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DEPOSITOR(S) ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF IN
DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISOR. FOR INFORMATION CONCERNING CERTAIN
RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE DEPOSITOR(S), SEE "RISK
FACTORS" ON PAGE 6.
This prospectus dated 23 October 2012 is in relation to a RM30.0 million Shariah-
compliant Deposit Scheme Size in revolving basis (MamaSavings)
KOPERASI SIMPANAN DAN KREDIT BERSATU MALAYSIA BERHAD (“KOSIMPANAN”) (Reg. No.: W-6-0367)
Dear Valued Depositor(s), Thank you for considering investing in the MamaSavings Shariah-Compliant Deposit Scheme (“the Shariah–Compliant Deposit Scheme”). The main features, objectives, investment strategy and principal risks related to the Shariah-Compliant Deposit Scheme can be easily found in the “Key Data of the Deposit Scheme Section” as well as in the “Deposit Scheme’s Detailed Information Section” of the Prospectus. We have a section which describes the profiles of depositors who are suitable for the Shariah-Compliant Deposit Scheme which are on page 12. One of the ways of ensuring that the Shariah-Compliant Deposit Scheme is right for you is to find out whether the objective of the Shariah-Compliant Deposit Scheme is aligned with your own financial objectives. As always, it is important to note the fees and charges related to the Shariah-Compliant Deposit Scheme. such as member subscription fee, entrance fee, penalty charges (eg: on lost of certificate) and others. The details of such fees and charges are set out in the “Deposit Scheme’s Fees and Charges Section” of the Prospectus. Investment in the Shariah-Compliant Deposit Scheme can be made via mail/ email/ walk-in to KoSimpanan’s head office. If you are interested in the Shariah-Compliant Deposit Scheme, have any queries, require further information about this Prospectus or would like to know more about investing in this Shariah-Compliant Deposit Scheme, please feel free to contact our head office at 03-22827233 or email your queries to [email protected]. We look forward to being of service to you. Yours sincerely, for and on behalf of KOPERASI SIMPANAN DAN KREDIT BERSATU MALAYSIA BERHAD DATO’ WAN ISMAIL BIN ABDUL RAHMAN Chairman
This Prospectus has been reviewed and approved by the directors of Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad (“KoSimpanan”) and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Prospectus false or misleading.
Statements of Disclaimer The Suruhanjaya Koperasi Malaysia (“SKM”) has approved the creation of the Shariah-Compliant Deposit Scheme and the offer for investing in the Shariah-Compliant Deposit Scheme, the subject of this Prospectus. The approval should not be taken to indicate that SKM recommends the Shariah-Compliant Deposit Scheme or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Prospectus. SKM is not liable for any non-disclosure on the part of KoSimpanan who is responsible for the Shariah-Compliant Deposit Scheme and takes no responsibility for the contents in this Prospectus. SKM makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. DEPOSITOR(S) SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE SHARIAH-COMPLIANT DEPOSIT SCHEME. IN CONSIDERING THE SHARIAH-COMPLIANT DEPOSIT SCHEME, DEPOSITOR(S) WHO IS IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESIONAL ADVISORS IMMEDIATELY.
Additional Statements Investment in the Shariah-Compliant Deposit Scheme based on this Prospectus will not be accepted upon reaching the maximum size of the Shariah-Compliant Deposit Scheme as set out in page 8. Depositors must be aware that monies deposited in the Shariah-Compliant Deposit Scheme are not similar to monies deposited with a financial institution. There are risks involved, and depositors should rely on their own evaluation to assess the merits and risks of depositing monies in the Shariah-Compliant Deposit Scheme. Depositors must be aware that the monies they deposit in the Shariah-Compliant Deposit Scheme are not insured by Malaysia Deposit Insurance Corporation (Perbadanan Insurans Deposit Malaysia).
Page 1.0 Definitions and Interpretations ......................................................................................... 2 2.0 Corporate Directory .......................................................................................................... 4
Shariah-Compliant Deposit Scheme
3.0 Key Data .......................................................................................................................... 5 4.0 Risk Factors ..................................................................................................................... 6 5.0 Detailed information
5.1 Objective ........................................................................................................... 7 5.2 Benchmark ....................................................................................................... 7 5.3 Principal Investment Strategy ........................................................................... 7 5.4 Approved Deposit Scheme Size ....................................................................... 8 5.5 Market Comparison ........................................................................................... 8 5.6 Shariah Investment Guidelines ......................................................................... 8
6.0 Fees and Charges ............................................................................................................ 10 7.0 Transaction Information
7.1 Investing ............................................................................................................ 11 7.2 Withdrawals or Renewals of Deposit ................................................................ 12 7.3 Profit Returns of Deposit ................................................................................... 14 7.4 Unclaimed Monies ............................................................................................ 15 7.5 Certificate of Deposit ......................................................................................... 15 Shariah-Compliant Personal Financing
8.0 Detailed Information 8.1 Financing Facility’s Objective ............................................................................ 17
8.2 Financing Facility Allocation .............................................................................. 17 8.3 Principal Financing Strategy ............................................................................. 17 8.4 Approved Financing Facility Size and Tenure .................................................. 17 8.5 Financing Criteria .............................................................................................. 17 8.6 Market Comparison ........................................................................................... 18 8.7 Shariah Financing Guidelines ........................................................................... 18
9.0 Fees and Charges ............................................................................................................ 20 10.0 Process Flow .................................................................................................................... 23
11.0 Modus Operandi ............................................................................................................... 25 12.0 Management and Administration
12.1 The Manager ..................................................................................................... 26 12.2 Summary of KoSimpanan’s Financial Position ................................................. 27 12.3 Budgeted Income for Three (3) Years Ending June 2014 ................................ 27 12.4 The Board of Directors ...................................................................................... 28 12.5 Key Management Staff ..................................................................................... 29
13.0 Shariah Advisor ................................................................................................................ 31 14.0 Approvals and Conditions ................................................................................................ 32
DEFINITIONS AND INTERPRETATIONS
In this Prospectus, the following terms and expressions shall have the following meanings unless otherwise stated: Definitions Bank Negara Malaysia (BNM) BNM is the central bank of Malaysia and is a statutory body wholly
owned by the Government of Malaysia. The Bank reports to the Minister of Finance, Malaysia and keeps the Minister informed of matters pertaining to monetary and financial sectors policies
the Board The Board of Directors of KoSimpanan BPA Biro Perkhidmatan Angkasa Cut-off Time 5.00 p.m. on a Working Day Depositor(s) The members of KoSimpanan who deposits or invest in the Deposit
Scheme the Deposit Scheme The MamaSavings Shariah-Compliant Deposit Scheme Deposit Scheme Size RM30,000,000.00 (Ringgit Malaysia Thirty Million) only on revolving
basis Financing Customer(s) The member(s) of KoSimpanan who are Government Servant and has
secured Financing Facility from KoSimpanan the Financing Facility The PapaFinancing Shariah-Compliant Financing Facility Financing Facility Size Maximum of 80.00% of the deposits collected under the Deposit
Scheme Guidelines GP9: Garis Panduan Mengenai Pengambilan Simpanan Khas Dan
Deposit Atau Penerimaan Pinjaman (“Recruitment of Special Savings & Loan Deposit Receipt”) and GP7: Garis Panduan Mengenai Pembiayaan Islam Oleh Koperasi (“Islamic Financing of Co-operative”) issued by SKM
Manager or Koperasi Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad
(Reg.No: W-6-0367) Offer Period The period during which the deposit may be collected/accepted Overnight Policy Rate (OPR) An overnight interest rate set by BNM used for monetary policy
direction. It is the target rate for the day-to-day liquidity operations of the BNM
the Prospectus The prospectus for the MamaSavings Shariah-Compliant Deposit
Scheme Prescribed Rate The rate agreed upon by the Depositor(s) and the Manager on the
placement of deposits or between the Financing Customer(s) and the Manager upon the approval/disbursement of the Financing Facility
SKM Suruhanjaya Koperasi Malaysia
DEFINITIONS AND INTERPRETATIONS
Shariah Islamic Law comprising the whole body of rulings pertaining to human
conducts derived from the sources of the Shariah. The primary sources are the Quran, the Sunnah, Ijma’ and Qiyas, while the secondary ones are those established sources such as Maslahah, Istihsan, Istishab, ‘Uruf and Sadd Zara’ie
Shariah Requirements A phrase or expression which generally means making sure that any
human conduct must not involve any prohibition and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by the Shariah for that element
Tenure/Maturity Date The last day of the tenure of the deposit placed in the Deposit
Scheme and/or the Financing Facility. Where the maturity date falls on a Sunday, public holiday or non-banking business day, the maturity date shall be deemed to fall on the next business banking date
Working Day A day on which the Manager is open for business in West Malaysia
and East Malaysia (excluding Saturday and Sunday, state and public holidays), as the case may be, and on which transactions of the nature contemplated for the Deposit Scheme and the Financing Facility may be carried out
Interpretations (a) Words importing the masculine gender shall include the feminine and neuter genders and vice versa.
Words importing the singular shall include the plural number and vice versa. (b) Where the Depositor(s) consists of two or more persons, the obligations and liabilities of each person
shall be joint and several.
MANAGER REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad
(Reg. No.: W-6-0367)
Suite 10.03, Level 10, The Gardens South Tower Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur Tel: 03-2282 7233 Fax: 03-2282 2399 Email: [email protected]
PRINCIPAL BANKERS SHARIAH ADVISER FOR THE SCHEME AND THE MANAGER
Bank Kerjasama Rakyat Malaysia Berhad AmIslamic Bank Berhad Alliance Islamic Bank Berhad CIMB Islamic Bank Berhad
Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) Wisma Ungku A.Aziz Jalan SS 6/1, Kelana Jaya, 46798 Petaling Jaya, Selangor Tel: 03-78846673
BOARD OF DIRECTORS AUDITORS OF THE MANAGER
1. Dato’ Wan Ismail Bin Abdul Rahman (Chairman)
2. Tee Guan Pian (Deputy Chairman) 3. Chong Voon Wah
(Secretary) 4. Yong Yoke Kheng (Treasurer) 5. Mohd Hamizane Bin Mohd Ariffin (Board Member) 6. Anuar Bin Abu Bakar (Board Member)
Fam & Associates Lot 20-ACD, Level 5, Menara Pandan B Persiaran MPAJ Jalan Pandan Utama, Pandan Indah 55100 Kuala Lumpur Tel: 03-42969863 Fax: 03-42961863
Depositor(s) are advised that the following section is only a summary of the Deposit Scheme’s salient information and depositor(s) should read and understand the Deposit Scheme before making any investment decisions.
Management Company Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad (“KoSimpanan”)
Name of Deposit Scheme
The MamaSavings Shariah-Compliant Deposit Scheme
The Objective of the Scheme. The Deposit Scheme is a fixed return deposit account which aims to provide depositor(s) with greater returns in their savings (as compared to deposits in general) that complies to the Shariah principles
Benchmark Overnight Policy Rate (OPR)
Principal Investment Strategy The monies that are deposited into the Deposit Scheme will be utilised for a Shariah-compliant personal financing scheme called the PapaFinancing Shariah-compliant Financing Facility offered to members of KoSimpanan who are government servants. The Deposit Scheme is designed to be in full compliance to SKM’s GP9: Garis Panduan Mengenai Pengambilan Simpanan Khas Dan Deposit Atau Penerimaan Pinjaman (“Recruitment of Special Savings & Loan Deposit Receipt”). The Deposit Scheme portfolio will be structured as follows:- a) Maximum of 80.00% of the deposit collected will be utilised for the
Financing Facility which fully adheres to the shariah principles; b) At least 20% of the deposit collected will be maintained in cash or
its equivalent or any expenses recoverable directly from the Deposit Scheme.
Principal risks of the Deposit Scheme
Risk of Non-Compliance
Credit/ Default Risk Depositor(s) Profile
The Shariah-compliant Deposit Scheme is suitable for depositor(s) who:- (i) Look for greater returns in their savings ; (ii) Depositor(s) with lower and middle level of income source; (iii) Seek to preserve the value of their capital;
Approved Deposit Scheme Size
RM30,000,000.00 (Ringgit Malaysia Thirty Million) only on revolving basis
Commencement Date of the Deposit Scheme
The Shariah-compliant Deposit Scheme will be offered from the date of the Prospectus.
4.1 Risks related to the Shariah-compliant Deposit Scheme
Any investment carries with it an element of risk. The following are the risks involved in investing in this Shariah-compliant Deposit Scheme: Management Risk
There is a risk that the Manager may not adhere to the investment mandate of the Deposit Scheme. The expertise, experience and investment process of the management team would affect the performance of the scheme. Poor management of the scheme may jeopardise the investment of each depositor. Depositors should also note that the quality of the Deposit Scheme management is also affected by internal circumstances within the management company such as operational and system matters. Although the occurrence of such events is very unlikely, the Manager seek to reduce this risk by implementing a consistent and structured investment process, systematic operational procedures and processes along with stringent internal control.
Market risk arises because of factors that affect the entire marketplace. Factors such as economic growth, political stability and social environment are some examples of conditions that have an impact on businesses, whether positive or negative. It stems from the fact that there are economy-wide perils which threaten all businesses. Instability of the economic, politic and social situation of a country will affect the repayment ability of financing customer(s). Hence, affect the benefit of depositors indirectly.
Risk of Non-compliance
Non-compliance risk refers to a lack of fiduciary duty on the part of the Manager to ensure conformance with laws, rules and regulations, internal policies and procedures or work ethics standards to the best interest of the depositor(s). In order to minimise this risk, an effective compliance procedures should be implemented and monitored to ensure the Deposit Scheme’s Manager complies with the relevant laws and guidelines at all times.
Credit/ Default Risk
Generally, default risk is the risk of loss due to the Manager’s non-payment or untimely payment of the investment. In the event that the Manager is faced with financial difficulties, their credit worthiness may also decrease. This may lead to a default in the payment of principal and/or profit payment and ultimately a reduction in the value of the Deposit Scheme. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty, and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
The Deposit Scheme is a fixed return deposit account which aims to provide depositor(s) with greater returns in their savings (as compared to deposits in general) that complies to the Shariah principles. The Deposit Scheme is a fixed return Shariah-compliant deposit account that is designed to be in full compliance with SKM’s Guidelines GP9 – Garis Panduan Mengenai Pengambilan Simpanan Khas Dan Deposit Atau Penerimaan Pinjaman (“Recruitment of Special Savings & Loan Deposit Receipt”) and shall use the Shariah principles of Al-Wadiah Yad Dhomanah. Wadi`ah contract is a mechanism that enables a person to entrust his asset to another person for the purpose of safe keeping. In the current practices of Islamic banking, wadi`ah yad dhomanah (safe keeping with guarantee) is a form of wadi`ah which is widely applicable. Under the wadi`ah yad dhomanah contract, the Islamic banking institution (“KoSimpanan”) acts as the safe keeper or trustee for the fund deposited by customer. However, as the customer normally allows the Islamic banking institution (“KoSimpanan”) to utilise his deposited money, the Islamic banking institution (“KoSimpanan”) is obliged to guarantee the deposit. As a reward and token of appreciation for the utilisation of the deposit, the Islamic banking institution (“KoSimpanan”), at its discretion, may give hibah (“proposed profit returns”) to the customer.
The benchmark of the Deposit Scheme is the Overnight Policy Rate (OPR). Information on the benchmark can be obtained from the BNM website.
5.3 Principal Investment Strategy
The monies that are deposited into the Deposit Scheme will be utilised for a Shariah-compliant personal financing scheme called the PapaFinancing Shariah-compliant Financing Facility offered to members of KoSimpanan who are government servants. The Deposit Scheme’s portfolio will be structured as follows:-
a) Maximum of 80.00% of the deposit collected will be utilised for the Financing Facility which fully adheres to the Shariah principles;
b) At least 20% of the deposit collected will be maintained in cash or its equivalent or any expenses recoverable directly from the Deposit Scheme.
The abovementioned allocations will be complied with at all times.. The source of any profits to be earned by Depositors is through the repayment made by customers of the Financing Facility.
Shariah-Compliant Personal Financing Scheme
The main source of income of the Personal Financing Scheme rise from the collection of financing, the management and monitoring of Personal Financing facility is at the core of our investment process. Benefit of the investors under Deposit Scheme will be the main concern for the Manager on every decision made. The Manager responsible to ensure that the level of risk is acceptable and its overall targeted performances that are set against the benchmark. The Personal Financing Scheme is constructed and managed within the pre-determined guidelines and rules, which will be monitored and reviewed regularly by the Manager. The strategies and techniques employed by the Manager include: a) The Manager plays an important role in processing and approving a financing. Since the fund of
financing raise from the deposit collected under Deposit Scheme, processing team responsible to make the most accurate decision on every financing apply. Financing customer’s working discipline, financial status and records are the factors for consideration. A good financing
DETAILED INFORMATION (CON'T)
customer reduces the possibility of non-payment, which directly affect the benefit of investor under Deposit Scheme.
b) The repayment of financing will be reviewed and monitored frequently, at least once a month. In the situation of the financing payment in default and non-payment, several credit control techniques will be taken to reduce the possibility of such financing accounts become bad debts/ doubtful debts. The techniques to be implemented can refer to “Financing Accounts Monitoring Section” on page 23.
c) Financing customer(s) is covered under Group Term Takaful by Hong Leong MSIG Takaful Berhad. The basic coverage is Death and Total Permanent Disability (TPD). Details explanation of the coverage can be easier found in “Takaful Insurance Coverage Section” on page 20. The insurance coverage protects the Manager from the risk of unable payment by financing customer due to the cause under the basic coverage mentioned.
The details and implementation of the personal financing scheme can refer to “Personal Financing Section”.
5.4 Approved Deposit Scheme Size
The total deposit size of the inaugural Deposit Scheme is RM30,000,000.00 only on revolving basis and will be launched progressively. The Deposit Scheme will be allocated into three (3) tranches comprises of RM1.0million, RM4.0million and RM25.0million each tranche on a revolving basis (please refer to Section 7.1 Investing).
5.5 Market Comparison
The table below provides a comparison of the proposed profit returns rate of KoSimpanan the Shariah-compliant Deposit Scheme and that of Islamic financial institutions in general. Provided that the whole deposit tenure is complied with, the proposed profit returns from the Deposit Scheme is higher than that of other Islamic financial institutions. Please note that the information provided below is an illustration and KoSimpanan is not responsible to notify any parties on any changes in relation to the financial institution’s profit returns. The profit return rates of the Islamic Financial Institutions are sourced as at month of October 2011.
Tenure (Month) KoSimpanan’s Proposed
profit returns (Effective Rate) (%)
Islamic Financial Institution’s Profit Returns (Effective Rate)(%)
12 5.50 - 8.00 3.00 3.20
24 5.75 – 8.25 3.00 3.60
36 6.00 - 8.50 3.00 3.90
48 6.25 - 8.75 3.10 3.90
60 6.50 - 9.00 3.20 4.10
5.6 Shariah Investment Guidelines
The Shariah Investment Guidelines are prepared by the Shariah Advisor based on the investment objective and strategy of the Deposit Scheme. At all times, the investment of the Deposit Scheme would be restricted to the Personal Financing scheme which is allowed under Shariah and is prohibited from investing in other financial instruments which do not comply with the Shariah principles.
The Deposit Scheme however may subsequently be allowed to be invested in other acceptable
Shariah-Compliant products upon receiving SKM’s written approval. The Deposit Scheme is also prohibited from investing in interest-bearing deposits and recognising any
DETAILED INFORMATION (CON'T)
In the event that the Deposit Scheme invests in non Shariah-Compliant instruments by mistake, the Deposit Scheme needs to dispose of any non Shariah-Compliant instruments, within a month of knowing the status of the investment. Any gain made in the form of capital gain or dividend received during or after the disposal of the instruments has to be channelled to charitable bodies, as approved by the Shariah Advisor. The Deposit Scheme has a right to retain only the original investment cost and other transaction costs.
Under the Shariah principles, any income or distribution received by the Deposit Scheme from investments in its portfolio which relates to income from non Shariah-Compliant investments as set out above are considered impure income. The impure income is subject to an income purification process as determined by the Shariah Advisor, from time to time and without limitation, where the impure income will be distributed to organisations considered beneficial to the public at large, which are approved and endorsed by the Shariah Advisor.
At the end of each yearly, the Shariah Advisor will review the Deposit Scheme to ensure the Deposit Scheme’s operating procedures and investments comply with the Shariah principles. Upon completion of each review, the Shariah Advisor will deliver an attestation on its opinion in relation to the Deposit Scheme’s compliance with the Shariah investment guidelines.
FEES AND CHARGES
A summary of all fees and charges of the Deposit Scheme are shown below:
FEES AND CHARGES MEMBER
Membership Subscription RM30.00 per month
Entrance Fees RM10.00
Member Share RM100.00
Penalty Replacement of lost Certificate – RM5.00 service charge
Premature Withdrawal upon minimum months completes
Based on MayBank Islamic Berhad one (1)-month fixed deposit profit rate at the time of placement
There are fees and charges involved and depositor(s) are advised to consider them before investing in the Deposit Scheme:- Membership
A depositor who is also KoSimpanan’s member will be entitled for higher proposed profit returns. Monthly subscription of membership fee is RM30.00 as per SKM’s Guideline GP7.
A monthly subscription fee is compulsory on all KoSimpanan’s members upon placement of deposit
using any payment method acceptable to KoSimpanan. Entrance Fee
KoSimpanan’s members will be charged an entrance fee of RM10.00. Payment is via any method acceptable to KoSimpanan.
Subscription to Member Share of RM100.00 is compulsory on all KoSimpanan’s members upon placement of deposit using any payment method acceptable to KoSimpanan.
In the event that a Replacement Certificate of Deposit is required due to lost/damaged, RM5.00 is chargeable being the service charge for the replacement certificate. Charges are payable via any payment mode acceptable to KoSimpanan.
Premature Withdrawal Upon Minimum Months Completed
Only deposits which have met the minimum required tenure and other requirements is entitled for proposed profit returns upon premature withdrawal.
Proposed profit returns on premature withdrawal by depositor(s) shall be based on MayBank Islamic
Berhad one (1)-month fixed deposit profit rate at the time of placement (please refer to the “Withdrawals or Renewals of Deposit Section” of the Deposit Scheme for illustration).
The Deposit Scheme is SOLELY offered to KoSimpanan’s members, who wish to enjoy a higher proposed profit returns compare to the Islamic deposit market rate. Nevertheless, there will be applicable fees and charges to be incurred by members as explained earlier.
Details of the Deposit Scheme are as below:-
1 2 3 4
Approved Deposit Scheme Size RM30,000,000.00 (Ringgit Malaysia Thirty Million) Only on
Maximum Deposit RM1,000,000.00 per member
Deposit Scheme Size Per Tranche (RM ’million)
1.0 4.0 25.0
PROPOSED PROFIT RETURNS (Effective Rate)
2 Years 5.75 6.75 7.75 8.25
3 Years 6.00 7.00 8.00 8.50
4 Years 6.25 7.25 8.25 8.75
5 Years 6.50 7.50 8.50 9.00
Minimum Deposit (RM) 5,000 10,000 50,000 100,000
Minimum Deposit Tenure Six (6) months
Returns on Premature Withdrawal (%) Based on MayBank Islamic Berhad one (1)-month Fixed Deposit profit rate at the time of placement
7.1.1 Who can invest?
The following depositor(s) are eligible to invest in the Deposit Scheme:-
An individual who is at least eighteen (18) years of age and is not an undischarged bankrupt; investing as single or joint-holders;
An individual below eighteen (18) years of age can only be considered as a joint-holder, where the other joint-holder is at least eighteen (18) years of age and must also be his/her immediate family members (eg: mother, father, guardian, sibling, etc). Both joint- holders must also be present during the opening of joint-account.
However, KoSimpanan reserves the rights to reject any application at its absolute discretion. 7.1.2 Can the Deposit Scheme be invested in the name of more than one (1) depositor?
The Deposit Scheme can be invested in the named of more than one (1) depositor. Please refer to Section 7.1.1 (i) for further details.
In the event that the demise of a joint-holder, KoSimpanan is authorised to recognise only the surviving joint-holder who has claims to the deposit as the rightful owner.
In the event that the demise of a joint-holder is a Muslim, KoSimpanan is authorised to recognise wasi/administrator.
7.1.3 How to invest in the Deposit Scheme?
(i) How to invest:- Depositor(s) can forward their applications via mail / email / walk-in to KoSimpanan’s head office. The address, email address and contact number of KoSimpanan’s head office are disclosed in the “Corporate Directory’s Section”.
TRANSACTION INFORMATION (CON’T)
However, deposits into each tranche shall be subjected to the “First-Come-First-Serve” basis, receipt of completed application forms and clearance of payment by the depositor(s) before the stipulated Cut-off Time. KoSimpanan reserves the rights to reject any incomplete application within seven (7) working days from the date of application. (ii) Payment Methods
Cheques or bank drafts or any prove of payment can be mailed to KoSimpanan head office’s address. KoSimpanan must receive the relevant payment within two (2) Working Days from the date of application. Cheque/Bank Draft payment should be made payable in Ringgit Malaysia (RM) to “Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad” and crossed “Account Payee Only”. Bank commission charges (if any) will be borne by the depositor(s). KoSimpanan will process the application upon receipt of completed documents and clearance of payment before the stipulated cut-off time.
7.1.4 Who is the potential depositor?
The Deposit Scheme is suitable for depositor(s) who:- (i) Look for greater returns in their savings; (ii) Depositor(s) with lower and middle level of income source; (iii) Seek to preserve the value of their capital;
7.1.5 What are the key elements on deposit?
Diagram I above shows the three (3) key elements which the depositor(s) should prioritise before investing in the Deposit Scheme, i.e.: the minimum initial deposit amount required, tenure of the deposit placed and proposed profit returns to be received upon maturity date of investment.
7.2 Withdrawals or Renewal of Deposit
There are requirements incurred upon withdrawal or renewal of Deposit. The depositor(s) shall inform the Manager via written notice in the condition of withdrawals or renewal of Deposit as show below:
TRANSACTION INFORMATION (CON’T)
a) Premature Withdrawals
Initial Deposit Amount (RM) Minimum Notice Period
Required upon Request for Premature Withdrawal
Initial Deposit and Proposed Profit Returns Paid upon Premature Withdrawal
Requested Without Notice
Less or equal to 500,000 One (1)-month Two (2)-months from the date received premature withdrawal
More than 500,000 Three (3)-months Three (3)-months from the date received premature
Note: Subject to completion of the minimum months required.
b) Withdrawals Upon Maturity
The Depositor(s) may instruct the Manager to withdraw the initial sum of Deposit with proposed profit returns on maturity subject to the requirement as below:
Initial Deposit Amount (RM) Minimum Notice Period
Required upon Request for Withdrawal
Initial Deposit and Proposed Profit Returns Paid upon Withdrawal Requested
Less or equal to 500,000 Not applicable Five (5) Working Days from the Maturity Date
More than 500,000 One (1)-month Two (2)-months from the date received withdrawal request
c) Renewal of Deposit
There were two (2) options on renewal of Deposit provided by the Manager: (i) Renew initial sum of Deposit and proposed profit returns for the same deposit tenure at the
prevailing profit rate; (ii) Renew initial sum of Deposit for the same deposit tenure at the prevailing profit rate and
proposed profit returns to be collected;
Initial Deposit Amount or Initial Deposit Amount plus Accumulated Proposed Profit
Proposed Profit Returns Paid upon renewal
Initial Deposit Amount Five (5) Working Days from the Maturity Date
Initial Deposit Amount plus Accumulated Proposed Profit Returns
Withdrawals upon maturity or premature withdrawals or renewal of Deposit can only be made at KoSimpanan’s head office by completing and forwarding a Redemption Form. A depositor has to submit his/her redemption request before the Cut-off Time of the Working Day. All redemption requests will be processed upon request receipt. Only accurate and complete requests will be processed. Payment of redemption sum (which include the initial deposit sum and proposed profit returns) shall be made by KoSimpanan within five (5) Working Days from the date of complete request received via a cheque payment issued under the depositor’s individual or joint-names. Any bank charges / fees incurred will be borne by the depositor(s).
TRANSACTION INFORMATION (CON’T)
7.3 Proposed Profit Returns of Deposit
a) Proposed Profit Returns Paid on Premature Withdrawal
Depositor(s) who intend to withdraw the deposit prior the maturity date will not entitle to the full sum of proposed profit returns agreed upon deposit placed. Proposed profit returns on Deposit upon premature withdrawal will be paid based on multiple of six (6) months basis, and subject to the completion of the minimum months required, and computed based on MayBank Islamic Berhad one (1)-month Fixed Deposit profit rate at the time of placement. For example, a Deposit placed for the tenure of twelve (12)-months but pre-maturely withdrawn in eight (8)-month. The depositor(s) will be entitled for a six (6)-months proposed profit returns only. The computation illustration can refers to “Section (b)(ii) Proposed Profit Returns Received upon Premature withdrawal”.
b) Computation of Proposed Profit Returns on Withdrawal
The following computations shows the proposed profit returns paid upon maturity of Deposit or premature withdrawal. However, these are based on certain assumptions being made. Depositor(s) are reminded that no returns shall be paid-out upon premature withdrawal in the event that the minimum months required for such deposit is not being complied with. Assumptions:-
Depositor is KoSimpanan’s Member Minimum Initial Deposit Placed – RM50,000.00 Proposed Profit Returns (Effective Rate) – 7.50% Tenure – 12 months
(i) Proposed profit returns Received Upon Maturity of Deposit:-
Proposed profit returns Received For A 12-Months Tenure Deposit
Proposed Profit Returns Sum of proposed profit returns
Total Proposed profit returns received 3,753.26
Total Amount Received for A Twelve (12)-Months Tenure Deposit
Proposed Profit Returns Total amount received upon
maturity of Deposit (RM)
Initial Sum of Deposit 50,000.00
Proposed Profit Returns 3,753.26
Total Sum Received upon Withdrawal 53,753.26
(ii) Proposed Profit Returns Received Upon Premature Withdrawal:-
(Assuming that the depositor decides to withdraw the Deposit in eight (8) months after completion of the minimum months required and MayBank Islamic Berhad Fixed Deposit profit rate is 2.75% per annum at the time of placement)
Proposed Profit Returns Received For A 6-Months Tenure Deposit
Proposed profit returns computed at 2.75% per annum for a six (6) months tenure
Total Amount Received For A 6-Months Tenure Deposit
Initial Sum of Deposit RM50,000.00
Proposed Profit Returns RM 683.86
Total Sum Received upon Premature Withdrawal RM50,683.86
TRANSACTION INFORMATION (CON’T)
However, all payment of proposed profit returns of Deposit is subject to the requirements mentioned in the “Section 7.2 Withdrawals or Renewal of Deposit”. Payment of Deposit shall be made by KoSimpanan within five (5) Working Days from the date of complete request received via a cheque payment issued under the depositor’s individual or joint-names. Any bank charges / fees incurred will be borne by the depositor(s).
7.4 Unclaimed Monies
All matured deposits (initial deposit sum plus proposed profit returns) which are not claimed by the respective depositor(s) will be treated and recorded as ‘Unclaimed Monies by Depositors” in KoSimpanan’s books. Unclaimed Monies Act 1965 stated that ‘unclaimed monies’ means: (a) All sums of money which are legally payable to the owner and have remained unpaid for a period
of not less than one (1) year after they have become payable; (b) All sums of money to the credit of an account that has not been operated in whatever manner by the owner for a period of not less than seven (7) years; and (c) All sums of money to the credit of a trade account which has remained dormant for a period of not less than two (2) years.
The management company shall annually, not later than the last day of March, lodge with the Registrar at his office a copy of the register which shall contain particulars of all unclaimed monies which have remained unpaid up to the last day of December of the previous year together with all the unclaimed monies reported in the register. Where the unclaimed monies have been lodged with the Registrar, the owner of the unclaimed monies may recover the monies from the Registrar in accordance with the provisions of Unclaimed Monies Act 1965.
7.5 Certificate of Deposit
A Certificate of Deposit shall be issued by the Manager in respect of all deposits accepted after realisation of the cheque/bank draft.
A Certificate of Deposit is non-transferable and must be presented at KoSimpanan’s head office for all
types of withdrawals. It is the responsibility of each depositor to ensure that the Certificate of Deposit is safely kept. Its lost,
theft or destruction must be reported to KoSimpanan immediately in writing. In the event a Replacement Certificate is sought, applicable terms and conditions shall apply (please refer to “Fees And Charges Section”).
In the case of Joint Accounts, request for Replacement Certificate and/or other documents must be
executed by both joint account holders. Any expenses incurred shall be borne by the Depositor(s). Sample of the Certificate of Deposit is as below:-
TRANSACTION INFORMATION (CON’T)
DEPOSITOR(S) NAME : …………………………………………………………………………………………..……………… AMOUNT OF DEPOSIT : RM……………………………………………………………………………………………………… DATE OF ISSUE: …………………… TENURE :…………..….( months) MATURITY DATE: …...……………. PROPOSED RATE OF PROFIT: ……….. (%) Authorised By:- …………………………. ………………………..…………….… DIRECTOR DIRECTOR/GENERAL MANAGER IMPORTANT NOTICE: This Certificate is the property of Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad (“KoSimpanan”). Loss or damaged certificate requires the immediate reporting to KoSimpanan and replacement costs will be borne by the Depositor(s). This original certificate must be presented for any types of withdrawals. If found,
please return this certificate at KoSimpanan’s address as stated above.
SHARIAH-COMPLIANT DEPOSIT SCHEME
KOPERASI SIMPANAN DAN KREDIT BERSATU MALAYSIA BERHAD (W-6-0367)
SUITE 10.03, LEVEL 10, THE GARDENS SOUTH TOWER
MID VALLEY CITY, LINGKARAN SYED PUTRA 59200 KUALA LUMPUR
SERIAL NO : MAMA00001
8.1 Financing Facility’s Objective
The Financing Facility is a low-cost Shariah-Compliant Personal Financing scheme SOLELY offered to new and existing KoSimpanan’s members who are government servant based on the availability fund raised from the Deposit Scheme. The objective of KoSimpanan is to increase the economic interests of its members in accordance with cooperative principles. The Financing Facility aims to offer competitive rates to both depositors and financing customers. The Financing Facility is granted based on the full compliance of SKM’s Guidelines GP7: Garis Panduan Mengenai Pembiayaan Islam Oleh Koperasi (“Islamic Financing of Co-operative”). The Financing Facility is based on the concept of Bai-Al Inah which refers to a contract whereby the seller (KoSimpanan) sells its asset to the buyer (financing customer) at an agreed selling price (inclusive of the profit) to be paid on a deferred payment basis. Immediately, the buyer sells back the asset to the seller at a cash price lower than the agreed selling price (minus the profit).
8.2 Financing Facility Allocation
Maximum of 80.00% of the Deposit Scheme will be utilised to finance the Financing facility.
8.3 Principal Financing Strategy
Our commitment is to offer our member(s) the dedicated, warm and gracious services from our team, together with the Shariah principles. There are times when you need funds immediately. To secure an opportunity, fulfil a need in your lifestyle or may be to handle life’s little twists and turns. We believe that we can take you one step ahead by making it quick and hassle-free to leap into what you want with minimal documents required. Financing to government servants is a secured arrangement due to the repayment method of the Financing Facility is collected via salary deductions through Biro Perkhidmatan Angkasa (BPA). However, the Manager has implemented several risk management strategies to monitor the default/ non-payment financing accounts (please refer “Bad Debts/ Doubtful Debts Section” on page 24 and “Takaful Insurance Coverage Section” on page 20).
8.4 Approved Financing Facility Size and Tenure
The size of the Financing Facility depends on the performance of the Deposit Scheme, with a maximum of 80.00% of the deposit collected being invested into the Financing facility. The Financing Facility is being offered on a revolving basis.
8.5 Financing Criteria
I. Who can apply? KoSimpanan’s member(s) who are government servant;
Malaysia citizens between the ages of eighteen (18) and sixty (60)
years old (subjected to the maximum retirement age);
Permanent servant in service for not less than six (6) months;
Minimum monthly gross salary of RM1,500.00.
II. Features Fixed monthly instalment;
Profit rate: up to 6.50% per annum;
Minimum : RM3,000.00
Maximum : RM150,000.00
DETAILED INFORMATION (CON’T)
Minimum : 24 months
Maximum : 240 months
III. Quantum of
Maximum deduction of 60% from the financing customer(s) monthly
IV. Repayment Method Salary deductions through Biro Perkhidmatan Angkasa (BPA).
Signed Financing Facility Application Form together with:-
Two (2) copies of NRIC (both sides);
Latest month salary slip (original copy and two (2) photocopies);
(Photocopy of NRIC and salary slips must be confirmed by the
respective head of division/department.)
Two (2) copies of BPA Forms
Verification letter of employment status;
Copy of savings passbook or bank statement (for the crediting of
VI. Benefits No guarantor or collateral is required;
Simple and easy application procedures;
Competitive profit rate;
No hidden charges;
No deposit required;
Flexible financing tenure.
VII. Purpose of
and any other purposes which is acceptable to Shariah principles.
VIII.How to Apply? Financing customer(s) may forward their applications via mail or
walk-in to KoSimpanan’s head office.
The availability of the Financing Facility will be on “First Come First
8.6 Market Comparison
KoSimpanan’s Personal Financing scheme Up to 6.50
Financial Institution In The Market 4.99 10.00
Table above shows the profit rate applied by KoSimpanan as compared to the other financial institutions in the personal financing market. While KoSimpanan’s personal financing profit rate to government servants is not the lowest, it does however provide a reasonable alternative which is not a burden to the members.
8.7 Shariah Financing Guidelines
The compliance with Shariah principles is an integral feature in Islamic Finance. An effective and conducive Shariah framework is imperative in assuring such compliance. It will underpin a comprehensive and wholesome development of this sector. An effective Shariah framework will harmonise the Shariah interpretations, strengthen the regulatory and supervisory oversight of the industry and will also foster and nurture a pool of competent Shariah advisors.
DETAILED INFORMATION (CON’T)
To ensure the smooth running of the Shariah-Compliant Personal Financing scheme, KoSimpanan is responsible:- (a) To refer all Shariah issues to the Shariah Advisor;
(b) To adopt the Shariah Committee's advice; (c) To ensure that product documents be validated;
(d) To have a Shariah-Compliant Financing Manual; (e) To provide access to relevant documents; (f) To provide sufficient resources. The Financing facility is in full compliance to SKM’s Guidelines GP7: Garis Panduan Mengenai
Pembiayaan Islam Oleh Koperasi (“Islamic Financing of Co-operative”).
FEES AND CHARGES
The following describes the fees and charges that a member will directly incur when he/she applies for the Financing facility:
Fees and Charges
Monthly Member Subscription RM30.00
Member Subscription (minimum 6-months advance) RM180.00
Member Share RM100.00
Biro Perkhidmatan Angkasa service charge 0.6% on monthly instalment charged
Processing Fee RM100.00
Entrance Fee RM10.00
Takaful Insurance Coverage 4.00% from the approved financing sum
The above are fees and charges applicable to members and members are advised to consider them before applying for the Financing Facility. Member Subscription
According to Koperasi By-Law, an RM30.00 monthly subscription fee is compulsory for all members of KoSimpanan and the payment will be collected via repayment method chosen.
For members who join KoSimpanan for less than six (6) months period and who are applying for the Financing Facility, a six (6) months advance payment (or RM180.00) of member subscription fee is required and will be paid through direct deduction from the approved financing amount.
KoSimpanan’s members are required to subscribe Member Share of RM100.00 on a one-off deduction according to Koperasi By-Law. Member Share will be directly deducted from the financing amount approved.
Biro Perkhidmatan Angkasa Service Charge
The repayment method of financing via salary deduction through Biro Perkhidmatan Angkasa will be charged for 0.6% service charge on monthly instalment deducted across the financing tenure until the financing being fully settled or redeemed.
KoSimpanan will be entitled for RM100.00 processing fee on each personal financing approved. Such fee will be directly deducted from the financing amount and treated as an income.
A non-refundable entrance fee of RM10.00 will be collected through direct deduction from the financing amount approved.
Takaful Insurance Coverage
The Takaful Insurance Coverage will be undertaken by Hong Leong MSIG Takaful Berhad (“the Operator”) under Group Term Takaful and the Manager will be the Takaful Contract Holder. The coverage basically covers Death and Total Permanent Disability (TPD). The coverage will be directly deducted from the financing amount approved. No refund is payable to members on early redemption of the Financing Facility. The scope of coverage under Master Certificate Schedule as below:
FEES AND CHARGES (CON’T)
Death Total Permanent Disability
Min RM3,000.00 up to RM150,000.00 subject to outstanding financing amount
Min RM3,000.00 up to RM150,000.00 subject to outstanding financing amount
i) Death Benefit
While this Takaful Insurance Coverage is in full force and effect, should the Participant prior to attaining the age of seventy-one (71) years, notification and proof of death (at the claimant’s expense) must be filed as soon as practicable at the Head Office of the Operator in Kuala Lumpur. The Sum Covered of the Death Benefit as per Master Certificate Schedule shall be payable. Death Exclusions
Should the participant, whether sane or insane commits suicide within one (1) year from the date of inception of the Certificate, dies as a result of Acquired Immune Deficiency Syndrome (AIDS) or other sexually transmitted disease, no Death benefit shall be payable.
ii) Total and Permanent Disability Benefit
While this Takaful Insurance Coverage is in full force and effect, should the Participant prior to attaining the age of sixty six (66) years become totally and permanently disabled due to all causes only, as hereinafter defined, and has remained so disabled continuously for a period of not less than six (6) months, then the benefit payable under this Takaful Insurance Coverage shall be the benefit that would have been paid had death occurred at the date of disablement subject to the following conditions:-
a) Immediately after the happening of the Total and Permanent disability, full particulars thereof
must be notified in writing to the Operator at its Head Office, together with the then address and whereabouts of the Participants and within thirty (30) days after the happening of such Total and Permanent Disability.
b) Any Medical Officer of the Operator shall be allowed to examine the Participant in respect of any alleged disability in the manner and at the times the Medical Officer may require.
c) No suit on an account of alleged Total and Permanent Disability shall be maintainable, if commenced before the expiration of one (1) year or after the expiration of two (2) years from the date of the receipt of notification by the Master Certificate Holder of the happening of the Total and Permanent Disability.
d) If there is a failure to comply with any one of the foregoing provisions, no claims on account of Total and Permanent Disability shall arise or be valid or enforceable.
e) The Disability above referred to must be Total and Permanent, and such that there is neither then nor at any time thereafter, any work, occupation or profession that the Participant can ever sufficiently do or follow to earn or obtain any wages, compensations or profits. The occurrence of any of the following shall also be considered as Total and Permanent Disability: a. Total and irrecoverable loss of the sight of both eyes; or b. Irrecoverable loss of two or more limbs by amputation at or above wrist and ankle; c. Total and irrecoverable loss of the sight of one (1) eye and irrecoverable loss of one (1)
limb by amputation at or above wrist and ankle; d. Irrecoverable total paralysis.
The Disability must last continuously for a period of at least six (6) months, to be considered permanent. The Disability shall nevertheless be understood to have commenced on the first day that such disability occurred.
FEES AND CHARGES (CON’T)
Should Total and Permanent Disability occur as a result of any of the above three (3) conditions (ie. e)(a,b,c,d)), payment of the benefit shall be made with immediate effect. TPD Exclusions
No Takaful benefit shall be payable if Total Permanent Disability results directly or indirectly from:
a. intentional self-inflicted injury or any attempt threat while sane or insane; or
b. the influence of alcohol, narcotics or misuse of drug prescribed by a legally qualified medical practitioner; or
c. engaging in flying for the purpose of any trade or technical operation or hobby or in any other aerial activities except as a pilot, aircrew or as a fare paying passenger on a regularly scheduled flight of a commercial aircraft or charter service; or
d. any breach of the law, which carries capital punishment by the Participant; or
e. HIV infection, AIDS or any AIDS related complex or any AIDS related condition; or
f. military or naval service in time of declared or undeclared war, while under order for warlike operations or restoration of public order.
iii) Pre-Existing Illness
Pre-Existing Illness shall mean any injury or illness a) which existed or have developed prior to the effective date of coverage; or b) where there exists manifestation of illnesses prior to effective date of coverage; or c) which based on normal medically accepted pathological development of the illness, such
illness would have existed prior to effective date of the coverage.
Notwithstanding anything to the contrary in the Certificate, no benefit shall be payable if the death or Total Permanent Disability (TPD) is due to Pre-Existing Illness unless at the time of death or TPD, the Participant has been covered for more than twelve (12) months from the effective date of the coverage and the Participant has duly disclosed such injury or illness and has been fully underwritten and accepted in writing by the Company prior to the inception of the coverage. Pre-Existing Illness will only be applicable for cases where the Sum Covered is more than the Cover Limit.
Diagram II - Process Flow
Diagram II above demonstrates the implementation of the Financing Facility. The detailed process of the above is clarified below:- (i) Received Applications
Potential financing customers can forward their applications via mail/ walk-in to KoSimpanan head office. The address and contact number of the head office are disclosed in the “Corporate Directory’s Section”. All applicants are compulsory to register as KoSimpanan members to enjoy the scheme. However, membership registration is subject to the Boards approval.
Sorting and checking of relevant documents to make sure complete application documents received.
(ii) Internal Process
The processing team will have employment status, credit and financial status checking on the applicant(s).
Applications received in complete will be proceed within five (5) Working Days. However, all applications and approvals will be treated under the “First-Come-First-Serve” basis. KoSimpanan reserves the rights to reject any incomplete applications or those which fail to meet all requirements as stated in the “Section 8.5 Financing Criteria”.
(iii) Decision Making
Those applications meet all requirements will be approved and arrange for disbursement. On the other hand, those applications do not meet the requirements requested and the Manager is
not confident with the repayment capability of the applicant(s) will be rejected. Rejected applications will be returned to the applicant(s).
The Manager reserves the rights to reject any application at its absolute discretion.
(iv) Disbursement and Record Keeping
Disbursement will be arranged within five (5) Working Days upon financing is approved. Disbursement of net financing proceeds will be via a cheque payment under the financing
customer’s name. All payments are payable in Ringgit Malaysia (RM). Cheque will be directly banked-in into the financing customer’s bank account as per advice and any bank commission /charges will be borne by the financing customer.
A copy of Financing Agreement will be sent to financing customer’s mailing address.
Accounts Fully Settled
Bad Debts/ Doubtful debts
Reject - Returned Documents
PROCESS FLOW (CON’T)
BPA’s salary deduction authorised form or Notice Instruction for Salary Deduction will be sent to Biro Perkhidmatan Angkasa and respective employers to arrange for the salary deduction.
Other relevant documents of the financing disbursed will be kept as record and future reference.
(v) Financing’s Accounts Monitoring
All financing account(s) will be recorded and monitored by using financing system. Bad Debts/ Doubtful Debts
Repayment records of the financing customer(s) will be checked at least once a month to reduce the possibility of bad debts or doubtful debts. Classification of financing accounts as Non-Performing shall be in accordance to prevailing banking practice as below: a) A financing account shall be classified as a Non-Performing Financing (NPF) when three (3)
instalments are due and unpaid from the date of the first payment is expected to be received. b) For NPF accounts which are six (6) months in arrears, a 50.00% provision of doubtful debts
shall be effected on the seventh (7th) month of default.
c) For NPF accounts which are twelve (12) months in arrears, a 100.00% provision of doubtful debts shall be effected on the thirteen (13
th) month of default.
d) For NPF accounts exceeding twenty-four (24) months in arrears, they will be written-off from the books.
Several credit control strategies will be taken before and after the financing accounts become NPF’s accounts: a) Telephone calls and/or site-visits will be performed for financing accounts which are
delinquent at two (2) months in arrears or below; b) Reminder Notice will be sent via registered mail to financing customer(s) in order to bring the
financing accounts up to date; c) After the telephone calls and reminder notice, debt collection agency will be appointed to
encourage financing customer(s) to get in touch with the cooperative and make the required arrangements to bring their financing accounts up to date;
d) Upon the delinquent accounts reaching three (3) months in default, the account shall be referred to a panel lawyer for litigation process to be initiated;
e) Litigation process shall include the issuance of a Letter of Demand, Filing of Summons, securing of judgment and the execution of such judgment. All costs incurred will be borne by financing customer(s).
Accounts Fully Settled Upon Mature
The Financing facility is offered on a revolving basis. Therefore, all the financing accounts fully settled upon the maturity date will be utilised for new financing application. However, the approval on new application is subject to the Manager’s decision.
Financing customer(s) may early settle the outstanding financing account at any time by sending their request via mail or fax to KoSimpanan’s head office. The mailing address and fax number of KoSimpanan can be referred to the “Corporate Directory’s Section”.
Early Redemption Statement will be given to the financing customer within five (5) Working Days upon receiving of the request.
The Manager reserves the rights to determine the rebate given on early redemption cases, which is fair and reasonable.
Diagram III above shows the modus operandi of the Deposit Scheme against the Financing. The detailed implementation flow is descripting below:- (i) The Deposit Scheme is strictly offered to existing or new KoSimpanan’s member(s) only to enjoy the
higher proposed profit returns compared to the market rate. The maximum fund to be collected is RM30.0 million on a revolving basis. The Deposit Scheme will be launched progressively. Details of the Deposit Scheme can refer to the “Deposit Scheme- Section 5.0 Detailed Information”.
(ii) Maximum of 80.00% of the fund collected in the Deposit Scheme will be utilised to provide Shariah-compliant Personal Financing to KoSimpanan’s member(s) who work at government sector. The Financing Facility will be launched on a revolving basis and ‘First Come First Serve” basis. Details of the scheme can refers to Personal Financing “Section 8.0 Detailed Information” and” Section 10.0 Process Flow”.
(iii) However, at least 20% of the deposit collected will be maintained in cash or its equivalent or any expenses recoverable directly from the Deposit Scheme.
COMPLIANT PERSONAL FINANCING FACILITY
Strictly OFFER to KoSimpanan’s member only
Fund size: Maximum of 80.00% from the Deposit Scheme fund size on a revolving basis
DIAGRAM III – MODUS OPERANDI
DEPOSIT SCHEME Strictly Offer to KoSimpanan’s members
only Fund size: Maximum of RM30.0 million
on a revolving basis and launched progressively
CASH OR EQUIVALENT At least 20.00% of the Deposit
collected from the Deposit Scheme
MANAGEMENT AND ADMINISTRATION
12.1 The Manager
Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad (KoSimpanan) is the Manager of the MamaSavings Shariah-Compliant Deposit Scheme and PapaFinancing Shariah-Compliant Financing Scheme. (i) Registration
KoSimpanan is registered under the Co-Operatives Societies Act, 1993 on 10 August 2005, initially under the name of Koperasi Pengguna-Pengguna Institusi Kewangan Berhad. Subsequently, on 12 April 2009, the Co-operative’s name was changed to Koperasi Hidayah Malaysia Berhad. However, the Co-operative’s name was changed again to Koperasi Simpanan Dan Kredit Bersatu Malaysia Berhad on 15 Febuary 2012.
(ii) Main Function
One of the main functions of KoSimpanan is to provide financial related services to its members. On 15 March 2010, KoSimpanan’s first Ar-Rahnu X’Change outlet at Taman Sri Muda, Shah Alam, was opened for business. With the good response from public, KoSimpanan plans to open more of such outlets in the near future.
In June 2010, KoSimpanan began to provide Shariah-Compliant Personal Financing Facility to its members, where repayments are via salary deductions through Biro Perkhidmatan Angkasa. Response from members was encouraging and KoSimpanan intends to expand such portfolio upon securing more funding in future. Financing Services Status as at 30 June 2012:-
Criteria Pawn Broking-i Ar-Rahnu X’Change Financing Scheme
Shariah-Compliant Personal Financing Scheme
No. of Financing Accounts 3,752 256
Financing Disbursed RM15,502,598 RM16,827,056
Balance of Financing due RM5,957,178 RM15,348,480
The number of member of KoSimpanan as at 30 June 2012 comprises of 610 members who are government servants, self-employed, fixed-income employees and etc.
(iv) Primary Responsibilities
The primary responsibilities of KoSimpanan as the Manager includes (but not limited to):- Ensuring that the Deposit Scheme and Financing Facility are managed within the ambit of SKM’s Guidelines GP9: Garis Panduan Mengenai Pengambilan Simpanan Khas Dan Deposit Atau Penerimaan Pinjaman (“Recruitment of Special Savings & Loan Deposit Receipt”), and GP7: Garis Panduan Mengenai Pembiayaan Islam Oleh Koperasi (“Islamic Financing of Co- operative”) respectively. Ensuring that all relevant internal and external policies, procedures, guidelines, applicable laws and Shariah compliances are adhered to at all times for all products. Maintaining proper and accurate records of members, depositors, financing customers and other relevant accounts at all times. Promoting all products in accordance to good business ethics. Executing good business strategies to ensure all products achieve its respective objectives which benefit both members and the Manager. Providing essential reports or notices to all depositors and financing customers on the current standings of their accounts. Ensuring the interests of the depositors is well protected at all times and their investments generate the targeted returns. Ensuring that all staff is well-trained and fully conversant in all aspects of the products in order to mitigate lapses. Ensuring that periodic audit checks and reviews are conducted to mitigate deviations from
MANAGEMENT AND ADMINISTRATION
prevailing policies and procedures or the risks of fraudulent transactions, which could result in losses incurred by members and the Manager as well.
12.2 Summary of KoSimpanan’s Financial Position
Below is the summary of past performances of KoSimpanan based on audited accounts for the past three (3) financial years ended 30 April and draft audited account for the year ended 30 June 2012 ( KoSimpanan’s financial year end has changed from 30 April to 30 June and will be effective for the financial year end 2012 and onwards) K
KoSimpanan was actively involved in Ar-Rahnu and Personal Financing businesses only in March 2010 and June 2010 respectively. Therefore, it was inevitable that losses were recorded as at April 2011. Nevertheless, KoSimpanan liquidity status improved progressively for the past three (3) financial years as stated above. However, KoSimpanan has reach a pre-tax profit of RM209,190 for the financial year ended June 2012 with the increase in of 1.53 times in assets against year 2011.
12.3 Budgeted Income for Three (3) Years Ending June 2014
Below is the forecast income of KoSimpanan for three (3) years period from year ending June 2013 until June 2015.
KOPERASI SIMPANAN DAN KREDIT BERSATU MALAYSIA BERHAD BUDGETED INCOME STATEMENT FOR 3 YEARS ENDING 30 JUNE 2015
June 2013 June 2014 June 2015
Income 4,664,000 7,928,800 11,893,200 Deduct: Cost of Sales (2,698,000) (5,396,000) 8,903,400
Gross Profit 1,966,000 2,532,800 2,989,800
Staff cost 552,000 634,000 760,800 Overhead cost 103,000 117,000 140,400 Other expenses 106,900 138,900 166,680
761,900 889,900 1,067,880
Profit/(Loss) for the year 1,204,100 1,642,900 1,921,920 Add/(Deduct): Accumulated Profit/(Loss) (224,047) 982,092 2,622,992
Net Profit/(Loss) 980,092 2,622,992 4,544,912
The above forecast is based on the current practice and assumption of: a. Two (2) project Tabung Modal Pusingan commence in October 2012 and Jan 2013 respectively; b. Two (2) new Ar-Rahnu X’Change outlets to be opened in June 2013; c. MamaSavings and PapaFinancing Plan will be commenced in Jan 2013; and other new plans which in the midst of preparation by KoSimpanan.
Asset 1,874 763,313 11,878,716 30,108,170
Liability 6,575 631,955 10,426,183 27,118,647
Member Share Capital 14,500 300,000 1,866,600 3,021,900
Accumulated Profit/(Loss) (19,201) (168,642) (433,237) (224,047)
Pre-tax Profit/(Loss) 19,054 (149,441) (264,595) 209,190
Profit/(Loss) After Tax 19,054 (149,441) (264,595) 209,190
Liquidity Ratio (%) 0.29 1.18 6.13 3.04
MANAGEMENT AND ADMINISTRATION
12.4 The Board of Directors
(i) Responsibility of the Board
The Board of Directors takes an active part in the affairs of KoSimpanan and all the activities under its management. The Board of Directors meets at least once every three (3) months to receive recommendations and reports on its ongoing and future activities, and deliberations on issues raised which require their further directions. The detailed day-to-day running of KoSimpanan is left largely with the management team.
(ii) Directors’ Profiles
There are six (6) members of the Board. The profiles of the Board Members are set out below:-
Board of Directors Position
Dato’ Wan Ismail Bin Abdul Rahiman Chairman Tee Guan Pian Deputy Chairman Chong Voon Wah Secretary Yong Yoke Kheng Treasurer Mohd Hamizane Bin Mohd Ariffin Board Member Anuar Bin Abu Bakar Board Member
Dato’ Wan Ismail Bin Abdul Rahman, aged 62, is the current Chairman of KoSimpanan since December 2005. He started his working career with an international accounting firm, Turquand, Young & Partners (now known as Earnst & Young) as an Articles Clerk from 1971 -1974. His vast working experience (mainly in managerial positions) was in the commerce, banking and financial services industry. He was with Mayban Finance Berhad for about 22 years and headed the premier finance company for 18 years in capacities such as the General Manager, Executive Director, Chief Executive Officer and Director until his retirement in 2004. In June 1999, he was seconded to Oriental Bank Berhad (now known as Hong Leong Bank Berhad) and served as its Executive Director / Chief Executive Officer until February 2000. Prior to joining Mayban Finance Berhad, he was also the Accountant and Finance Manager for Texas Instruments Malaysia Sdn Bhd and Permodalan Bersatu Berhad respectively. He was also a Director of Aseambankers Berhad, AseamLease Berhad, Cagamas Berhad, Syarikat Prasarana Negara Berhad, Permodalan Terengganu Berhad, Financial Information Services Sdn Bhd (FIS) and SME Bank Berhad and its group of companies. He was also a Council Member of Institut Bank-Bank Malaysia (IBBM) and the Association of Finance Companies (AFCM). His professional memberships include being a member of the Malaysian Institute of Certified Public Accountants (MICPA) and a Fellow Member of the Association of Certified Accountants (FCCA). Deputy Chairman
TEE GUAN PIAN, aged 48, is currently Senior Partner of UHY Chartered Accountants and Member of Malaysian Institute of Accountants, Member of The Malaysia Institute of Certified Public Accountants, Member of the Chartered Tax Institute of Malaysia and a Member of the Malaysian Institute of Management. Mr Tee has 20 years of professional experience which includes 5 years experience as bank examiner with Bank Negara Malaysia (BNM), inspecting financial institutions under the purview of Bank Negara Malaysia and assessment on their soundness and solvency. Subsequently, he joined an International accounting firm, Morison Anuarul Azizan Chew & Co (MAAC) where he was the Partner-in-charge for various audit and other assignments involving banks and financial institutions. During his tenure as Partner in MAAC, he was the Special Administrators appointed by Pengurusan Danaharta Nasional Bhd. for a few public companies listed on Bursa Malaysia.
MANAGEMENT AND ADMINISTRATION
He is currently leading the assurance and consulting services as well as business advisory engagements such as mergers and acquisitions and listing on the Securities Exchange and corporate exercises. He is also sit on the Board of Koperasi Usahawan Kecil dan Sederhana Malaysia Berhad. Secretary
Chong Voon Wah, aged 32, is the Secretary of KoSimpanan. He is also an Associate Director of Boardroom.com Sdn Bhd and Associate member of Malaysia Institute of Chartered Secretaries and Administrators (“ACIS”). Treasurer
Yong Yoke Kheng, aged 43, is the Treasurer of KoSimpanan who holds an LCCI Diploma. His working experiences basically focused on accounting areas. He joined South East Asia Insurance Berhad as an Accounts Clerk for about 2 years. Later, he moved to Mayban Assurance Berhad as an Accounts Executive and remained there for about a year. In 1995, he was appointed as the Accounts Manager for Tech Energy Systems Sdn Bhd for about three (3) years before venturing on his own, providing accounting services to interested clients up until now. Board Member
Mohd Hamizane Bin Mohd Ariffin, aged 37, is a Board Member of KoSimpanan since December 2006 and holds a Diploma in Information Technology. He had ten (10) years working experience in AmBank (M) Berhad, primarily in Sales & Marketing aspects of the Bank. Presently, he is running his own business. Board Member
Anuar Bin Abu Bakar, aged 49, is a Board Member of KoSimpanan since Dec 2006. He obtained his Bachelor’s Degree in Accountancy (Hons) in 1997 from UiTM. He has twenty (20) years of experience in Accounts & Finance. His previous postings include being an Accounts Executive for MMC Marketing Sdn Bhd, a self-employed Financial Advisor and as a Senior Finance Manager with ACE Polymers Group of Companies. Presently, he is the Financial Controller of NS Construction Sdn Bhd.
12.5 Key Management Staff
(i) Responsibility of the Management Staff
The management team is responsible in managing all KoSimpanan’s daily activities. Collectively, it has been granted with discretionary authority to decide on matters relating to KoSimpanan, in compliance to other existing rules, guidelines, policies and procedures issued by the relevant authorities. The team reports to the Board on a monthly basis on all matters relating to the operations of KoSimpanan for further review and directions.
(ii) Management Staff’s Profiles
Tan Tong Lang, Nicholas, aged 36, holds a Bachelor of Arts (Hons) Degree in Business Administration. He is an associate member of the Malaysian Institute of Chartered Secretaries and Administrators. He has eight (8) years of experience in secretarial services, provided to both public and private limited companies. Currently, he is also the Executive Director of Boardroom.com Sdn Bhd and the General Manager of KoSimpanan, assisting the Board in overseeing and monitoring the overall operations of KoSimpanan. As the General Manager of KoSimpanan, he shall and may, subject to the Board’s discretion and to applicable laws and regulations, exercise all the powers and authority in the management of all activities of KoSimpanan.
MANAGEMENT AND ADMINISTRATION
Lau Siew Fong, aged 32, was appointed as KoSimpanan’s Manager in June 2010. She holds a Bachelor’s Degree in Business Administration (majoring in Finance) from UPM’s out-campus program and LCCI Diploma. She has seven (7) years experience in accounting, processing and marketing of personal financing products. Her previous postings include being an Accounts Clerk and as an Assistant Manager (Accounts) with another co-operative and a Manager of Tanjung Cenggal Sdn Bhd which was a master dealer for a co-operative providing Personal Financing facility to government servants.
A Shariah Advisor shall be appointed by KoSimpanan to ensure that all terms and conditions of the MamaSavings Shariah-Compliant Deposit Scheme, and the PapaFinancing Shariah-Compliant Financing Scheme are in compliance to applicable Shariah Principles. Such advisor will also provide relevant updates and changes in ensuring that both products meet prevailing Shariah requirements in tandem with market demands.
APPROVALS AND CONDITIONS
This Prospectus has been prepared in accordance to SKM’s Guidelines GP9: Garis Panduan Mengenai Pengambilan Simpanan Khas Dan Deposit Atau Penerimaan Pinjaman (“Recruitment of Special Savings & Loan Deposit Receipt”) and GP7: Garis Panduan Mengenai Pembiayaan Islam Oleh Koperasi (“Islamic Financing of Co-operative”) and received SKM’s written approval on 27 June 2012. It has also received other approvals from other relevant authorities.
NOTE: AMENDMENTS OR CHANGES TO THE TERMS AND CONDITIONS OF THIS PROSPECTUS OR TO APPLICABLE PROCEDURES, RULES & REGULATIONS SHALL BE MADE IN WRITING BY THE MANAGER AND APPROVED BY SKM (OR ANY RELEVANT AUTHORITY/IES) AND SHALL BE EFFECTIVE FROM ITS APPROVAL DATE.