What is The Impact on New Cabinet to Unit Trust Industry in Malaysia?

We have seen the reduction of cabinet members from 90 to 68 yesterday. It is about 25% decrease. So what is the impact? I don’t know. But in my humble opinion, when the government applies downsizing as what the corporate has done, it will result in cost reduction and thus benefit the people. But it does not necessarily make the system in place become more efficient as it depends on the people who runs it.

So will there be any changes in unit trust industry? This one we will have to wait for the authority to announce it. But for this year alone, before the election, the unit trust industry has seen many changes from the reduction of consultant’s commision percentage to the reduction of CPFcase service charge to investor. And in 2007, we have gone through the change from dual pricing scheme to single pricing regime. So change is constant. We as the unit trust consultants has to be ready and equiped ourself to face the changes ahead.

There is another point to note here, we noticed that the world trend now is towards lean organisation whether it is in corporate world or it is in the government. Downsizing, downsizing and downsizing. There is no more job security in either the government or the corporate world. What is left is only ILLUSION of job security. Is there any other business that are contravene with downsizing. Upsizing, upsizing and upsizing. I think we all know the answer but we don’t want to try it. What is that??? It is a unit trust business. Everyday we would like to expand our business and our agency. We never downsize only upsize. No one will be retrenched or caught on VSS (Voluntary Separation Scheme).

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2 thoughts on “What is The Impact on New Cabinet to Unit Trust Industry in Malaysia?

  • Salam,
    Bursa Malaysia Papan Kedua akan disatukan dgn Papan Utama. What impact on UT? What the reason behind the ‘merging’ of the board? Any comment from Yg Arif?

  • Wakzam,
    Tough question. From the companies that are currently in 2nd Board, they view this is a good move as when the merger, there is no first class or 2nd class company to the bank that want to give them loan. Yes, 2nd Board company is having difficulties to get financing compare to Main Board. Other than this comment, we wait until they are implemented. There is no dateline when they are going to implement.

    So for Unit Trust, I personally think that it will have no major issues for the fund managers to choose the right companies. They have all the track record of the companies whether it is Main Board or Second Board.

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