been fluctuating below $20.40 which is below mining cost.silver_60_day_o_usd

If it costs more to mine silver than the market is willing to pay for, eventually the producers will stop producing silver. A logical question to ask is why would someone spend RM1.00 to produce a product that can only be sold for RM0.90?

Ironically, this is what exactly happening in silver market. These are the type of situation value investors dream of because it allows them to purchase silver at a great discounted price. Such environment (below production cost) cannot last for long time because it does not make sense to produce anything to sell it for lower than production cost. Eventually silver supply will be cut, then scarcity, and eventually silver price will jump.

2. Technically oversold

The bull market of silver started at the end of 2001. From $ 4.02 to recent all-time high of $48.42 (increase of 1,104%). Several significant corrections took place. The most severe one was in 2008 when the silver price dropped by 57% then to jump 441% to a new all-time high.


As shown above, silver price is in an oversold position. The situation is worse than in 2008 or in 2001. Such positions have always been followed by strong upward movements. After 2008, silver rose 441%. Some precious metals (gold and silver) shares even jumped 2,800%!

However, do not get overly excited with shares profit. Gold and silver stocks are more volatile than the real gold and silver. During uptrend, the profits soared higher; during downtrend, the losses would also be more significant. If you are new to precious metal investment, it is best to buy the metal itself than to buy the companies that owns the metals. It is hard work to select the right companies and to monitor them. You need to know the company management and understand their long term plan. That potentially makes your silver investment more complicated than necessary.

3. Asia Demand

India and China continue to be the largest buyers of gold and silver in the world.


In 2013, India government has made several attempts to slow down demand for gold. India government increased import taxes to 10% for gold bullion and 15% for gold jewelry. That has resulted Indians to move their attention to silver. Between Jan and Sep 2013, silver imports to India totaled more than 4,000 tonnes, already more than whole year of 2012. Silver imports jumped 40% from 241 tonnes (in Sept 2013) to 338 tonnes (in Oct 2013).


When China government is urbanizing 250 million citizens, that will require a lot of copper and other commodities. The government continues to source for renewable energies, which means an enormous push for photovoltaics and physical silver. Enormous demand for physical silver will be required by photovoltaics that will come from China and Japan.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Silver Had A Terrible Year 2013

Silver had a terrible year in 2013. Silver price felt 36% in 2013. It started off with $30.11 and closed at $19.41.


PricewaterhouseCoopers (PwC) conducted a survey on investors’ expectation on silver price for next 12 months in 2014:

  • 53% said they expect the price to increase
  • 38% expect it will remain at current levels
  • 9% predict a further decline in price.

Download the full report by PwC.

Silver is a multi-purpose metal. It acts as both a currency and an industry commodity for investors. Silver has a wide-range of applications such as jewelry and medical equipment. The price of silver dropped 36% in 2013. Starting the year around $30/oz and felt to $19/oz. Silver hit an inflation-adjusted record of just under $50 in April 2011. Oversupply of paper silver is partially to blame for the drop in silver price in 2013. Its correlation with gold as a store of value for some investors has contributed to its price depreciation in recent months.

Also, be sure to check out last week article: Top 3 Silver Investment Recap in 2013 >>>

In investment investors do not expect to make money right after putting in the capital. There will be up time and there will be down time. Apparently 2013 happens to be one of the bad year for silver.

If you have been holding on your purchase and wondering if this is the right time. Remember that you are getting a 36% discount compare to those who have invested 12 months ago.

In fact, if you use a longer time frame back to April 2011 when price was almost $50, you are now getting a 60% discount!


Is now a good time to invest? Will price drop further? Unfortunately I do not have the crystal ball and I could not predict the future. All I could do is show you the facts and you have to make the decision.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Top 3 Recaps Silver Investment 2013

2013 has came to the end. Silver price has not been particularly exciting this year. Here are the top 3 events worth noticing:

1. April Price Drop

On 12th April 2013, silver price broke support at $26. $26 has been a strong support in the past. When silver price broke a strong support, the support will then become a strong resistance in the future. During this drop, some investor got panic because a strong support is broken. Most investors took this opportunity to buy silver at a discounted price.


2. American Silver Eagle coin sales created new record high

American Silver Eagle (ASE) coin sales is a good indicator to gauge investment demand for physical silver. The coin has a beautiful design yet the premium is relatively low among the other coins. That made ASE became a highly demanded silver coin in the world.

In 2013,  American Silver Eagle coin sales has created all time high sales record. Despite bearish silver price movement in 2013, physical demand for American Silver Eagle coin remained strong.


3. 2014 silver price outlook

Technically, silver market is not over by looking at the major uptrend lines. The fundamentals continue to build in a favorable way for silver. The facts remain that gold is moving to China and India at rapid rate, Germany only received a fraction of their gold back. It will take another six years before the New York Federal Reserve will finish their delivery.

2014 will be a rebuilding year for silver to regain strength but not significantly. This is due to the ongoing currency debasement and the coming economic crisis. It is usually wise to buy when the markets are quiet and when investors are pessimistic.

Silver price is expected to be traded between $19 to $26. It might take several attempts to to break $26 before hitting $30 mark. However, it is always possible that something could take place to shift market sentiment overnight.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Did Silver Price Drop

The Federal Reserve announced last Wednesday (18th December) it would start to taper the aggressive bond-buying program from $85 billion to $75 billion a month beginning in January 2014.

In layman terms, it means Federal Reserve is suggesting they are going to slow down money printing because the economy is recovering. They are going to print less of $10 billion each month starting January 2014.

Silver price has dropped as a reaction to the announcement:


Some investors who have been waiting for the perfect time to buy silver have decided to make a move to purchase silver. However they are surprised that silver price did not significantly dropped in their final purchase price (in Ringgit).

The reason is because when Fed announced US economy is recovering (by tapering QE), that also means USD will be strengthen. Unless Ringgit was still peg to USD, a strengthen USD basically means a weaker Ringgit.

Exchange rate went up to as high as $1 = RM3.2970 last week


Ideally when silver price drops, investors would be able to buy silver with lower cost. However, during this drop (driven by strengthen US economy), USD value went up and have off set the final purchase cost in Ringgit.

Compared to other investment class (such as shares in KLSE or property in Klang Valley), silver has an additional variable which is currency exchange rate. When you approach your local silver dealers, some will factor USD/MYR exchange rate into final selling price while some would not. A lower silver spot price in the international market does not always guarantee a lower silver price in Malaysia.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Pay First, Send Later

One of the most cost effective methods to purchase silver is purchasing from online sellers. Precious metal online sellers could range from a company that has a physical setup (office), to someone who someone who sells silver as a part time job – running it at the comfort at his bedroom.

If you recently started buying silver online, you might have a question in mind. Should you pay the seller first? Or the seller should send you the product (silver) first?

Pay first, send later

Either way there are risk to both parties.

If buyer pays first, buyer is putting his money at risk. What if the seller disappears after collecting the money?

If seller sends first, the seller is putting his silver at risk. What if the buyer disappears after collecting the silver?

It is really a chicken and egg situation.

If the seller has a website (eCommerce) that can receive order, the transaction becomes easy and clear cut. When a visitor visits a website, he sees a products that he would like to buy, he clicks on the “Buy” button, enter his details and confirm the order. He can perform the payment online within the website. The payment gateway would typically be direct debit (such as Maybank2U, CIMB Clicks, etc), iPay88, PayPal and offline bank deposit.

In this case, as long as the payment is not received, the seller would not ship out the silver. In fact, if the buyer has selected offline bank deposit as the payment method and did not pay within certain period of time, the order will be voided. This period of time varied for different sellers. The period could be anything in between 2 hours till the next few days.

There is another type of seller that do NOT have an eCommerce website to facilitate the transaction.

This type of sellers are usually individuals. They usually place their margin a little lower, to attract buyers who look for lowest selling price.

If you are buying from individual sellers, there are rooms for negotiation – especially when you are buying large amount of silver. The communication is often done through private message, SMS, email or even phone call. This is where things started to get interesting.

Some buyers would demand seller to ship out the product before depositing the full amount. A minority of sellers would agree to this practice while most would not.

The standard transaction process is always the buyer pays for the silver he wishes to purchase. Then seller would ship out the silver. There is no such rule as “Send first, pay later”. Online transaction is always “Pay first, send later”.

There might be an exception if both the buyer and seller has established a trusting relationship and the seller is willing to bear the risk.

Personally I have done it a few times with seller whom I have been buying from for a long time. I needed the stock urgently. The seller offered to send the stock before receiving the full amount. In return, I offered to maxed out my online transfer limit as deposit and then paid the remaining with cheque on the next working day.

This example is an exception case. Most of the silver transactions I had is still “Pay first, send later”.

The standard policy for silver transaction is “Pay first, send later”. This happens in both eCommerce platforms and individual sellers. If this is the first time you are buying silver and wondering whether the seller should send first, or you should pay first, the answer is “Pay first, send later”.

However, if you feel “Pay first, send later” is a risky move, you can consider the following:

  1. Only buy from reputable online sellers
  2. Only buy small quantity to “try” out a seller
  3. Request seller for COD (Cash on Delivery) instead of online payment and postage.

I will discuss more on COD (Cash on Delivery) on next week post.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Review on

Many readers have been asking my opinion on whether the company is reliable. This post provides a detailed review on

Before we get started with buying precious metal from, let’s do a little background check. As a general rule, the first hint to check whether a website is reliable is to look at when the website was registered. The fact that a website has been operating for years and has little negative feedback, the less likely it is a scam. In other words, the older a website is, the more likely the website is credible.

Review on domain

We can tell that has been operating since 2011. The website is owned by Rolling Silver Holdings Sdn Bhd and the business is operating in Puchong, Kuala Lumpur. Nothing surprising but we now know that has been in the market for years and it is not a random guy who just started selling precious metal last month.

Review on – buying precious metal

When you first open up, you can expect a large slider banner which covers a big portion of your screen.

Review on Main Page

At first glance, the eCommerce store looks elegant. You will not see a large collection of product for sales on the home page. You will have to either click on one of the banners, OR click on the “Products” link (top left) to view the full range of product offered by

The “Products” link in sitting at the top left corner and is not particularly attention catching. Visitors who are not used to exploring website might have a little challenging time to identify where to look for full range of product. If this is your first time visiting, be sure to click on the “Products” link to view the full range of product.

For this review purpose, I will be using a 5-gram gold bar as an example. If you are interested to purchase silver, the process of buying a piece of silver will be identical to buying a piece of gold.

Review on Gold Menu

Once clicked on Products > Gold Bullion > Gold Bar, I was redirected to a page with wide range of gold bar. I clicked on “PAMP Suisse Lady Fortuna 5 gram 999 Gold Bar” as the product I would like to purchase.

Review on gold product range

Then, I was brought to a page where I could add the product (and quantity) to my shopping cart:

Review on PAMP Suisse Lady Fortuna 5 gram 999 Gold Bar

I entered quantity ‘1’ and clicked on “Add to Cart“, the screen was updated. I got an notification that my “PAMP Suisse Lady Fortuna 5 gram 999 Gold Bar” has been added to my shopping cart.

Review on added to cart

What worth mentioning is the Live Pricing feature offered by Not many online dealers have Live Pricing that allows customers to buy precious metal closest to spot price. Most dealers are adjusting their pricing on daily basis or during a big fluctuation in spot price. deserves a thumb up for this thoughtful feature.

I clicked on the “Checkout” button and I was redirected to a page to review my order.

Step 1: Review Order

Review on - Step 1

If you are an existing member in, simply click on the “Member Checkout” button to login and continue your order. Else, if this is your first time buying from, you can always use “Guest Checkout” button. I used the “Guest Checkout” option in my purchase.

Step 2: Address

Review on - Step 2

In this page, I filled up the billing and shipping address for the product I have just ordered. Since my billing address and shipping address are the same, I clicked on the check box “Use the same address for both billing and shipping“. All address column values on the left were populated to the right. Upon completed filling up my address, I clicked on the “Continue” button that could be found at the bottom of the page.

Step 3: Make Payment

A message box from the web browser popped up to show me that my order price has been changed.

Review on - Price updated

The price was 768.25 and got changed to 768.45. The reason is when I was filling up addresses (in Step 2). Gold spot price changed and the price got reflected immediately on my order. I’m pleasantly surprised by how efficient Live Pricing worked.

Review on - Step 3

The only thing that got a little annoying is the long list of payment options (banks) provided on the right panel. I have to scroll all the way down to find the “Place Order” button.

Review on - Place order!

I selected “Bank transfer” option using Maybank to enjoy 3.5% rebate. Who doesn’t like saving anyway?

Step 4: Thank You

Once clicked on the “Place order!” button, a thank you page was displayed to remind me to bank in the order amount within the next 2 hours.

Review on - Step 4

At the same time, I also got an email notification that my order has been received by

Review on - Order received

Later of the day, I received another email that my order has been confirmed and is being processed.Review on - Order Confirmed

I placed my order on Friday afternoon. An order confirmation was received on the same day evening. Then a shipping notification was received on Tuesday.

Review on - Order Shipped

On Wednesday evening, I received my gold bar!

Review on - Package 1

Review on - Package 2

Review on - Package 3

Review on - Package 4

Review on - Package 5

That’s it! My “PAMP Suisse Lady Fortuna 5 gram 999 Gold Bar” has arrived safely.


The process of buying from is pleasant. As much as I’m happy with the whole process, I will highlight a couple of pros and cons during my shopping experience with


  1. The web store is a professional eCommerce site. Shopping cart is in place to handle variety of product in one order. Operating 24 hours 7 days a week.
  2. Live Pricing is a plus point that impressed me.
  3. Payment gateway is well integrated with iPay88 and PayPal. However I believe most buyers would prefer bank transfer to enjoy the additional 3.5% rebate.
  4. Delivery packaging is in superb quality.


  1. I placed the order on Friday. I would not expect my order being processed and sent out on the same day. I did expect it being processed on the next working day, which is supposed to be on Monday. However I only got a shipping notification on Tuesday. One day off my strict expectation but it is still within a reasonable time frame.
  2. Usability of the website has room for improvement. For example, in order to reach to the full range of product, I have to click on the small “Products” link on top left corner. I have no idea where the overlapping banners will bring me to until I placed my mouse on the banners and clicked on it. Another example is the long list of bank during Checkout which made the “Place Order!” button not obvious. is one of the best online dealers I have dealt with. The company is reputable and the website comes with good security features. There is no mistake happened throughout my entire purchase process. The order was processed within a reasonable time frame and packing quality is perfect. Definitely a thumb up from a happy customer!

Hope you have enjoyed and find this review on useful!

Silver Malaysia eBookTo find out more reviews on other precious metal dealers in Malaysia. Please check out Practical Guide For Investing Silver In Malaysia, an eBook specifically written with a Malaysian’s context for silver investment. Click here to find out more.

Undying Chinese

People’s Bank of China has announced it is not the best interest to continue buying more US dollar. Currently China is already the world’s largest in US dollar purchaser. China will cap its purchases of US dollars in an effort to limit the depreciation of the Yuan. The value of any currency in the world depend on the demand from other countries. Although China has not specifically mention a time frame to pull the plug, this decision from China will practically put US dollar into a worse condition.

YiGang“It’s no longer in China’s favor to accumulate foreign-exchange reserves”, said the PBOC deputy governor Yi Gang (19th November 2013) bluntly during a speech at Tsinghua University for China Economists 50 Forum.

In less than a week before the statement, Zhou Xiaouchuan, the governor of China’s central bank has also announced that PCOB would slow down on the Yuan’s pegging to US dollar. Without pegging, Chinese Yuan is potentially to appreciate 2% in a day!


In Q3 2013 alone, China bought $166 billion US dollar reserves. As a matter of fact, China currently holds $3.66 trillion in US dollar reserves in total, which is more than 3 times that of any other countries.

China is also the largest holder of US debt, currently holding nearly $1.3 trillion in U.S. Treasury bonds.

This is a very funny video to explain relationship between China and US.

In economic fundamental, weaker US dollar means higher silver price – but is that so?

silver_1d_o_USDContinuing a down trend started last week, silver has spent the entirety of last week under $21/oz. In fact on last Friday (22nd November 2013), silver price was traded below $20/oz almost the whole day. Silver price is likely to get even lower before price start picking up.

Silver hit $20.75, its highest price thus far last week on last Monday morning, and began to fall not long after that. By noon, the precious metal was sitting at $20.34. By the end of the day silver price had sunk as low as $20.22, which is the lowest price since 9th August 2013.

Last Tuesday was a quieter day for silver. Silver price was traded between $20.22 and $20.48. However on Wednesday had more declines. Although silver began the day not far off from its price range the previous day, it had sunk to $20.12 by mid-morning and reached $19.83 by mid-afternoon.

The reason for silver price declined is due to the release of minutes from the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting. Interestingly, FOMC showed that the Fed will continue quantitative easing “at full force”, but at the same time tapering is “in the cards relatively soon”.

These are 2 contradicting directions but the latter appeared to have a more significant effect on silver price.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Silver in Medical

Most people know silver as a form of investment. Apart from investment purpose, silver has wide industry application.


Health Care

Silver has a long history of being used as medicine. Hippocrates, also known as “the father of medicine,” discovered silver healing and anti-disease properties. During World War I, before the invention of antibiotics, silver was an important medical weapon to fight against diseases on the battlefield. In modern days, silver is added to bandages, wound-dressings and other medical instruments and is a key part of the technology behind X-rays.


The ancients keep water, wine and vinegar in silver vessels to ensure freshness. Silver is able to remain the freshness by interrupting the bacteria cell’s ability to form the chemical bonds essential to its survival. These bonds produce the cell’s physical structure so when bacteria meets silver it literally falls apart. For this reason, silver enforced bandages are especially in demand. Bandages with silver ions prevent bacterial growth and speed healing time, making them especially valuable for treating burn and wound victims.

Today, consumer healthcare companies like Johnson & Johnson and others offer their own lines of bandages and ointments that use silver as an active ingredient. Silver has actually been proven to promote the growth of new cells, thereby increasing the rate at which wounds can heal.

Silver in Nanotechnology

For the last 120 years, the field of nanotechnology has been devoted to researching and developing new uses for colloidal nanosilver. Nanoscale silver particles have been used in pigments, photographics, wound treatment, conductive/antistatic composites, catalysts, and as a biocide. Its biocidal applications are among the most studied today.

Silver’s antibacterial qualities have applications that reach far beyond the medical world. Washing machines, refrigerators, air conditioners, air purifiers and vacuum cleaners all rely upon silver nanoparticles to sterilize up to 650 types of bacteria. Nanotechnology is still at a very early stage in terms of its usage. The full extent of its application remains to be seen but scientists and consumers are hopeful regarding the environmental implications of nanotechnology.

As a side note, on 3rd November 2013 I mentioned American Silver Eagle sales will be making new sales record, surpassing the all time high in 2011.


American Silver Eagle coin is a fairly good indicator to identify the demand for physical silver in investment. The coin is both low in premium and has a beautiful design. American Silver Eagle coin is the perfect silver investment coin. From this chart, we can tell that physical silver demand has been increasing every year since 2007, except 2012 which is not falling too far behind.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Credit Card Malaysia

3 Steps to Understanding Your Credit Card Interest Rates

Have you ever tried to fall asleep in a room with a lone mosquito trying to have its way with you? There you are, the epitome of evolution, unable to sleep due to a single petty insect. That’s sort of like how your credit card interest rates work.

They might seem small and insignificant – come on, what’s 8%, 10%, even 15% interest, right? – but in reality, their impact is huge. This contradiction is what causes confusion among credit cardholders. Luckily, it’s relatively easy to understand your pesky interest rates:


First: Figure Out How Much Interest You Get

Credit card interest rates in Malaysia range from 8% to 15%, depending on two main factors:

  • The bank or provider
  • Your credit score

The card provider will of course have the final say on your interest rates, but they will base it on your credit score. The higher your credit score, the better your interest rates will be. Keep in mind that each bank or provider might interpret your credit score differently, so, again, different providers might offer different rates, though they’re all referencing the same credit score. Yours.

So before you go and apply for a credit card, make sure to explore all options and find the best deal for your situation. One of the most highly recommended credit cards in Malaysia is the Maybankard 2 Cards Platinum American Express, which can be paired with a Visa and MasterCard. There are no annual fees for life on this credit card, and it offers excellent cashbacks, at no conditions. You can use the card on any shoes, fashion, and IT outlets that accept American Express cards.


Second: Understand (and Avoid) the Interest Domino Effect

The first part isn’t so bad; you just need to compare credit cards and see which provider likes your credit score the most and go with them. When you finally have your credit card, however, things get a bit more complicated.

Two major aspects lead to credit card overspending:

  • The ease and convenience of having a piece of plastic to swipe and voila! Bills paid!
  • The fact that you don’t see the money changing hands.

This means that not only do you have easy access to funds, but you also never physically see those funds and it would be harder to keep track of your spending. Then, there’s the interest.

Your interest may seem forgivably small, but it can easily snowball into a nightmare of debt and constant repayment. Take a look at this vicious cycle:

You pay for say, a new Apple gadget you’re charged interest you pay for part of your bill the debt left is carried over and MORE INTEREST is piled on top of it rinse and repeat.

See what’s happening here? Since you overspend, you can’t pay your entire bill. Since you can’t pay your entire bill, you get more interest to pay off the next time you pay part of your bill. In the end, you did not just pay for the total amount of the Apple gadget plus the 8% to 15% interest, you pay the 8% to 15% interest multiple times on different amounts.

You may not know it but most banks in Malaysia usually require only a minimum monthly payment of 5%. If you do however, pay only the minimum amount, you incur interest known as financial charges based on an interest rate structure that may look like this:

Tier 1 13.5% per year
If you pay credit cards on time for 12 consecutive months

Tier 2 – 16% per year
If you pay credit card bills on time for at least 10 out of 12 months

Tier 3 – 17.5% per yer
If you pay credit card bills on time for at least 9 out of 12 months

The above figures are as recommended by Bank Negara Malaysia and tiered interest rates could vary with every bank. In essence though, every time you fail to pay the full monthly amount due you incur higher credit card debt at the end of the year!


Third: Keep Abreast of Special Cases Concerning Credit Interest Rate

Much like spending time in jail where you can be released early if you behave well, your credit card provider in Malaysia may also consider your credit card use history and lower you interest rate after a specified and agreed upon period of time. The key is to know the specifics. Also, you might want to check out promotions where providers don’t charge interest for a period of time after a purchase as well as similar agreements.

A sound piece of advice: don’t ignore that mosquito. Compare credit cards in Malaysia, understand the facets of your interest rates, and most of all: spend wisely.


Credit Card Malaysia – Written by CompareHero (, one of the leading financial comparison portal in Malaysia. We aim to guide people on their financial matters, and help them to save money and time. Please do check our website to learn more.