Business Today Magazine

business_today_magazine

Business Today News

This segment is where the latest trends, business news and headlines are. Provided in brief with an easy-to-read format, it contains a lot of relevant information for professionals and businessmen around the country which offers advice and current updates for their businesses and corporations.

Features section

In every edition, Business Today will have several feature stories which dwell into specific interests and industries. This includes write-ups on companies that have been performing very well, success stories of certain organizations, best practices and profiles of successful businessmen across Malaysia. Apart from that, there would be write-ups and articles like business ideas, tips and tricks, business advice and others aimed at helping the professional businessman to improve and grow.

Investments section

This is in a segment called Money Today where Business Today provides insights into certain investment areas that could work for the reader. From advice on good investment to keeping a company afloat in an economic crisis, this segment provides a lot of vital information which is very relevant in today’s economy.

Property section

There is a segment on property investment which gives the reader good insights and in-depth evaluation of this market. This includes news of new launches, property valuation, lifestyle and many more, all of which will give the reader a good perspective of investing in this market.

Other Segments

Besides money and investment, Business Today provides leisure reading in other areas like Going Green and Wheels which includes living a healthy life and in the automotive sector. These articles are provided to give readers more reading options which is relevant in today’s fast-moving and hectic lifestyle.

Money Markets

It is vital for any investor or business person to know about the money markets. In Malaysia, there are several major markets that can be considered like:

  1. Cryptocurrency market – This is among the most exciting new markets to emerge in recent years. There are exchanges available for trading and readers should do the relevant research and find out as much as they can before investing
  2. Share Market – Bursa Malaysia hosts the MAIN, ACE and LEAP markets. What are they and which market is worth investing in? Such information is extremely important for the investor and any business professional today
  3. Forex – A strong investment market in recent years, traders can now enjoy the processes fully online

All about Gold Investment

gold malaysia

Gold Production It is rather complicated to produce gold as it involves prospecting, mining and extracting. Gold prospecting refers to the activity of searching for new gold deposits. It involves different methods to seek new gold deposits. It was once a commercial activity but time has changed and today, it has become an outdoor recreation in many countries. Meanwhile, gold mining refers to the processes of removing and digging gold from the ground. At this stage, it requires four techniques to extract these metallic elements from the ground – panning, metal detecting, sluicing and dredging. Panning is the easiest method to extract and search for gold from the ground. On the other hand, with a metal detector, one can easily find and locate the exact spot of gold below the surface. This technique is relatively more popular among gold miners because having a metal detector is convenient as you can carry it around and also easy to operate. Other than a metal detector, miners may use sluice box to ‘force’ gold drop out from a specific zone. Dredging is one of the traditional methods where one or more people will operate a small machine to scan for gold below the surface. Last but not least, gold extraction consists of several stages such as mineral processing, comminution and hydrometallurgical to excavate gold from the ground.

Largest Consumer of Gold

In the last few decades, India remains the largest gold consumer worldwide. According to a report released by World Gold Council, India’s demand for gold in 1997 reached 737 tonnes. Of course, if you look closely and observe their culture, it is common to find Indian women wearing plenty of gold jewelry especially during special occasions and festivities. This is because the amount of gold jewelry determines their social status in their neighbourhood. In rural areas, families will purchase large amount of gold ornaments using the entire family savings. These jewelries remain as part of the family’s wealth. Gold is essential in a traditional Indian marriage. Most of the dowry goes to buying gold jewelry for the bride. It is believed that the demand for gold in the country increases by 30 to 50 percent annually based on the statistics released in 1998. The demand for gold increased from 508 tonnes in 1996 to 737 tonnes in 1997. The demand of gold in India equals to the total demand from Hong Kong, Taiwan, China, South Korea, Indonesia, Singapore, Malaysia, Thailand and China. During economic crisis, the gold demand in these countries especially Singapore gold either reduce or slow down but the demand from India remained steady.

Industrial Uses

Other than monetary policies, dentistry and jewelry purposes, gold is also widely used as a form of alternative medicine, chemistry, food and beverage and electronics. Gold is seen as a rare metallic element with healing power. For example, gold salts are sometimes used to treat arthritis while injectible gold can even help to reduce pain and swelling of tuberculosis. Needless to say, gold alloys are commonly found in dentistry as it produces better results compared to porcelain crowns. Besides using it as a form of alternative medicine, gold can also be found in food. For instance, gold leaf or dust is used in gourmet food or drinks as a decorative ingredient. It is chosen by the nobility in Medieval Europe because gold reflects the host’s wealth while at the same time it is beneficial for our health. South Asian sweets such as barfi also contain gold foil with silver. Some expensive cocktails may contain flakes of gold leaf but one can never detect it since it is basically tasteless.

Gold Standard

Gold is most commonly well-known as money or as a medium and tool of exchange. Back in the olden days, money was made out of gold. In other words, people used to trade goods and services with gold coins. But time has changed and gold is no longer used to trade goods and services. Nevertheless, gold still served as a symbol of wealth and power. Besides understanding what exactly is gold, one need to know the phrase ‘gold standard’. The term has provided a basis for monetary policies in most of the countries around the world. To be more precise, the term is defined as the use of this metallic element as the standard value for money in a particular country. For instance, if a country wants to redeem its money in gold, then it would be evaluated based on gold standard. In early 1900s, United States and many Western countries used to abide to the gold standards. Nevertheless, Britain first abandoned the standards in 1931 and United States only abandoned it in 1971. Fortunately, gold is still recognized as a commodity internationally. Five years after United States abandoned gold standards, the government decided to set the value of gold to a dollar. As a result, the price of gold rises and falls overtime. It all comes to the same conclusion – even though gold is no longer used as a tool of exchange or the monetary policies are no longer based on the value of gold, it is still considered a precious metal.

Gold Colours

To begin with, the colour of pure gold is bright yellow. The colour of gold is determined by the density of electrons and it formed as a collective plasma medium commonly known as plasmon or quasi-particle. Even though gold will not wear and tear with time and remained unaffected by moisture, it can be discoloured by certain liquid such as detergent, bleach, hairspray and chlorine. Since gold lacks resistance, jewelers tend to alloy it with other metals to increase its durability. Gold can be divided into different types based on its colour tinge. For instance, rose gold has a slightly reddish hue because of copper elements while white gold has an almost silver-coloured tinge caused by a combination of nickel, zinc or platinum. Blue gold with a bluish hue is due to a combination of iron and green gold with greenish hue is because of copper and silver. The percentage of alloyed metal in gold will affect the purity of gold. The purity of gold will be measured in karats. On a scale between 1 to 24, 24 karat gold is the pure gold. However, gold with high karat measurement does not mean that it is the best material for jewelry. In fact, gold with high karat measurement such as 24 karat gold is unsuitable for jewelry because it is too soft and bends easily. On the other hand, gold with extremely low karat measurement is also unsuitable because of its low gold content.]]>

Online Trading(Stock market)

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The Kuala Lumpur Stock Exchange (KLSE) introduced the ECOS (Electronic Client-Ordering System) in 1995 which provides stockbrocking companies to direct their clients’ orders through to the exchange. They use a propriety system which is used by users to dial into the stockbroker’s system. This will require the stockbroking company to upgrade their systems to allow for such facilities to their clients. Once implemented, the clients can then check their stocks online as well as receive quotes and such. because of the fact that the internet uptake at that time was still low, the system did not gain the popularity that it has hoped to. In Malaysia, you can trade only through a few licensed representatives or remisiers.

Compared to the ECOS, you will not be able to send in your orders straight to the exchange, instead you will be inserting the information to the BFE (Brokers Front-End) system. The remisier or the broker will have to direct your orders to the exchange using the SCORE (Computerized Order Routing and Execution).

Once there is a right price, the orders will be matched which then payment will be cleared using the SCANS (Security Clearing Automated Network System). To trade online, you must ensure that the broker and the remisiers are licensed by the Securities Commission, and that their trading facilities are approved by the Kuala Lumpur Stock Exchange.

Different types of stocks

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A Preferential Stock is typically different from that of an ordinary stock. This is where the stockholders will receive dividends before the usual time frame of announcements of the ordinary stocks’ dividends. Preference Stock means that certain stockholders are given preferential treatment and in most cases come with a fixed dividend rate. If the company wound up, the distribution of assets of the company would first be given to the preference stockholders before the ordinary stockholders.

The Rights Issue is a type of privilege given to certain stockholders to buy stocks in a particular company which is usually below the market price. A Bonus Issue is the free issuance of stocks to a particular stockholder based on the numbers that particular stockholder currently hold. For example, if Ali owns 3,000 shares in company A, the bonus issue would be that he will be given an additional 3,000 more shares in Company A. Derivatives is where you can trade certain securities that ‘derive’ their price from their parent company’s stock prices.

Derivatives have 2 types known as Options and Warrants. Options involve 2 parties known as the writer or seller and the taker or buyer. This is where the writer (seller) writes the option and is then obligated to accept the sale while the taker (buyer) could exercise their right to buy or sell the stocks. They are not obligated in any way for the trade. Warrants on the other hand usually ‘derive’ their price from the parent company’s stock prices. They are usually issued by financial institutions like banks and are normally classified either for investment or trading purposes.

The Stock Broker

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online trading, brokers earn a lot more commission as you will need to call them each time you want to buy or sell any shares and they will advice you accordingly. This was where the brokers are more involved with your trading by monitoring the share price for you and then advising you appropriately. This scenario has since changed tremendously with the use of technology where you open an account with the broker and then you will be given access to the trading activities using the internet. The responsibilities of monitoring your shares have now been handed back to the trader and you can buy and shares using the computer. Each transaction will still channel a small commission to the respective broker. However, traders could still practice the conventional way of buying and selling of shares by calling their brokers.  ]]>

Understanding the Stock Market

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The Malaysian Stock Exchange – Bursa Malaysia Bursa Malaysia generally is the name of the Malaysian Stock Exchange and this is the authority that stipulates the rules, regulations and guidelines in share investments. There are currently more than 1,000 public listed companies in Bursa Malaysia that cut across various industries and sectors. They are either listed in the Securities Main Market or the ACE Market which were created to allow companies to ‘go public’ in order to raise more capital in their business operations. Such an exercise is common among companies who after starting their businesses find themselves short of fund.

If their business shows potential, they will then publicly ‘float’ the company whereby certain shares of the company are sold to the public. This is where IPO happens. IPO or Initial Public Offering is where the company announce intent to list the company and a Prospectus is released to the public that reports everything concerning the company. Once the company is listed, its shares could be traded in the market like any of the other public listed companies. The concept is simple, if you buy a share of a certain company, you are practically owning a part of the company which means you will get a share if the company profits and also bear part of the loses if it does.