Malaysia Budget 2012 was finally tabled last Friday amidst high expectations from Malaysians of all walks of life. Civil servants, particularly, were anticipating a repeat of year 2007’s one-off and broad-based salary revisions which pushed their salaries up by between 7.5% and 35%. However, the measures in Budget 2012 turned out to be slightly different from such expectations — it spelt out a new annual increment structure that will lay a strong foundation for greater flexibility in civil servants’ remuneration in the long run. This is targeted at increasing productivity in the public sector which is generally positive in enhancing government effectiveness in the long term.

Greater flexibility in the employment terms of civil servants (such as the exit policy for underperformers) is a welcome move indeed, although its implementation might meet with initial hurdles as the public sector adjusts to the new employment culture. Overall, with prospects of better remuneration, civil servants are set to get a better deal in their employment if such measures were to be properly implemented.

An important implication of better remuneration for highly productive government employees would naturally be the spillover of higher private consumption in the future. It is generally known that the low- and middle-income segments of the population have the highest marginal propensities to consume (MPC). With Malaysia having one of the highest MPC in the region of about 0.53 (according to our estimate), private consumption will likely continue its role as the major pillar that will spearhead the economy in the coming years.

In the short term, however, measures provided by Budget 2012 will not cause a big jump in private consumption, at least not to the level that would have happened if a broad-based salary revision were to be given.

The mounting concerns about the ever-rising cost of living are addressed by measures such as the provision of subsidies not only for food, but also for petroleum products and cash assistance. As such, speedy rationalisation of subsidies is not top of the government’s priority list.

Due to the government’s financial constraints, we observed that many benefits were dished out on a discriminatory basis. In particular, retirees, senior citizens, taxi drivers and the lower-income groups are supported via various measures to ensure that they can withstand the rising cost of living.

We think positively of such measures, but feel that doubling efforts to contain price increases would trump monetary adjustments in tamping inflation in the long run. Indeed, the latter move is unsustainable in that the government would have to continuously fork out higher compensation if prices were to continue escalating over the years. As such, stricter enforcement of price controls and the Anti-Profiteering Act should be the government’s next logical focus.

We are also of the view that one-off cash payments to the poor and needy, while coming in handy at times like this, will not translate into sustained value in the economy as they are not tied to productivity-driven incentives. We are hopeful that such generosity on the government’s part will not promote a “government-dependent” mentality among Malaysians which would consequently breed complacency, a definite negative in the nation’s drive towards attaining high-income status. We feel positive about the measures aimed at improving the living standards of the low-income group, although we think that there is a distinct lack of such initiatives to ameliorate the financial burdens of the middle-income group, particularly those who reside in high-cost urban areas.

The measures instituted to address the problem of inadequate savings amongst retirees are generally positive, as studies show that a whopping 70% of all retirees tend to exhaust their savings within 10 years. A new tax relief of up to RM3,000 on contributions to a Private Retirement Scheme (PRS) and insurance annuity for 10 years, as well as tax deductions on employers’ contributions to a PRS for their employees and exemptions on income of the Private Retirement Fund are meant to lighten retirees’ financial burdens, decidedly a positive for private consumption going forward. We also feel that the mandatory increase in employers’ EPF contributions is bearable for businesses.

We are intrigued by the government’s optimistic target of 2012’s budget deficit of 4.7% of gross domestic product (GDP), which is a shade lower than our projection of 4.9% of GDP, although we do not feel that such a target is out of reach, judging by Malaysia’s relatively high revenue-to-GDP ratio which is among the highest in the region. However, the attainment of this result is predicated on the achievement of actual growth in 2011, which we view to be in the lower range of the government’s projection.

The sharp reduction in the budget gap is probably aimed at taking some pressure off a possible sovereign re-rating, in our view. However, there are reasons for not being overly concerned about Malaysia’s debt and deficit positions.

First, the various macro matrices commonly used for sovereign evaluation indicate that Malaysia still stands rather favourably in relation to its regional peers. At the same time, government revenue as a percentage of GDP is among the highest in the region. As for its debt position, almost 96% of total debt is domestic debt, and second, financing the debt through Malaysian Government Securities (MGS) is never difficult as there is strong demand for the instruments from financial institutions like banks, insurance companies and other government-linked investment companies.

Following the government’s persistent budget deficit, albeit smaller than in previous years, we think that sustained MGS issuance momentum for 2012 will address continuing investor demand for high-quality fixed-income instruments amidst heightened uncertainty that is weighing on corporate debt-raising in the domestic bond market. It is truly a sound strategy to borrow domestically, given the current turmoil in global financial markets that has been exacerbated by sovereign-debt concerns.

While there is a noticeable absence of any groundbreaking capital market-specific measures, the incentives for the Kuala Lumpur International Financial District (KLIFD) could sow the seeds for the future competitiveness of Kuala Lumpur and Malaysia as a global financial centre. Capital market-specific measures were the extension of tax exemptions on the issuance and trading of foreign currency sukuk by three years and tax deductions for expenses incurred in the issuance of sukuk wakala for three years starting 2012. The income-tax exemptions for KLIFD, stretching over a 10-year period, underscores the forward-thinking approach on the part of the government to ensure Malaysia remains a vibrant and competitive financial hub in the years to come.

On the hot issue of the budget deficit, we feel that the government should take a long-term perspective about containing future expenditures to ensure that its fiscal position will continuously be in check. For instance, medical expenses incurred by an ageing population will represent a significant burden on government coffers due to changing demographics in the years to come. As such, we feel that measures such as withdrawals from the Employees Provident Fund (EPF) for the purchase of medical insurance should not only be introduced, but also be actively promoted by the government.

At the same time, we opine that the government needs to exercise stricter control on the size of the public sector so as not to cause undue acceleration in operating expenditure going forward. In addition, the focus on monitoring expenditure on supply and services should never waver. Indeed, this suggestion stems from the National Audit Department’s report which indicated that there is considerable room for improvement in the supervision of certain areas of expenditure.

We applaud the government’s efforts to address the citizenry’s housing needs – however, the revision to the real property gains tax (RPGT) structure is too mild to be effective, in our view. The 5% increase in the tax imposed on those who sell their properties within two years of acquisition will not likely have a material effect, especially on those who speculate in this sector.

While we are cognisant of and understand the opposing perspectives (particularly from industry players who are concerned about the repercussions of the higher RPGT), we hold fast to the view that the proposed revision will still not address the froth in the property sector at this juncture. Indeed, with the prevalence of relatively easy credit ties provided by the banking sector,
property prices look set to remain on their upward trajectory in the near term.

We deem the overall macro assessment as fair, although the government seems more optimistic than private economists about the strength of private investment. Indeed, despite experiencing a strong rebound in 1H2011, a possible increase in risk aversion (should the global economy take a turn for the worse) could well dampen the sustainability of private-investment strength.

We also maintain that the speed at which construction projects are implemented is of paramount importance in ensuring growth proceeds apace. In terms of GDP growth, our projection of 5.2% for 2012 is in the lower range of the government’s forecast as we remain cautious about the investment momentum that is not attributed to any lack of efforts on the government’s part, but due to the return of risk aversion within the investor fraternity.

– by Malaysian Rating Corporation Bhd

Malaysia Company of Malaysia Budget 2012 Overview Details

Malaysia Budget focuses on long-term growth
KUALA LUMPUR — Prime Minister Najib Razak has unveiled Malaysia’s 2012 Budget that isn’t populist but focuses on long-term growth, contrary to market expectations.

Malaysia budget expected to tackle inflation fears
KUALA LUMPUR: Malaysian premier Najib Razak is expected to unveil measures Friday to spur domestic demand and help consumers cope with inflation in a budget likely to be his last before he calls snap polls.

Najib says Budget 2012 to ease cost of living, but experts sceptical
Stung by accusations that his administration was spendthrift and only zoomed in on pie-in-the-sky projects worth trillions that could only see the light of day in the very distant future, Prime Minister Najib Razak promised that Budget 2012 would be down-to-earth and target reducing the cost of living for the masses.

Bank Negara Malaysia (BNM) on March 18, 2011, announced new guidelines for credit card new application measures.

• 21 years of age, earning more than RM 2,000 or annual income of more than RM 24,000 are eligible to apply for credit cards. (Before the annual income of RM 18,000)
• Monthly income of RM 3,000 or less, can only apply for two credit card banks, credit card limit can only be paid double. (Before the annual income of RM 36,000 and credit card number is not restricted).
• The monthly income of more than RM 3,000 was not affected.

Under the new credit card regulation, a monthly income of RM 3,000 or less can only choose two bank credit card, if a third bank credit card, must make a choice, to cancel a credit card this year before December 31, must select one bank to cancel the credit card. If you do not cancel after the expiration of the period when the credit card reached, the credit card will automatically expire. In addition, the main and subsidiary card of the swipe card limit will be divided into half.

Charge Card or Debit Card was not affected, so the monthly income of less than RM 2,000 can still use Debit Card to shop, to the new guidelines can reduce credit card debt or for young people, the new regulation to overcome credit card debt problems for young people financial planning will certainly help.

Source: BNM Press Statement

Malaysia Corporate Identity Number, MyCoID refers to the company incorporation number which is used as a single source of reference for registration and transaction purposes with other relevant Government agencies. With the MyCoID, the public can utilize a single series of number derived from the incorporation number assigned by the Companies Commission of Malaysia (SSM) for registration, reference and transaction purposes in the following: ~

1. The Inland Revenue Board (IRB)
2. Employees Provident Fund (EPF)
3. Human Resources Development Fund (HRDF)
4. Social Security Organization (SOCSO)
5. Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia)

MyCoID Gateway
“MyCoID Gateway enables automatic population of data for simultaneous registration with the relevant Government Agencies upon incorporation.” Malaysia Company ID.

Malaysia Company Identity
For MyCoID detailed information: http://www.ssm-mycoid.com.my

You may also register the MyID/MyCoID via PANTAS online or MyIPO service counter. For search and query for applications using MyID/MyCoID, it can be made via the Application Status Enquiry Online at https://pantas.myipo.gov.my/workflow/ENG/index.cfm

Downgrades, political unrest and disasters in Asia bring down share market indices.

Asian share markets buckled under the pressure of a combination of factors yesterday which included market downgrades, political unrest and natural disasters.

Investors across the region dumped their stocks after Japan’s debt rating outlook was downgraded to negative from stable by Moody’s Investors Service.

Sentiment was further dampened by the continued political unrest in the Middle East and North African regions and a major earthquake in Christchurch, New Zealand.

At the close, key equity markets like Japan’s Nikkei 225, Hong Kong’s Hang Seng and Singapore’s Straits Times were all down by an average of almost 2% each.

Investors wasted no time in turning to “safe havens” like the US dollar as well as gold and silver, both of which reached multi-month highs only recently but retreated slightly in Asia’s evening trade yesterday on profit-taking.

At home, the local benchmark FTSE Bursa Malaysia KLCI index was down 0.80% or 12.22 points to 1,513.63.

Wider market breadth was negative with 880 counters down, 112 up and 169 traded unchanged.

Airlines stocks where crude oil, trading at a two-year high is a huge cost component took a huge beating with AirAsia Bhd and Malaysia Airlines shedding 22 sen and 6 sen respectively to RM2.54 and RM2.02.

“I don’t advise bargain hunting in this kind of environment where the risk of the political turmoil spreading to other countries is still very real,” Pong Teng Siew, head of research at Jupiter Securities, said.

The political tensions with the aim of toppling governments began in Tunisia, spreading to other parts of North Africa and the Middle East regions and driving oil prices above US$90 per barrel yesterday the highest levels in two years on supply concerns.

Both regions are oil-producing regions with Libya, the latest to be dragged into the turmoil, having the largest reserves in Africa, pumping up to 1.6 million barrels a day of oil last month, equivalent to 8% of US consumption, according to Bloomberg.

“We have had high agricultural prices of late due to bad weather, which is putting pressure on inflation levels. Now we have this additional element of rising energy commodities these are bad for equity markets,” Pong said.

Japan’s economic and fiscal policies “may not prove strong enough to achieve the government’s deficit reduction target and contain the inexorable rise in debt,” Moody’s said in a statement yesterday on its downgrade of Japan’s debt rating outlook.

According to a Bloomberg report, Japan’s public debt is set to exceed twice the size of the economy this year and reach 210% of gross domestic product in 2012. It would probably swell to 997.7 trillion yen (US$12 trillion) in the year starting April 1, Japan’s Finance Ministry was quoted by Bloomberg as saying.

Japan was overtaken by China as the world’s second-largest economy last year.

In the currency markets yesterday, the New Zealand dollar slumped to its lowest level this year against the greenback opening at US$0.7641 and falling to US$0.7543 after the earthquake.

The ringgit was also lower against the US dollar yesterday. As at 5pm, it declined to 3.0480/0505 from Monday’s close of 3.0340/0370.

Meanwhile AP reported from New York Tuesday(Wednesday morning in Malaysia) that US stocks fell sharply and oil prices spiked to their highest level in two years Tuesday as unrest in Libya worsened.

Oil prices jumped 6.4 percent to $95.42 a barrel. The fight between protesters and forces loyal to the Libyan leader Moammar Gadhafi threatens oil production from the world’s 15th largest oil exporter, accounting for 2 percent of global daily output. Libya also sits atop the largest oil reserves in Africa.

The Dow Jones industrial average sank 178.46 points, or 1.4 percent, to close at 12,212.79. Bond prices rose as investors sought safety.

Libyan leader Moammar Gadhafi vowed to fight to his “last drop of blood” and roared at his supporters to take to the streets against protesters demanding his ouster.

The Standard & Poor’s 500 index fell 27.57, or 2 percent, to 1,315.44. It was the worst day for the S&P since Aug. 11.

The Nasdaq fell 77.53, or 2.7 percent, to 2,756.42.

Among traders, the main worry is that unrest will spread to other oil-rich countries in the Middle East and North Africa. Protests toppled longtime dictators in Libya’s neighbors Tunisia and Egypt in the past month, and protests are continuing in Yemen and Bahrain.

Jim Ritterbusch, an energy analyst, said a “fear premium” has added about $10 a barrel to oil prices in recent days. Prices could tumble once the region settles down, he said.

Oil producers rose with the prospect of a drop in oil supply. Chevron Corp. gained 1.6 percent, the largest gain among the 30 large companies that make up the Dow Jones industrial average. Exxon Mobil Corp. rose 1 percent.

Higher fuel costs hurt airline stocks. Delta Air Lines Inc., American Airlines parent AMR Corp., United Continental Holdings Inc. and US Airways Group Inc. all dropped by 5 percent or more.

Investors drove into the relative safety of Treasurys, pushing their prices higher and lowering their yields. The yield on the 10-year Treasury fell to 3.46 percent from 3.59 percent late Friday.

Brian Bethune, an economist at IHS Global Insight, said a $10 rise in the price of oil subtracts roughly 0.4 percentage point from economic growth. An increase to $150 or $160 a barrel could knock the economy into a recession, Bethune and other economists say.

Higher oil prices also pinch U.S. consumers by pushing up the price of gas. “This puts a damper on consumer optimism, which is really critical at this stage of the recovery,” said Alan Gayle, senior investment strategist for RidgeWorth Investments.

Wal-Mart Stores Inc. fell 3 percent after revenue at stores open at least a year fell for the seventh straight quarter. That raised worries about the company’s ability to turn around its U.S. business this year.

Barnes & Noble Inc. fell 14 percent after the bookseller said its net income fell 25 percent. The company also suspended its dividend and said it would not forecast its fourth-quarter or full-year earnings following last week’s bankruptcy filing by Borders Group.

Falling stocks outnumbered rising ones nine to one on the New York Stock Exchange. Volume was 1.3 billion shares.

10 Things You Need To Know Before The Opening Bell
Good Morning. Here’s what you need to know. Asian indices were down in overnight trading with the Shanghai Composite diving 2.60% . Major European indices are down and US futures indicate a negative open.

Markets slip on Asian cues
Markets opened on a soft note this morning, following cues from Asian indices.

USD 42 bn UN pension fund scouts for investment opportunities in India
By Devirupa Mitra, New Delhi, Feb 15 : In a boost for Indian stock markets, the United Nations is looking to ramp up the India portfolio of its USD 42 billion pension fund with more investments, especially in private projects in infrastructure and real estate.

$42 bn UN pension fund scouts for investment opportunities in India
New Delhi, Feb 15 (IANS) In a boost for Indian stock markets, the United Nations is looking to ramp up the India portfolio of its $42 billion pension fund with more investments, especially in private projects in infrastructure and real estate.

UN pension fund proposes higher investment in India
By Devirupa Mitra, New Delhi, Feb 15 : In what could give a big push to Indian stock markets, the United Nations and its affiliate agencies want to invest more from their USD 42-billion corpus of pension funds in this country, especially in infrastructure and realty.

Several changes have been made to the Malaysian Takeovers and Mergers Code, which now requires companies to adopt a higher level of disclosure and makes independent directors more than just rubber stamps for merger and acquisition act in Malaysia.

According to the Securities Commission (SC), key changes incorporated into the Malaysian Takeovers and Mergers Code 2010 benefit shareholders and include protection for investors of foreign companies and real estate investment trusts listed on Bursa Malaysia, shorter settlement periods and enhanced disclosures in offer documents and independent advice circulars.

The new regulations, which come into force today, replace the Malaysian Code on Takeovers and Mergers 1998.

However, the changes do not address the controversial issue of preventing the privatisation of companies via the asset and liability (A&L) route, which is part of the Companies Act.

According to bankers familiar with the regulations, the SC is looking at curtailing the takeover of companies via the A&L route through changes to listing requirements as it would be less cumbersome.

“Changes to the asset-disposal route can’t be done as we can’t touch on the Companies Act (CA),” said one banker.

The controversy surrounding the takeover or privatisation of companies via the A&L route lies in the fact that it requires only the approval of 50% of shareholders plus one share. Other takeover methods require at least 75% shareholder approval.

A few months ago, the SC had issued a consultative paper seeking the opinions of stakeholders on a proposal to raise the level of shareholder approval in privatisations or takeovers of companies via the A&L route, to bring them in line with the rules in other countries. In Hong Kong and New Zealand, for example, the approval of at least 75% of the shareholders of a target company is required.

“But the response we received was mixed. There are groups with totally opposing views so the implementation will not be so soon,” said one banker.

“The new changes reflect some of the measures required to enhance investor protection. The previous regulations are 12 years old,” he added.

Among the more notable changes to the Takeover Code are:
• The requirement to be more transparent in the announcement on potential takeover offers. Under the new rules, potential offerors or offerees are required to make an announcement on possible offers when there are unusual changes in the company’s share price. They cannot hide behind the excuse of being unaware of developments involving major shareholders. This applies particularly to independent directors who would be required to make themselves aware of developments. If the potential offeror or offeree denies a takeover, they cannot undertake such an exercise within a period of six months.
• If material changes occur after the dispatch of documents, such as circular to shareholders, the SC must be notified immediately. For instance, during a takeover or privatisation exercise, if the promoters are undertaking other negotiations pertaining to the asset that is to be privatised, they have to inform the SC. This is to ensure shareholders are well informed of developments. An exmaple of this is when Maxis was privatised in 2007, less than two months later the promoters entered into a deal with Saudi Telekom. Under the new rules the promoters must inform the SC if they are negotiations with external parties.
• The new rules allow a voluntary offer to take over a company to be carried out at a higher threshold as a condition. At the moment, in most cases, a voluntary takeover offer is normally conditional upon the offeror getting 50% of the shares. Now the condition can be increased to 90%. This effectively means that that promoters cannot use excuse of “uncertainty” as a reason to use the A&L route to take over companies, especially financial institutions.
• The conduct of all parties, namely offerors, advisers and the boards of offerees are codified. These parties, especially the independent directors of the board are required to give timely disclosure to shareholders and are prohibited from undertaking actions that could frustrate an offer. This effectively means that independent directors are required to ensure that any offer for the company should be put before shareholders to decide on.

Though many will welcome the new regulations as signs of a maturing market, merchant bankers are likely to heave a sigh of relief that the changes do not plug the loophole for the privatisation of companies via the A&L route.

“Many were of the opinion that the revisions would adversely affect takeovers via the A&L route and bankers were concerned it would slow down corporate deals,” says one banker.

However, others disagree. They cite Hong Kong as an example. When the rules there covering the A&L route were changed and the threshold was increased to 75%, it did not affect deal flows.

According to the proponents who favour changes to the rules to prevent the A&L route from being used to take over or privatise companies, over time the rule was well received in Hong Kong.

“It can’t just be amended and implemented immediately. Hong Kong took a year to implement it [the changes in its Companies Act] ,” says a banker.

Hong Kong made amendments to its Companies Act in 2008 under which parties seeking to buy assets of listed firms are required to secure the approval of at least 75% of shareholders of the target company and not more than 10% of shareholders oppose the deal.

Directors who would be required to make themselves aware of developments. If the potential offeror or offeree denies a takeover, they cannot undertake such an exercise within a period of six months.

• If material changes occur after the dispatch of documents, such as circular to shareholders, the SC must be notified immediately. For instance, during a takeover or privatisation exercise, if the promoters are undertaking other negotiations pertaining to the asset that is to be privatised, they have to inform the SC. This is to ensure shareholders are well informed of developments. An example of this was when Maxis was privatised in 2007, and less than two months later the promoters entered into a deal with Saudi Telekom. Under the new rules the promoters must inform the SC if they are negotiations with external parties.

• The new rules allow a voluntary offer to take over a company to be carried out at a higher threshold as a condition. At the moment, in most cases, a voluntary takeover offer is normally conditional upon the offeror getting 50% of the shares. Now the condition can be increased to 90%. This effectively means that promoters cannot use excuse of “uncertainty” as a reason to use the A&L route to take over companies, especially financial institutions.

• The conduct of all parties, namely offerors, advisers and the boards of offerees are codified. These parties, especially the independent directors of the board are required to give timely disclosure to shareholders and are prohibited from undertaking actions that could frustrate an offer. This effectively means that independent directors are required to ensure that any offer for the company should be put before shareholders to decide on.

Though many will welcome the new regulations as signs of a maturing market, merchant bankers are likely to heave a sigh of relief that the changes do not plug the loophole for the privatisation of companies via the A&L route.

“Many were of the opinion that the revisions would adversely affect takeovers via the A&L route and bankers were concerned it would slow down corporate deals,” said one banker.

Others disagree. They cite Hong Kong as an example. When the rules there covering the A&L route were changed and the threshold was increased to 75%, it did not affect deal flows. According to the proponents who favour changes to the rules to prevent the A&L route from being used to take over or privatise companies, over time the rule was well received in Hong Kong.

“It can’t just be amended and implemented immediately. Hong Kong took a year to implement it [the changes in its Companies Act] ,” said a banker.

Hong Kong made amendments to its Companies Act in 2008 under which parties seeking to buy assets of listed firms are required to secure the approval of at least 75% of shareholders of the target company and not more than 10% of shareholders oppose the deal.

* A mixed development project including affordable houses to be developed at a cost of RM10 billion in Sungai Buloh and is expected to be completed by 2025.

* Another landmark project “Warisan Merdeka” which includes a 100-storey tower, the tallest in Malaysia, at a cost of RM5 billion to be completed by 2015.

* Development of large-scale integrated Aquaculture Zones in Pitas, Sungai Telaga and Sungai Padas in Sabah as well as Batang Ai and Tanjung Manis in Sarawak with an allocation of RM252 million.

* Allocation of RM135 million for basic infrastructure to encourage farmers participation in high value agriculture activities including swiftlet nests.

* Extension of income tax deduction incentive for investors and income tax exemption for companies undertaking food production activities until 2015.

* RM85 million to provide infrastructure facilities to facilitate construction of hotels and resorts in remote areas with the potential to attract tourists.

* RM50 million to construct several shaded walkways in the KLCC-Bukit Bintang vicinity.

* Development of world’s first integrated eco-nature resort at a cost of RM3 billion by Nexus Karambunai in Sabah to commence next year.

* Abolishing of import duty on 300 goods preferred by tourists and locals, at 5 to 30 per cent, to promote Malaysia as a shopping heaven in Asia.

* RM119 million for the development of local content creation, hosting local content and unlocking new channels for content.

* Exemption of sales tax on all types of mobile phones.

* RM850 million for infrastructure support to accelerate corridor and regional development.

* RM411 million for research, development and commercialisation activity to be the platform for enhancing value-added activities across economic sectors.

* Establishment of a Special Innovation Unit (UNIK) under the Prime Minister’s Department with an allocation of RM71 million for next year to commercialise R&D findings by universities and research institutions.

* RM200 million for the purchase of creative products such as high quality, locally-produced films, dramas and documentaries.

* Rate of service tax to be increased from five to six per cent.

* Service tax to be imposed on paid television broadcasting services.

* Strengthening the revenue collection system by increasing enforcement and audit as well as coverage on all parties that should be paying taxes.

* Restructuring and strengthening of education and training with the sum of RM29.3 billion allocated for Education Ministry, RM10.2 billion (Higher Education Ministry) and RM627 million (Human Resource Ministry).

* Establishment of Talent Corporation under the Prime Minister’’s Office in early 2011 to develop an expert workforce database as well as collaborate closely with talent networks globally.

* For the Ministry of Education, a sum of RM6.4 billion is allocated for Development Expenditure to build and upgrade schools, hostels, facilities and equipment as well as uphold the status of the teaching profession.

* RM213 million is allocated to reward high performance schools as well as for the remuneration of Principals, Head Teachers and Excellent Teachers.

* The Government will increase pre-school enrolment rate to a targeted 72 per cent by end 2011 through additional 1,700 classes, strengthen the curriculum as well as appoint 800 pre-school graduate teachers.

* The Government also allocates RM111 million for PERMATA programme including the construction of the second phase of Sekolah PERMATA Pintar school complex, 32 PERMATA Children Centres (PAPN) and financing operations of 52 completed PAPNs.

* RM250 million allocated for Development Expenditure for religious schools, Chinese-type schools, Tamil national schools, missionary schools and Government-assisted schools nationwide.

* Recognising the importance of Islamic education, the Government will provide assistance per capita for primary and secondary rakyat religious schools with an allocation of RM95 million.

* To provide competent and quality teachers and instructors to better guide and educate students, the Government allocates RM576 million in the form of scholarships for those wishing to further their studies.

* RM213 million is allocated to enhance proficiency in Bahasa Malaysia, strengthen the English language as well as streamline the standard curriculum for primary schools.

* The Government will recruit 375 native-speaking teachers including from the United Kingdom and Australia to further enhance teaching of English.

* The number of PhD qualified academic staff will be increased to 75 per cent in research universities and to 60 per cent in other public institutions of higher learning with an allocation of RM20 million.

* Excise duty exemption be increased from 50 per cent to 100 per cent on national vehicles purchased by the disable.

* Existing tax relief of up to a maximum of RM5,000 be extended to cover other expenses such as day care centre, cost incurred to employ caretakers for parents and other daily needs such as diapers.

* Stamp duty exemption of 50 per cent be given on loan agreement instruments to finance first-time purchase of houses.

* Full import duty and 50 per cent excise duty exemption was granted to franchise holders of hybrid cars.

* Implementation of 1Malaysia Training Programme by Community Colleges, National Youth Training Institutes, Giat Mara and Industrial Training Institutes to commence in January 2011 with an allocation of RM500 million.

* The establishment of National Wage Consultation Council as the main platform for wage determination.

* The establishment of 1Malaysia Youth Fund with an allocation of RM20 million.

* Monthly allowance for KAFA teachers will be increased to RM800 compared with RM500 currently.

* Increase in monthly allowance for the Chairman of JKKK and JKKP, Tok Batin, Chairman of JKKK Orang Asli and Chairman of Kampung Baru to RM800 compared with RM450 currently.

* Increase in meeting attending allowance to all comittee members from RM30 to RM50.

* Special Financial Assistance amounting to RM500 to be provided to all civil servants from Grade 54 and below, including contract officers and retirees.

* The abolishment of the Competency Level Assessment or PTK to be replaced with a more suitable evaluation system by June 2011.

* Extension of services of Pegawai Khidmat Singkat for an additional period of one year from December 2010.

* Raising the amount of loan from RM10,000 to RM20,000 for additional works on low-cost houses for Support Group Two.

* Raising the maximum loan eligibility to RM450,000 compared with RM360,000 currently, effective January 1, 2011.

* Increasing the rate for Funeral Arrangement Assistance to RM3,000.

* Allowing flexibility to self-determine fully-paid maternity leave not exceeding 90 days from the current 60 days subject to a total of 300 days of maternity leave throughout the tenure of service.

* Introduction of “Skim Rumah Pertamaku” which will provide a guarantee on down payment of 10 per cent for houses below RM220,000 for first-time house buyers.

* To assist estate workers to own low-cost houses through a scheme managed by BSN.

* Construction and repair of 12,000 houses nationwide particularly in Sabah and Sarawak with an allocation of RM300 million.

* Establishment of a “1Malaysia Smart Consumer” portal.

* Introduction of the Distribution of Essential Goods programme to standardise prices across areas.

* Introduction of the Retail Shop Transformation Programme, Automotive Workshop and Community Market projects.

* The launch of a Private Pension Fund in 2011.

* The launch of Bumiputera Property Trust Foundation with the size of RM1 billion and syariah-compliant.

* To assist children particularly those from the low-income group to excel academically, the 1MDB will provide multi-vitamins for primary school students.

* Rebate of electricity bill payment for monthly consumption of below RM20 will be continued.

* The toll rates in four highways owned by PLUS Expressway Berhad will not be raised for the next five years effective immediately.

* A review of the current minimum bankruptcy limit of RM30,000.

* The application for Permanent Resident status may be submitted after five years of residence.

* Providing four buses for Mobile Clinic.

* Formulating a new development model for Orang Asli.

* JHEOA will be restructured and strengthened as Jabatan Kemajuan Orang Asli.

Read more: Budget 2011 highlights http://www.nst.com.my/nst/articles/Budget2011highlights/Article/#ixzz12h827Tel

Syrian Embassy in Malaysia
Embassy of Syria
Address: Suite 23.03, 23rd Floor,
Menara Tan & Tan, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia.
Website: http://www.syrianembassy.com.my
Tel: (603) – 2163 4110 / 12
Fax: (603) – 2163 4199

Embassy of the Syrian Arab Republic in Kuala Lumpur Malaysia

Malaysia Syria Embassy Location Map

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With the implementation of Malaysia Company Tax Audit Self Assessment System (“SAS”) by the Inland Revenue Board (“IRB”), tax audits become one of IRB’s main activities. SAS for companies were implemented in 2001, whereas for individuals and businesses, in 2004.

SAS is a system where by taxpayers (both individuals and companies) are required to compute their own taxes and make full payments to the IRB. Further, taxpayers are required to estimate tax payments for current financial year and make installment payments for the estimated amount.

What IRB does is to ensure the taxes reported and paid by taxpayers are correctly prepared; so to conduct tax audits. IRB’s selection process for tax audits is by way of reviewing assessment submissions for irregularities in financial ratios and supply of information by third party, among the others. In 2008, the IRB has conducted nearly 15,000 field audits and more than 1 million cases of desk audits.

Desk Audit
This is where IRB will send letters to selected taxpayers, requesting for documents to support the assessment submitted. What IRB does is to review the documents upon receiving from the taxpayers, and find out if the assessments are correctly prepared.

Within 2 to 3 weeks after the audit, IRB will notify the taxpayer whether additional tax payments need to be made. If IRB’s review shows overpaid taxes, a refund will be made to the taxpayer. Desk audits are normally applicable to individual and small businesses.

Field Audit
Field audit is where IRB officers will audit the taxpayers’ records at their premises. IRB will serve a 14 day notice to the taxpayers to prepare the necessary documents and records. There will be at least 2 officers to conduct each audit, and their names will be given in the notice.

Sometimes, IRB may conduct field audits on tax assessments up to 3 years back. Should there be discrepancy between the records and the assessment submitted, tax assessment will be amended accordingly and the taxpayer will be notified within 3 months after the audit. Field audits are for businesses and companies.

Disagreement with IRB Findings
If taxpayers disagree with the findings, they can first contact IRB to raise their disagreement. IRB will reassess the documents, records and computations of their initial findings. If after the reassessment and the IRB maintains their findings, the taxpayer has the right to bring the dispute to the Special Commissioners of Income Tax.

There is no way to avoid tax audits but all taxpayers can ensure that tax audit is performed smoothly by maintaining proper records and documentation, especially for businesses and companies. To IRB, records are evidence of transactions. Tax assessments are compilation of these evidences. Therefore, face values of records that are available to the IRB officers are taken as final proof. Any discrepancies between the records and the tax assessment submitted will be reflected with adjustment to the tax amount.

According to Section 82 of the Income Tax Act, 1967, taxpayers are required to keep accounting records for at least 7 years. In fact, it is prudent not to dispose of any old records, even after 7 years. There are many instances where IRB will audit tax assessments that are more than 7 years old – If they suspect those assessments were incorrect. It would be at the taxpayer’s disadvantage if they have no records to substantiate their case.

Malaysia Richest Man 2010
Top list biodata listing profile of richest people in Malaysia.

Malaysian Richest Man Ranking List: ~
1. Robert Kuok Hock Nien
2. Ananda Krishnan
3. Lee Shin Cheng
4. Lee Kim Hua
5. Quek Leng Chan
6. Teh Hong Piow
7. Yeoh Tiong Lay
8. Syed Mokhtar AlBukhary
9. Vincent Tan
10. Tiong Hiew King
11. Azman Hashim
12. Lee Oi Hian & Lee Hau Hian
13. Yaw Teck Seng & Yaw Chee Ming
14. Lim Wee Chai
15. William H. J. Cheng
16. Goh Peng Ooi
17. Lim Kok Thay
18. Jeffrey Cheah
19. Anthony Fernandes
20. G. Gnanalingam
21. Kamarudin Meranun
22. Chan Fong Ann
23. Shahril & Shahriman Shamsuddin
24. A.K. Nathan
25. Chong Chook Yew
26. Mokhzani Mahathir
27. Ahmayuddin bin Ahmad
28. Lau Cho Kun
29. Chen Lip Keong
30. Lee Swee Eng
31. Liew Kee Sin
32. Nazir Razak
33. Eleena Azlan Shah
34. Ong Leong Huat
35. Rozali Ismail
36. Kua Sian Kooi
37. Lin Yun Ling
38. David Law Tien Seng
39. Abdul Hamed Sepawi
40. Syed Mohd Yusof Tun Syed Nasir

Rights Issue is an offering of common stock to existing shareholders who hold subscription rights or pre-emptive rights that entitle them to buy newly issued shares at a discount from the market price at which they will be available to the public later.

A rights issue is a way for a quoted company to raise money. Rather than take on debt, a quoted company can instead ask its shareholders to dig into their pockets to provide extra capital.

The price of the newly issued shares is fixed, always set below the market price. Just as its name implies, this problem to shareholders shall have the right to purchase additional shares, but not the obligation. The right to sell to those who wish to use this proposal, at so every correct value. All or part of the shareholders may buy at their all right.