Monday, 16 May 2016

Transferwise: the best way to transfer money from overseas to Malaysia

Sometime ago I want to transfer some money from Australia to Malaysia. I researched for many companies to look for the best (cheap and effective) way. Here it is.

Trasnferwise is the best company you could possibly find for fund transfer from Australia to Malaysia (and I believe for other major currencies to MYR too). Established in the UK, Transferwise supports all major currencies and is invested by Sir RichardBranson, the founder of Virgin group. 


Advantages:

1. It uses mid-market rate. This means that your transfer rate is even better than BNM's buyer rate, i.e., the exchange rate they offer is exceptional. In contrast, traditional telegraphic transfer (TT) using banks comes with a 5-10% spread as compared to BNM forex rate.

2. Small transaction fee and no other hidden fee will be incurred. For AUD-MYR, you will be charged 0.7% of the amount you transfer. And because you do not "lose" in forex rate,  this means that the money you receive is only 0.7% less compared to the "optimal amount". I bet you can find any company doing better than this.

3. Fast and efficient. From my experience, the service is very impressive. I received the fund the next business day after they received my fund.

4. Reliable and secure. In the process of fund transfer, you will be updated at each stage about your fund status. This gives you peace of mind. You can read some review here. I am not surprised that this company receives 9.5/10 for their service. 

If you want to transfer fund from overseas to Malaysia, abandon the exorbitant fees charged by banks and start using Transferwise by registering here. Yes, I have to tell you that this is my referral link. If you signed up using this link you will have a free transfer of up to GBP 500. And if you successfully refer your friends and they have made a transfer, you will be rewarded with cash.



Wednesday, 11 May 2016

So a good financial report does not mean a jump in share price

This is subtly related to a previous article the consequence of betting on quarterly reportIn the article, I talked about the lesson learnt from betting on financial reports. Now the market seems to "evolve" to another higher standard.

Malaysia International Shipping Corporation (KL: MISC) announced its quarter report on last Friday, 6/5/2016. The company's profit rises 17% quarter-over-quarter. Despite a good quarter report, out of a sudden, MISC plunged 13% on Monday 9/5/2016, with no apparent reasons.

This reminds me of the opposite example, IOICORP. On 16/11/2015, IOICORP posted a loss of 719M, downed 500%+ quarter-over-quarter. For a blue chip stock to incur a loss, people were expecting a big drop in the share price. However, nothing happened on the next trading day and the stock was performing just like normal.

What does this imply? The financial world is changing at all time. So the stock market changes pattern too. The "correlation" between financial results and short term stock price movement seems to disappear. While fundamentals are still important, my view is that its importance and significance has diminished to a lower "weighting". If this is true, then the old way of "long term investment" may no longer work. The big question is: what is the more important factor now? This is a question worth contemplating.