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Wednesday, May 25, 2016

Parents opt for daycare centres with no live-in maids now

The decline in the number – and the rising cost – of domestic maids has forced more young, working parents to send their children to daycare centres.

Daycare Centre

Chris Hong, who runs two kindergartens-cum-daycare centres in Subang Jaya, said she and her staff looked after 40 to 50 children from 8am to 7pm daily.

The centres, which only cater for two-month-old babies to children aged six, provide lunch, homework coaching and other activities in the afternoon after the kindergarten session.

“There are even parents-to-be who register at the centre even when they are in the early stages of pregnancy.

“There is very high demand now and parents are looking for safe and trustable daycare centres,” said Hong, adding that she did not plan to set up more daycare centres as she wanted sufficient quality time with her three children.

A daycare centre operator on Penang island, who wanted to be known only as Sarah, said she and her partner were planning to set up two more centres on the mainland.

She added that she had received many enquiries for her services in Butterworth.

“We’re now working out the extra costs we have to bear for hiring more people and rental,” she said.

Technical services manager M. Manimaran felt that increasing the number of daycare centres was an effective alternative for the shortage of maids.

“After all, parents are looking for a safe and good daycare centre which can work around our working hours.

“The place I send my son to even provides transportation from his school to the centre.He gets proper meals and time to do some reading or his homework.

“We have no worries, even during the school holidays,” Manimaran said, adding that he received constant updates about the whereabouts and condition of his 10-year-old son from the daycare centre through WhatsApp.

Working mum Lim Lee, 46, said she would opt to send her child to a daycare centre and hire a part-time maid if her Indonesian maid could not multi-task.

“There is no way I can afford to get two maids,” she said.

Malaysian Maid Employers Association president (Mama) president Engku Ahmad Fauzi Engku Muhsein urged the Government to encourage more nurseries or daycare centres run by properly trained and certified Malaysians.

Such facilities, he said, would not only ease the burden of having to pay for maids but would also give parents peace of mind while they were at work.

Engku Ahmad Fauzi said the expense of using these centres should be tax deductible, adding that it was the Government’s responsibility to solve over-reliance on foreign workers.

These centres, he added, would also provide the local workforce with jobs, ensuring less capital flight from the country.

By Royce Tan The Star

Working mums ‘maid’ to pay sky-high fees for childcare

 

Back-up plan: With maids becoming a scarce commodity, more are turning to childcare centres

PETALING JAYA: Dr Subhashini Jahanath is highly educated, hard-­working and does 11 calls a month.

Like many other working mothers, she is now facing the added frustration of sky-high fees for domestic help.

“It’s the childcare that’s difficult – what happens if I get called up in the middle of the night? At the same time, I just cannot afford the fees for a new maid,” she said.

Even then, Dr Subhashini, 35, is one of the lucky ones as she can call on her family for help.

The Miri-based doctor’s father has flown in from Selangor to help take care of her four-year-old son Harraen.

“On days he has to go back to Selangor, I have to send Harraen along with him, which means increased cost and Harraen missing school. But it’s the only way.”

Lawyer V. Shoba, 37, is also blessed with parents who help look after her seven-year-old twins, but still needs a maid to help them.

“My parents are both in their early 70s and need some help with the kids. Having domestic help is not a luxury,” she said.

In 2009, she paid RM6,000 in agency fees and a monthly salary of RM650 for her first Sri Lankan helper.

“In 2011, I got another Sri Lankan maid. The agency fee was RM7,500 and monthly salary was RM850. In 2013, I got a Filipino maid. The agency fee was RM9,900 and the monthly salary was RM1,200,” she said.

The agency fee, she added, has now gone up to RM12,000 and the monthly salary to RM1,500.

“I also have to pay for her toiletries, food and utilities used. That is a chunk of money that could be used for education or even holidays.

For those who are away from their families, babysitters and part-time house help provide alternatives.

Not everyone can call in the grandparent squad, and some parents feel that childcare options out there are not good enough to make them viable alternatives to live-in domestic help.

Corporate communications manager Sonia Gomez, 30, said she could not find any childcare options that were both good and affordable.

“Independent babysitters aren’t regulated, so it would be very tough to cope without my helper, Lia. She is reliable and has a very strong bond with my son,” she said.

Some mothers are opting out of the workforce entirely to take care of their kids.

Stay-at-home mum Evelyn Thong, 37, said she had heard too many daycare horror stories to consider it.

“It’s also too much money to risk. If your maid runs away, you cannot recover your money,” she said.

By Suzanne Lazaroo The Star

Maids for specific tasks only 

 


PETALING JAYA: The days of having a multi-tasking maid who does everything from cooking and washing to caring for the baby and the elderly and even washing the car is as good as gone.

Malaysians must now be prepared to pay more for specialised help.

Source countries such as Indo­nesia want to send upskilled helpers for specific jobs like caregiver, babysitter or nanny, and not the traditional domestic maid.

Malaysian Association of Foreign Maid Agencies (Papa) president Jeffrey Foo said all that was needed now was a mechanism to ensure these helpers were properly trained and certified.

Foo said Papa was ready to work with the source countries to create a win-win situation.

“Local employers will be satisfied if they get what they are paying for, which are skilled helpers who can do the task they are hired for,” he said.

The Star reported yesterday that Malaysia is in a fix because neighbouring countries are not in favour of sending domestic help here.

Foo said Indonesia, where most of the foreign maids are from, is not closing the door entirely.

Instead, it is adopting a more professional approach with its policy to stop sending live-in maids from next year.

A possible solution, according to Foo, is for the Government to license companies to supply part-time domestic maids to households who need them.

These companies could take care of the maids’ lodging and food but this would require a shift in government policy.

Foo pointed out that foreign workers brought in as cleaners were not supposed to be sent to work as domestic maids at individual homes.

Malaysian Maid Employers Association president (Mama) president Engku Ahmad Fauzi Engku Muhsein pointed out that the current system of having maids stay under the same roof as their employers for two years was not always ideal.

“If you’re lucky, there’s harmony. Otherwise, you get two years of disharmony,” he said. He echoed the view for local agencies to be allowed a supply of part-time maids.

Engku Ahmad Fauzi said there were currently different expectations between local employers and source countries such as Indonesia. In Indonesia, helpers are hired and trained as caregivers to take care of infants, children and the elderly or as domestic workers who cook, clean and tidy.

M. Sarkuna, a 40-year-old Indonesian maid working here, said those who took care of babies, children and the elderly earned at least RM800 in Jakarta, while those who cooked could take home about RM700.

“The starting pay for those who do household work is only RM500,” she said.

In Malaysia, Engku Ahmad Fauzi said employers often took for granted that maids had to multi-task.

He said the best and most well-trained helpers were not sent here, yet “Malaysian employers want to pay the lowest for the best”.

The way forward, at least in the short term, was to hire maids from cheaper and better source countries besides Indonesia and Philippines, he said.

“But Malaysians need to stop depending on domestic maids in the long run,” he added.

By Neville Spykerman The Star
 

Sunday, May 22, 2016

Hackers in your heads, Cybercriminals preying on gullible


Cyberscammers tapping into minds - Conmen get personal data from social media


<< You’ve been had: A user checking an SMS alert about an unauthorised credit card transaction.

PETALING JAYA: Cybercriminals are getting into your head.

Realising that victims are no longer falling for the ‘I’m a Prince who wants to deposit US$50mil (RM199mil) into your account’ e-mail, these syndicates have enlisted psychologists and behavioural experts to launch targetted attacks on companies, groups and individuals.

By going through their victims’ social media accounts, they learn more about their targets and are able to craft attractive e-mail, prompting them to respond.

Clicking on the link in the e-mail will download malware that encrypts your device. Computers, smartphones, smartwatches and any other network-connected device, can be locked by cybercriminals who will only release it for a fee, or “ransom”.

Such ransomware has reached our shores, with a total of 5,069 attacks in Malaysia last year, according to cybersecurity company Symantec Corporation.

“The new modus operandi uses social engineering, with the e-mail being crafted by Malaysians who know the local scenario and how to trigger emotional reactions,” Symantec (Asia Pacific and Japan) cyber security services senior director Peter Sparkes told Sunday Star.

For example, if they find out from Facebook that you went shopping, you could get an official-looking e-mail from a trusted source like a government body or postal department saying: ‘You’ve received a free gift from shopping at our KL outlet. Click this link to trace your parcel’.

“Or if they see you at a cycling event, the e-mail could say: ‘Thank you for participating. Click on the link for photos and videos of the ride’,” he said.

“To decrypt your device, they’ll ask for about US$200 (RM782) in virtual currency like Bitcoin, to bypass the banks,” Sparkes added.

Acknowledging this new threat, Malaysian Communications and Multimedia Commission (MCMC) strategic communication head Sheikh Raffie Abd Rahman urged the public to be more alert.

He said one of the most commonly used social engineering techniques was phishing attacks targetting online banking customers.

Such cases would be investigated by the police under the Computer Crimes Act 1997 or the Penal Code.

A total of 1,311 phishing websites have been blocked by the MCMC between last year and March 8.

This includes fake pages created to acquire personal information such as usernames, passwords, banking information and credit card details by masquerading as a trusted entity in an electronic communication.

CyberSecurity Malaysia (CSM) chief executive officer Dr Amirudin Abdul Wahab said the number of incidents reported to the CSM indicates the growing threat of ransomware here.

Revealing that local businesses are also targeted, he said the CSM will work together with international communities to share current information on ransomware threats and disseminate them to the public.

Malaysian Mental Health Association deputy president Datuk Dr Andrew Mohanraj said cybercriminals have become more sophisticated in their approach by enlisting psychologists.

“But whichever methods they use, there is an underlying modus operandi of appealing to human emotions of fear, greed, curiosity, loneliness, compassion or even spirituality,” he said.

By Christina Chin Yuen Meikeng The Star

Cybercriminals preying on gullible


Users beware! With cybercriminals leveling up, ransomware attacks are expected to spike here. Malaysians shouldn't let their guard down when it comes to personal information and should be on the lookout for online scams.


HE wasn’t the fastest, but Eugene (not his real name) feels like a champion after finishing his first marathon.

Posting a selfie he made public on his Facebook account, the 28-year-old later receives an e-mail congratulating him on the feat. “Click on this link to see more pictures and videos of the event,” says the e-mail, which appears to be sent from the organiser of the run.

Curious and hoping to see images of himself, Eugene clicks open the link on his laptop but instead, gets a message telling him his device is now locked. All his files have been encrypted and he can’t access them, including his work document to be submitted on Monday.

The only way he can retrieve them is to pay a hacker a ransom of US$300 (RM1,181) in Bitcoin currency. Such an incident, known as a ransomware attack, could very well happen to you if you are not careful.

To top it all off, these cases are expected to increase this year, with “very specific ransomware targeted very specifically at Malaysians” being detected, says Symantec (Asia Pacific and Japan) cyber security services senior director Peter Sparkes.

According to cybersecurity company Symantec Corporation, Malaysia ranks 47th globally, and 12th in the Asia Pacific and Japan region, in terms of ransomware attacks.

Last year, there were 5,069 ransomware attacks or 14 per day in Malaysia. But Sparkes foresees that these numbers will surge.

“Ransomware is very attractive because it makes lots of money. It’ll be big here in the coming months, probably averaging 20 attacks per day.

“We’ve seen a lot of smartphone attacks recently. They love WhatsApp because the best way to get someone to click on a link is if it comes from someone you know,” he says.

Sparkes describes such crypto ransomware as the latest, and most dangerous malware threat because it’s near impossible to get rid of.

He adds that the experience is very emotional because many people do not back up their data.

“For individuals, losing personal data like photos and videos is traumatic so most victims will pay. Some will even tell you how to infect your friends to decrease your ransom,” he reveals.

Ransomware hackers are also using help from psychologists and behavioural experts to study their victims on social media before sending them personalised messages to trigger a response.

But it is not just ransomware that needs to be taken seriously as Malaysians need to be vigilant over social media scams, with these two being named as key trends in the country now by Symantec Malaysia systems engineering director David Rajoo.

He says cybercrime is extremely widespread with one in three Malaysians surveyed having experienced it in the past year and 83% know of someone else who was a victim.

“Consumers here lost an average of 27 hours and about RM8.9bil over the past year, dealing with the fallout of online crime.

“The amount of personal data stored online continues to grow, and while this free flow of data creates immense opportunities, it also opens the doors to new risks,” he warns.

Cybercriminals preying on personal data are also a cause for concern here and globally.

Sparkes points out that personal assistants and those in human resources are popular targets because that’s how cybercriminals gain access into an organisation’s database.

“Take a hotel for example. I’d target the CEO’s personal assistant. All I need is 200,000 of their best guests. If I sold the details at US$50 (RM197), it’s pretty good money for a day’s work. HR staff’s another good one because they look at CVs,” he says.

Last year, 500 million personal information was breached globally. That, he says, is a conservative estimate.

Someone checks out your Facebook activities, creates a personalised e-mail to get you to click on a link, and that’s it.

Everytime you download an app on social media, you could be giving access to your life, he cautions.

Of 10.8 million apps analysed in 2015, three million were collecting way more information than necessary, Sparkes says.

“Cyber scammers are also making you call them to hand over your cash,” he adds.

They send fake warning messages to devices like smartphones, driving users to attacker-run call centers to dupe them into buying useless services.

The services industry is the most vulnerable sector in the country, attracting 72.4% of spear phishing attacks.

There was also a significant spam increase with Malaysia jumping up the global ranking from 44 in 2014 to 23 last year, he adds, lamenting how many still don’t realise that cybercrime is an industry.

Cybercriminals are professionals using very sophisticated tools and techniques.

“They work like any other legit organisation – it’s a 9am to 5pm job with weekends off, holidays and proper offices. A lot of users still think it’s 18-year-olds in the garage fooling around. Nothing could be further from truth. The guys sell info to the underground economy,” Sparkes says.

Syndicates only need three things – cheap broadband, a cyber-savvy workforce they can hire, and countries where cyber laws are weak. Asia Pacific and Japan has invested significantly to give their population access to the Internet, he adds, explaining the shocking rise of cybercrime.

“I’m particularly concerned about the senior citizens as many are just discovering the Internet. They’re very trusting and will download without questioning. People stress on being streetsmart, but it’s just as crucial to be cybersmart,” he feels.

By Christina Chin Yuen Meikeng The Star

Related story:

M’sians still giving away sensitive info

Saturday, May 21, 2016

Fintech - disruptive technology




http://www.thestar.com.my/business/business-news/2016/05/21/fintech-disruptive-technology/

Businesses are embracing it by coming up with their innovations and startups


A BUZZWORD growing in popularity in the financial world today is “fintech”, short for financial technology, which in a nutshell refers to the use of technology to deliver faster and cheaper financial services.

Going by some predications, fintech could take a big chunk of business away from traditional banks as it is being run by smaller more nimble start-ups. But the debate is still out there as to how much that chunk will be. In Malaysia in particular, fintech’s presence is still nascent and small. Fintech transactions totalled a mere US$6.37mil this year compared with a global figure of US$769.3bil, according to Statista, an online statistics provider.

It however predicts that fintech transaction values to grow to US$14.4bil by 2020. A significant number of fintech companies, especially those in the digital payments space, actually work alongside local banks.

Still, fintech is not to be taken lightly. Top bankers themselves are speaking of its imminent threat to their business. Former Barclays CEO Anthony Jenkins referred to it as banking’s “Uber moment” to describe technological advances that could see bank branches close down and people laid off.

Last April, Jamie Dimon the CEO of the US’ largest bank JP Morgan in his letter to shareholders warned that “Silicon Valley is coming.” “There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking,” Dimon wrote.

On the home front, just last month prominent banker Datuk Seri Nazir Razak echoed such views. Speaking at the Star Media Group’s PowerTalk: Business Series held at Menara Star, Nazir opined that fintech companies are disrupting banking.

“Bankers must respond to this Uber moment. People actually dislike banks today, since the global financial crisis. Recent data suggests that in the US, the cost of banking intermediation has not changed for 100 years in real terms. This simply means banks have not gotten more efficient over the years, so its right that banks get attacked by ‘Silicon Valley’, which has identified banking as an industry that is very ‘ripe’ or juicy to disrupt.”

Even the central bank is echoing these views.

In his maiden keynote address at an Islamic finance conference in Kuala Lumpur last week, Malaysia’s newly-appointed Bank Negara governor Datuk Muhammad Ibrahim gave a grim reminder to banks of the threats posed by fintech. In particular, Muhammad quoted from a report by McKinsey that 10% to 40% of banking revenue is possibly at risk by 2025 due to innovations outside banking institutions that are able to offer a significant pricing advantage and that technologically-driven applications had spread to nearly every segment of the financial sector, with the number of fintech start-ups having doubled in the last year. “Fintech is challenging the status quo of the financial industry,” he said.

To be fair, Malaysian banks are quick to point out that while fintech does represent a disruption to business, they are embracing the movement, by coming up with their own fintech innovations or by working with fintech startups.

So what is fintech?

In a nutshell, fintech is an economy of companies using technology to improve efficiencies and effectiveness in the financial services industry. To illustrate the offerings of fintech companies, consider the business model of homegrown start-up MoneyMatch, which is modelled after UK-based TransferWise which began in 2011 and today moves US$10bil a year through its platform.

MoneyMatch has created a platform to match individual buyers and sellers of currencies, with the attraction of both sides enjoying better exchange rates than what banks and even money changers offer. The rate used by the MoneyMatch site is the middle rate of the currency exchange spread. So an individual for example, willing to buy US$100 for his travels will be matched with someone wanting to change his US$100 into ringgit. The parties will be matched on this application and then proceed to make their exchange in an agreed location. MoneyMatch is also entering the area of cross border fund transfers.

“For example, someone in Singapore wishing to transfer money to Malaysia can be matched with someone here wishing to send an equal amount of money across the Causeway. Hence the parties can make the respective transfers to local accounts of their choice after an exchange of information. This means the transfer is done minus any cross-border transfer fees,” explains MoneyMatch co-founder Naysan Munusamy, who had spent many years as a forex trader with a number of banks before venturing out to start MoneyMatch.

Peer lending

One key growth area in fintech is peer to peer or P2P lending, online platforms that match borrowers with lenders, bypassing the traditional financial institutions. The business had even attracted big names such as Goldman Sachs. The most notable name in this space is Lending Club, which had launched its service as far back as 2007 and became the US’ largest technology IPO in 2014, raising around US$1bil.

Lending Club claims that its platform – which enables borrowers to get unsecured loans of US$1,000 to US$35,000 – has now helped originate close to US$16bil in loans.

Locally, last month the Securities Commission (SC) launched a regulatory framework for P2P lending, paving the way for small and medium-sized companies to access this new avenue of debt funding. Under SC’s rules though, individuals are not allowed to raise money on the local P2P platforms. Rather it is meant to only fund projects and businesses and a number of safeguards are in place. For example, those behind the operator of the P2P platform need to pass the “fit and proper” test; the rate of financing cannot be more than 18% (as that would be deemed predatory lending) and that the P2P operator has to disclose information related to the issuer and the risk assessment and credit scoring parameters adopted by the operator. There is no authorized P2P platform in Malaysia yet as parties wishing to run such platforms have to submit their application to the SC soon.

In China, P2P lending has virtually exploded. As a recent report by Citibank highlights, “China is past the tipping point”, with fintech companies having similar number of clients as the major banks. The report notes that China is the largest P2P lender in the world, with transactions topping US$66bil, compared with the US with only US$16.6bil.

Regulating fintech

But there are problems. Some unregulated P2P platforms in China had run scams. Others helped fuel an equity roller-coaster by offering funding for stock investments. This led to the Chinese benchmark index rallying more than 150% in the 12 months to last June before abruptly crashing. The Chinese authorities are now cleaning up the P2P sector.

So what are the risks of fintech regulation in Malaysia? And do companies like MoneyMatch need be regulated and licensed?

In an emailed reply to StarBizWeek, Bank Negara says: “Fintech start-ups that engage in activities under the purview of the central bank must comply with existing laws”. Bank Negara explains that regulated businesses include banking, insurance or takaful, money changing, remittance, operating a payment system or issuing payment instruments.

“A fintech company that engages in any activity that falls within the definition of a regulated business must be properly authorised to do so under the relevant laws.

“As an example, collecting deposits via a fintech platform would require approval from Bank Negara.

“A fintech company that is authorised to conduct a regulated business under the laws that Bank Negara administers will be subject to the oversight of Bank Negara pursuant to those laws.”

What this indicates is that Bank Negara is going to regulate fintechs the same way it does banks. But exactly how, it still isn’t clear.

But the good news is this: Bank Negara says it is engaging with firms in this space (and presumably that includes the likes of MoneyMatch), “to understand and where appropriate facilitate their business and provide guidance on aspects on regulation that would be applicable to them.”

Bank Negara adds that it is in the process of formulating a framework that “encourages innovation without undermining financial stability, the integrity of the financial system or the adequate protection for financial consumers.”

The SC has also been pushing for fintech innovation to develop in Malaysia. Last year, Malaysia became the first country in the region to introduce the regulatory framework for equity crowd funding. (While P2P is about companies raising debt, crowd funding is for entrepreneurs to sell equity to investors.)

The SC has also launched aFINity@SC, a fintech community aimed at industry engagement and more recently launched the P2P financing framework, which is aimed at addressing the funding needs of small businesses.

Chin Wei Min, the SC’s new head of innovation and digital strategy, says: “We think fintech can provide solutions to some of the unserved and underserved needs in the capital market.”

Chin adds: “We are also mindful of the risk, fraud and all the pitfalls. We continue to enhance our engagement model. We want to remain very close to the industry.”

Fintech’s hiccups

Some recent developments in the fintech space, however, point to weaknesses in fintech companies. LendingClub, the poster boy company for P2P lending has seen its shares tumble, wiping out about a third of its market value.

This came as it faces scrutiny after its founder and CEO resigned following an investigation into improper loan sales.

The US Treasury has released a report criticising the P2P lending business, recommending it to be more tightly regulated. Some commentators are liking P2P lending to the early days of the subprime mortgage bubble of 2006-07.

It is more likely though that the experiences of fintech in mature markets like China and the US will serve as good guides as to how this business will grow in this part of the world, with the requisite regulations put in place.

And the jury is still out as to whether traditional banks here will lose significant parts of their businesses to fintech start-ups.

Or as one industry observer puts it, fintech is more likely to usurp the business of the shadow banking market here, as some unserved borrowers now have the option to move away from loan sharks or “Ah Longs” and into the crowd funding or P2P platforms. But after that, banks could be next.

By Risen Jayaseelan, Wong Wei-Shen, a Zunaira Saieed The Star


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Zafrul: ‘We want to anticipate and capitalise on opportunities.’Banking on fintech  



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