A waiver good for some property owners. Petikan TheStar Sunday November 1, 2009

THE reintroduction of the Real Property Gains Tax (RPGT) in Budget 2010 has generated much interest and concern.

The acquisition and disposal of property is subjected to a levy by the Government in the form of stamp duty or RPGT


There are many instances when the disposals are made not with a view to profits. People acquire and hold property as a store of wealth and they dispose it when they are in need of funds.

Certain individuals should be exempted from the RGPT. Senior citizens aged 55 years and above who dispose of their properties should be exempted. This category of people needs the funds to meet exorbitant medical bills and for their continued healthcare.

Those who are forced to sell property to meet their debts should be exempted; and disposals as a result of bank foreclosures should also be exempted.

There are those who have to sell their properties to finance their children’s education. The incidence of a levy on property transactions should be a one-off payment at the time of acquisition. Therefore, an increase of a quarter to half a percentage point of the stamp duty could be introduced.

I believe this increase will be adequate to generate revenue equivalent to that derived from the RPGT collection.

Those who can afford to buy property or buy new houses should be able to pay the stamp duty. Stamp duty is easy to compute as it is based on the transacted price. On the other hand, the chargeable gain with the acquisition and disposal price is sometimes difficult to ascertain since the supporting invoices, bills and other documents go missing after so many years.

Other benefits include:

> There is no need to complete any forms and hence saves time.

> The collection is prompt as there would be no registration of the title of the property without first receiving the stamp duty.

> The seller receives his proceeds without having to wait for the tax clearance.

PETER C,
Shah Alam.

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Looking for tax clarity Petikan TheStar Saturday October 31, 2009

OPTIMISTICALLY CAUTIOUS
By ERROL OH


BUDGET speeches are not the kind of reading material that you can just breeze through. They talk about important matters that affect many people and businesses.

The business community and plenty of others pore over these documents to better understand the thinking behind the Government’s fiscal moves. Budget 2010 was no different.


Soon after Prime Minister Datuk Seri Najib Tun Razak began reading his speech in Dewan Rakyat on Oct 23, thousands of copies of the text were distributed and read around the country. As usual, there was much to digest.

This time around, though, there was some confusion over a change in real property gains tax (RPGT).

This was what Najib announced in his speech: “The Government needs to ensure that the Malaysian tax system is equitable and able to generate revenue for development purposes. In line with this, the Government proposes that a tax of 5% be imposed on gains from the disposal of real property from Jan 1, 2010.”

Appendix 15 of the speech provided more details. It states that gains from the disposal of real property are subject to tax under the RPGT Act 1976 to curb speculative activities in the property market.

The tax rates are progressive from 0% to 30%, depending on the holding period of the property. No tax is imposed on the disposal of a property that takes place more than five years after its acquisition.

To broaden the tax base, it is proposed that tax at “a fixed rate of 5%” be imposed on gains from the disposal of real property.

Based on Najib’s speech and the appendix, just about everybody has understood the same thing – that the RPGT net has been widened to capture practically every sale of property (no matter how long ago you bought it), and that the gains from the disposals will be subject to a 5% tax.

This alone has made quite a number of people unhappy (see Angie Ng’s The Real Estate column on page 24), but what has muddied things was that it was not made immediately clear that the Government was putting through this change in two steps.

First, via the Finance Bill, it has proposed to raise the minimum RPGT rate (for property held for more than five years) from 0% to 5%. So far so good. That’s in keeping with what’s stated in the speech and Appendix 15. However, the higher rates (30%, 20% and 15% for disposals within two years, in the third year and in the fourth year after the acquisition) are kept intact. Several of those who had compared the Budget speech and the Finance Bill quickly spotted what they saw as a discrepancy.

If the higher rates are still maintained in the Act, doesn’t it contradict the Budget proposal of imposing RPGT at “a fixed rate of 5%”? It’s a fair question to ask because at that point, few people knew about the Government’s second step in changing the RPGT regime.

That only came out on Oct 25, when Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah issued a statement to confirm that the RPGT rate would be fixed at 5%, irrespective of the holding period of the property.

He said the 5% rate would be implemented through the Real Property Gains Tax (Exemption) Order 2009, a ministerial order that effects a rule change without requiring Parliamentary approval.

So that eliminates the Budget day confusion. However, the use of the order leads to a few interesting points to discuss.

This is not the first time that the Government has issued a ministerial order relating to RPGT. In 2003, it waived RPGT for a year to boost the property sector and to encourage corporate restructuring.

At the opening of the Invest Malaysia 2007, then Prime Minister Tun Abdullah Ahmad Badawi announced that “the Government has decided not to impose RPGT throughout the country commencing April 1”. That will stand until January next year, when the Budget 2010 proposal kicks in.

Some people misconstrued the 2007 move as a scrapping of the RPGT Act. We all certainly know now that this was not the case.

Such a ministerial order usually has a finite life. It gives the Government the flexibility of speedily switching tax strategy when circumstances change. If the Budget 2010 aim was to restructure the RPGT rates for the long haul so that there would only be the 5% rate, this could have been done by amending the RPGT Act only.

Instead, the Government retains the option of being able to charge higher RPGT rates to discourage people from buying property and selling within a year or two in a hot market to make a quick buck. That’s just planning ahead.

However, it would have been good if this aspect was communicated as well in the Budget. Benjamin Franklin wrote that nothing in this world can be said to be certain, except death and taxes. He may be right, but certainty is not necessarily the same as clarity and transparency.

l Although he doesn’t quite share the frustration and resentment that must have been stewing inside George Harrison when writing The Beatles’ Taxman, deputy business editor Errol Oh understands well the sentiments.

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Signs of green shoots. Petikan TheStar Saturday October 31, 2009

By ANGIE NG


THE housing property market which also succumbed to the dampening impact of the global financial crisis may be showing some “green shoots” of recovery, especially in the medium-range landed housing sector.



However, the high-end condominium market around the Kuala Lumpur City Centre vicinity is still fragile.

Since the middle of this year, the take-up rate for landed housing units has improved and developers are seeing a return of buying interest for good projects in well sought after locations. Even the high-rise residential market is showing some glimmer of hope.

The Malaysian Institute of Economic Research’s Residential Property Index (MIER RPI) hit 91.5 points in the second quarter of this year, which is a strong rebound from the all-time low of 69.3 points in the fourth quarter of 2008.


Tan Sri Liew Kee Sin says developers are still careful with planning their launches.
As a sign of their improved confidence, more developers are lining up new greenfield projects for launch from the later part of this year.

This is a much improved situation from late last year when things practically came to a halt and the sale registers at developers’ offices stopped ringing.

Just when developers are about to look forward to brighter days ahead, the proposed reimposition of the real property gains tax (RPGT), albeit at a flat 5% rate irrespective of holding period and category of owners, is seen as a dampener of the “overall feel good” sentiment.

Although some are not overly concern that the RPGT will slow down sales substantially, especially among first time buyers and owner occupiers, some say it will impact the investor market.

Overall, with the prevailing low interest rates and improving economy, the environment is still relatively positive.

IJM Land Bhd managing director Datuk Soam Heng Choon says with the current benign interest rates and the pent up demand due to lack of new launches in the last nine months, the sentiment should remain positive.

“Most of our projected launches are on track and we will be putting more projects into the market. By our financial year ending March 2010, we would have launched about RM1.3bil worth of products nationwide,” Soam adds.

Among IJM Land’s latest launches are the Nusa Duta project in Johor Baru in July and The Light Waterfront Penang in August. A new commercial project in Melaka will be launched next month.

On challenges ahead, he says land prices are still on the rise and the cost of doing business remains high.

“Industry players should take the lull period to improve their product delivery and refocus on quality products to lift the industry’s image in the years ahead,” Soam points out.

According to SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin, the country’s economy is showing strong signs of recovery. Coupled with prevailing low interest rates and ample liquidity, the outlook looks more promising.


Tan Sri Leong Hoy Kum ... ‘The market is gaining momentum for an up cycle in the second half of 2010.’
Although sales is picking up, he says developers are still careful with planning their launches and only time will tell if the recovery is sustainable.

Liew adds that product innovation which caters to the people’s changing lifestyle and needs will continue to fuel demand, adding that the company will continue with its launches in its townships in Johor, the Klang Valley and Penang.

Mah Sing Group Bhd group chief executive Tan Sri Leong Hoy Kum says: “The market is gaining momentum for an up cycle in the second half of 2010.

This would be true for mid- to high-end landed residential projects as well as commercial projects in prime locations.”

The company is lining up some new project launches next year, including Garden Residence in Cyberjaya by the first quarter of 2010. The project has received more than 600 registrants so far for the superlink homes and semi detached houses.

Mah Sing is also planning to launch the iParc project in Bukit Jelutong comprising semi-detached factories with flexible layouts for corporate warehousing.

Leong says as property demand in the country is largely driven by fundamentals, there has been no price bubble so far and hence, any downside for property prices is limited.

“We have not seen any fire sales, and good properties that are developed by reputable developers in prime locations still see strong take up.”


An artist’s impression of The Light Waterfront Penang’s residential precinct. More developers are lining up new greenfield projects for launch from the later part of this year

As of the middle of July, Mah Sing achieved RM543mil in sales, exceeding the full year target of RM453mil.

Its unbilled sales stood at RM812mil, approximately 1.6 times the revenue recognised from the property division last year.

Hunza Properties Bhd executive chairman Datuk Khor Teng Tong says prevailing low interest rates, a growing population, relatively low unemployment, and no significant overbuilding are strong factors to fuel growth in the market.

Industry players should also be well versed with the industry cycles, trends and changing needs of the society.

Concurring with him, Gamuda Land Sdn Bhd managing director Chow Chee Wah says innovative master plans with strong concept, good systematic implementation and execution will result in quality delivery system.

“Projects by developers with strong track record, good capital appreciation and rental yields will continue to do well even during difficult economic times,” he says.

Chow says to ensure more sustainable growth, it is necessary to maintain the current financing rates. “To provide a further lift to the property market, it is important to liberalise the bumiputra quota issue and state consent on purchase of leasehold property.

“Streamlining the process to cut down red tapes for speedier approvals in the two areas will be great help to the property industry,” he says.

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Budget for 1Malaysia Petikan NewStraisTimes 24 Okt 2009

By Shahriman Johari

KUALA LUMPUR: The 2010 Budget has sent a message that is loud and clear for all: Malaysia is serious about transforming its economy for the second time since independence and this will require hard work and sacrifices.

“We now have to shift to a new economic model based on innovation, creativity and high value-added activities,” Prime Minister Datuk Seri Najib Razak, who is also finance minister, said in his first Budget speech in Parliament yesterday.

The government plans to spend about RM192 billion, about a tenth less than 2009, but it will still cut the deficit to 5.6 per cent of the economy, reflecting its responsibility of keeping the country’s finances in good shape.


Ministry of Finance and the possible introduction of a goods and services tax (GST) in the future.


The global recession has exposed Malaysia as being too reliant on exports and weaker demand for our products means the economy is likely to shrink by three per cent this year.

But the economy is slated to rebound and grow by two to three per cent next year as the global economy recovers. The 2010 Budget lays the foundation for what Malaysia needs to grow its economy further.

There are measures to improve niche areas where the country has an edge over global rivals like tourism and Islamic finance and a plan to fix our schools and produce skilled workers of the future.

One of them involves rewarding headmasters with money and other incentives if they meet their performance targets.

Another highlight is the promise to have a Whistleblower Act to curb corruption where informers of misdeeds will be protected from prosecution.

The government also continued to show that it cares for all with a retirement scheme for the self employed, called the 1Malaysia Retirement Scheme.

At present, the Employees Provident Fund manages old-age contributions from workers in the private sector, leaving people like taxi drivers, hawkers and fishermen to fend for themselves.

But under the new scheme, the government will also contribute a maximum of RM60 a year, on top of the dividends as the fund will be managed by the EPF.

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Manfaat rakyat secara holistik Petikan Berita Harian 24 Okt 2009

Bajet fokus pertingkat pendapatan boleh guna, taraf hidup penduduk

KUALA LUMPUR: Bajet 2010 yang dibentangkan Datuk Seri Najib Razak semalam, memanfaatkan setiap masyarakat dengan tumpuan kepada meningkatkan pendapatan boleh guna dan mutu hidup rakyat serta menggerakkan semula sektor swasta sebagai penjana pertumbuhan ekonomi.

Bajet yang menjadi asas pembentukan model ekonomi baru negara dan Rancangan Malaysia Kesepuluh (RMK-10) itu, turut menumpu kepada membangunkan modal insan berkemahiran tinggi serta meningkatkan kecekapan perkhidmatan awam.

Bertemakan '1Malaysia, Kemakmuran Bersama', bajet dengan peruntukan RM191.5 bilion itu berteraskan tiga strategi, iaitu memacu negara ke arah ekonomi berpendapatan tinggi; memastikan pembangunan holistik dan mapan serta mengutamakan kesejahteraan rakyat.

Walaupun 11.2 peratus lebih kecil berbanding RM215.7 bilion dalam Bajet 2009, langkah dan insentif diumumkan Perdana Menteri dalam bajet sulungnya itu adalah menyeluruh dan memastikan setiap ringgit dibelanjakan memberi impak paling maksimum.

Bagi mensejahterakan rakyat, tumpuan adalah kepada meningkatkan pendapatan dan taraf hidup rakyat serta membasmi kemiskinan tegar; meningkatkan kemudahan perumahan, prasarana, mutu perkhidmatan pengangkutan awam serta keselamatan rakyat.

Bagi meningkatkan pendapatan dan taraf hidup rakyat, insentif yang disediakan meliputi semua golongan dengan tumpuan menghapuskan kemiskinan tegar.

Najib antara lain mengumumkan penyediaan latihan kemahiran dan program penjanaan pendapatan untuk 50,000 isi rumah miskin tegar, di samping pelbagai program membantu golongan miskin di luar bandar, termasuk peruntukan RM180 juta bagi Program Pembasmian Kemiskinan dan Skim Pembangunan Kesejahteraan Rakyat (SPKR) dan program pembinaan kedai desa dengan peruntukan awal RM30 juta untuk memberi peluang penduduk luar bandar berniaga.

Sebanyak RM48 juta pula disediakan bagi program pembasmian kemiskinan bandar, di samping meluaskan tanggungjawab Kementerian Wilayah Persekutuan yang ditukar nama kepada Kementerian Wilayah Persekutuan dan Kesejahteraan Bandar, bagi meliputi membasmi kemiskinan bandar seluruh negara.

Bagi golongan berpendapatan sederhana, Najib antara lain mengumumkan penurunan kadar maksimum cukai pendapatan individu kepada 26 peratus daripada 27 peratus serta menaikkan pelepasan diri kepada RM9,000 daripada RM8,000.

Beliau turut mengumumkan penerbitan Sukuk 1Malaysia dengan saiz RM3 bilion bagi memberi peluang rakyat berusia 21 tahun ke atas meraih pendapatan pelaburan berdaya saing, serta menubuhkan Skim Simpanan Persaraan 1Malaysia untuk simpanan persaraan golongan bekerja sendiri.

Najib juga mengumumkan bayaran khas RM500 yang sebelum ini diberikan kepada kumpulan sokongan, dipanjangkan kepada kakitangan gred 41 hingga 54 serta pesara wajib.

Ke arah mencapai pembangunan holistik dan mapan, beliau menggariskan langkah dan insentif yang berteraskan usaha meningkatkan modal insan berkemahiran tinggi; meluaskan akses kepada pendidikan tinggi; menjaga kebajikan pelajar; menggilap kemahiran tenaga kerja dan memperkasa institusi pengajian tinggi.

Teras lain ialah memantapkan sistem perbankan dan kewangan; mencergaskan pasaran saham, memajukan lagi sistem kewangan Islam; memerangi rasuah serta meningkatkan kecekapan pengurusan kerajaan.

Bagi memacu negara ke arah ekonomi berpendapatan tinggi, langkah dan insentif yang disediakan adalah berteraskan usaha meningkatkan pelaburan swasta; mempergiatkan penyelidikan, pembangunan dan pengkomersialan serta memanfaatkan bidang kekuatan negara.

Ia juga ditumpukan kepada memajukan sektor pertanian; menggalakkan industri pembinaan; memperkasa perusahaan kecil dan sederhana; membangunkan teknologi hijau dan menggalakkan industri kreatif.

Najib turut mengumumkan kerajaan akan melaksanakan satu sistem pengurusan subsidi minyak, awal tahun depan yang mesra rakyat mengguna pakai MyKad dan infrastruktur sedia ada bagi memastikan hanya golongan memerlukan menikmatinya.

Perdana Menteri berkata, daripada peruntukan Bajet 2010 itu, RM138.3 bilion adalah untuk perbelanjaan mengurus dan RM53.2 bilion bagi pembangunan.

Katanya, bagi pembangunan, RM25.4 bilion ringgit adalah untuk infrastruktur, perindustrian, pertanian dan pembangunan luar bandar; RM20.3 bilion bagi pendidikan dan latihan, kesihatan, kebajikan, perumahan serta pembangunan masyarakat; RM3.7 bilion bagi keselamatan; RM1.8 bilion bagi pentadbiran am dan RM2 bilion untuk simpanan luar jangka.

Najib berkata, hasil Kerajaan Persekutuan bagi 2010 dianggarkan merosot 8.4 peratus kepada RM148.4 bilion berbanding RM162.1 bilion pada 2009.

"Dengan mengambil kira anggaran hasil dan perbelanjaan itu, defisit bagi 2010 dijangka menurun kepada 5.6 peratus daripada Keluaran Dalam Negara Kasar (KDMK), daripada 7.4 peratus pada 2009.

"Ini mencerminkan dasar perbelanjaan kerajaan lebih berhemat dan mengutamakan 'nilai untuk wang'," tegasnya.

Beliau turut mengumumkan kajian semula unjuran prestasi ekonomi negara tahun ini kepada hanya penyusutan tiga peratus dan pertumbuhan antara dua hingga tiga peratus tahun depan.

Inti pati Bajet 2010

* Ekonomi Malaysia dijangka berkembang 2-3 peratus pada 2010

* Perlombongan dijangka meningkat 1.1 peratus, pembuatan 1.7 peratus, pertanian 2.5 peratus, pembinaan 3.2 peratus dan perkhidmatan 3.6 peratus.

* penggunaan swasta berkembang 2.9 peratus manakala pelaburan swasta 3.4 peratus

* pendapatan per kapita meningkat 2.5 peratus kepada RM24,661

* TNB akan membelanjakan RM5 bilion untuk melaksanakan penjanaan, penghantaran dan pengagihan elektrik pada 2010

* Usaha sama awam-swasta akan meliputi kompleks imigresen, kastam dan kuarantin bersepadu di Bukit Kayu Hitam, pembinaan enam kampus UiTM dan pusat Matrade.

* 1Malaysia Development Bhd (1MDB) akan mewujudkan dana tanggungjawab sosial korporat berjumlah RM100 juta sebagai permulaan untuk membiayai aktiviti msyarakat.

* Kerajaan akan memperuntukkan RM899 juta untuk meningkatkan industri pelancongan.

* Kerajaan akan meningkatkan insentif cukai kepada penyedia prkhidmatan penjagaan kesihatan yang menawarkan perkhidmatan kepada pelancong kesihatan rakyat asing dengan pengecualian cukai pendapatan ditingkatkan daripada 50 peratus nilai peningkatan pendapatan eksport kepada 100 peratus.

* Pembayar cukai pendapatan individu diberikan pengecualian cukai ke atas langganan jalur lebar sehingga RM500 setahun mulai 2010 hingga 2012.

* Penjawat awam dibenar membuat pinjaman untuk membeli komputer setiap tiga tahun sehingga maksimum RM5,000 berbanding sekali setiap lima tahun.

* Merangka Akta Halal dengan usaha sama Majlis Agama Islam negeri-negeri.

* Memperbadankan Perbadanan Pembangunan Industri Halal (HDC) sebagai agensi di bawah Miti.

* Menyegerakan Pensijilan Halal oleh Jakim menerusi usaha sama dengan institusi antarabanga bagi memperoleh pensijilan standard seperti HACCP dan GMP.

* Menyediakan RM24 juta untuk membangunkan produk sistem antipenyeludupan produk Halal di tiga pintu masuk utama dan tiga pelabuhan utama.

* Memperuntukkan RM137 juta untuk meningkatkan dan memperbaiki infrastruktur saliran dan perparitan di jelapang padi membabitkan 180,000 petani.

* Memperuntukkan RM70 juta untuk melaksanakan Projek Empangan Paya Peda di Terengganu bagi meningkatkan keupayaan bekalan air untuk Skim Pengairan Padi di Besut.

* Memperuntukkan RM82 juta untuk memodenkan industri akuakultur dan pelaksaan skim latihan keusahawanan bagi ternakan akuakultur, dengan tumpuan terhadap pengeluaran benih ikan dan ikan hiasan.

* Peruntukan RM149 juta untuk untuk bangunkan industri perladangan makanan seperti makanan, sayur-sayuran, perladangan organik, herba, rumpai laut dan sarang burung layang-layang.

* Peruntukan RM58 juta untuk bangunkan infrastruktur asas ladang ternakan dan mewujudkan rangkaian bekalan untuk pengeluaran daging dan kambing.

* Konsortium Felda, Felcra dan Risda akan diwujudkan menjelang akhir tahun 2009, dengan modal berbayar RM300 juta dengan setiap agensi menyumbang RM100 juta.

* Kerajaan menyediakan subsidi, insentif dan bantuan berjumlah RM2 bilion untuk petani dan nelayan untuk menjaga kepentingan mereka.

* Peruntukan RM9 bilion untuk biayai projek infrastruktur, dengan RM4.7 bilion untuk projek jalan dan jambatan, RM2.6 bilion untuk bekalan air dan perkhidmatan pembentungan, RM899 juta untuk kemudahan rel, RM820 juta untuk perkhidmatan pelabuhan dan laut serta RM276 juta untuk projek lapangan terbang.

* Menyepadukan 79 dana PKS kepada 33 untuk memudahkan akses kepada pembiayaan PKS. Akan diselaraskan oleh SME Corp.

* Memperuntuk RM350 juta kepada SME Corp, dengan RM200 juta untuk pinjaman mudah PKS, RM100 juta peningkatan keupayaan dan bakinya untuk penjenaman dan promosi.

* Institusi kewangan meluluskan pembiayaan makro pada purata enam hari dan penyerahan dalam tempoh empat hari.

* Memperuntuk RM538 juta untuk pelaksanaan pelbagai program PKS dengan RM281 juta kepada perbadanan kemajuan ekonomi negeri, RM200 juta untuk Tekun dan RM57 juta untuk membeli premis perniagaan, infrastruktur dan sebagainya.

* Peruntukan RM149 juta untuk untuk bangunkan industri perladangan makanan seperti makanan, sayur-sayuran, perladangan organik, herba, rumpai laut dan sarang burung layang-layang.

* Peruntukan RM58 juta untuk bangunkan infrastruktur asas ladang ternakan dan mewujudkan rangkaian bekalan untuk pengeluaran daging dan kambing.

* Konsortium Felda, Felcra dan Risda akan diwujudkan menjelang akhir tahun 2009, dengan modal berbayar RM300 juta dengan setiap agensi menyumbang RM100 juta.

* Kerajaan menyediakan subsidi, insentif dan bantuan berjumlah RM2 bilion untuk petani dan nelayan untuk menjaga kepentingan mereka.

* Peruntukan RM9 bilion untuk biayai projek infrastruktur, dengan RM4.7 bilion untuk projek jalan dan jambatan, RM2.6 bilion untuk bekalan air dan perkhidmatan pembentungan, RM899 juta untuk kemudahan rel, RM820 juta untuk perkhidmatan pelabuhan dan laut serta RM276 juta untuk projek lapangan terbang.

* Menyepadukan 79 dana PKS kepada 33 untuk memudahkan akses kepada pembiayaan PKS. Akan diselaraskan oleh SME Corp.

* Memperuntuk RM350 juta kepada SME Corp dengan RM200 juta untuk pinjaman mudah PKS, RM100 juta peningkatan keupayaan dan bankinya untuk penjenaman dan promosi.

* Institusi kewangan meluluskan pembiayaan makro pada purata enam hari dan penyerahan dalam tempoh empat hari.

* Memperuntuk RM538 juta untuk pelaksanaan pelbagai program PKS dengan RM281 juta kepada perbadanan kemajuan ekonomi negeri, RM200 juta untuk TEKUN dan RM57 juta untuk membeli premis perniagaan, infrastruktur dan sebagainya.

* Memperkenal insurans asas dan skim takaful untuk perlindungan insurans motor pada pertengahan 2010.

* Memperluas liputan takaful dan insurans mikro kepada peniaga kecil, dengan manfaat perlindungan daripada RM10,000 kepada RM20,000, pada premium serendah RM20 sebulan.

* Pasaran saham akan diliberalisasikan lagi untuk meningkatkan kecekapan.

* Meliberalisasi aturan perkongsian komisyen antara broker saham dan remisier dengan membenarkan perkongsian pembrokeran fleksibel pada kadar minimum 40 peratus dan meliberalisasikan sepenuhnya perkongsian komisten berkuat kuasa 1 Januari, 2011.

* Membenarkan penyertaan 100 peratus ekuiti asing dalam syarikat perancangan kewangan dan kewangan korporat.

* Semua syarikat senaraian awam akan menawarkan e-Dividen dan syarikat pemerokeran saham menyediakan opsyen e-pembayaran.

* Insentif cukai sedia ada untuk perkhidmatan kewangan, terutama kewangan Islam, dilanjutkan hingga 2015.

* Pengecualian duti setem 20 peratus ke atas instrumen pembangunan kewangan Islam.

* Pengecualian cukai ke aras keuntungan bank daripada operasi luar negara.

* Potongan berganda perbelanjaan yang ditanggung untuk mempromosikan Malaysia sebagai pusat kewangan antarabangsa.

* Potongan ke atas perbelanjaan yang ditanggung bagi penubuhan syarikat-syarikat pembrokeran Islam.

* Potongan ke atas perbelanjaan yang ditanggung bagi penerbitan sekuriti.

* Kerajaan akan menggalakkan semua institusi perbankan dan kewangan yang mematuhi syariah seperti Bank Muamalat dan Bank Islam untuk menawarkan skim Ar-Rahnu.

* Kerajaan akan memastikan koridor pembangunan serantau dimajukan mengikut jadual. Setakat ini 126 daripada 195 projek perancangan di pelbagai peringkat pelaksanaan. Pelaburan yang dirancang berjumlah RM221 bilion sudah mengatasi sasaran perbelanjaan Rancangan Malaysia Kesembilan sebanyak RM145 bilion.

* Kerajaan akan memperuntukkan RM3.5 bilion untuk kemudahan asas dan infrastruktur serta program latihan dan projek sosio ekonomi untuk menyokong pelaksaan projek sektor swasta.

* Kerajaan kini dalam peringkat awal menyiapkan kajian pelaksanaan Cukai Perkhidmatan dan Barangan (GST). Kadar itu akan dikurangan berbanding cukai perkhidmatan dan jualan semasa.

* Cukai pendapatan bagi 2010 berdasarkan pendapatan yang diperoleh mulai 2009 akan dibenar dibayar secara ansuran dalam lima tahun.

* Cukai lima peratus akan dikenakan ke atas keuntungan daripada pelupusan hartanah mulai 1 Jan, 2010.

* Cukai perkhidmatan RM50 dikenakan ke atas setiap kad kredit utama dan kad caj serta RM25 setahun bagi setiap kad tambahan mulai 1 Januari, 2010.

* RM100,000 dikenakan untuk setiap AP untuk pemegang kad AP terbuka berkuatkuasa 1 Januari, 2010. Sebahagian daripada kutipan akan disalurkan kepada dana pembangunan Bumiputera dalam sektor automatif.

* Akan memperkenal skim insurans asas dan takaful untuk perlindungan insurans motor pada pertengahan 2010.

* Akan memperluas liputan insurans mikro dan takaful untuk peniagaan kecil mendapat manfaat daripada perlindungan RM10,000 hingga RM20,000 dengan premium serendah RM20 sebulan.

* Pasaran saham diliberalisasikan untuk kecekapan.

* Membenarkan penyertaan ekuiti asing 100 peratus dalam kewangan korporat dan perancangan kewangan.

* Semua syarikat senarai awam akan menawarkan e-Dividen dan syarikat broker saham menyediakan opsyen e-pembayaran.

* Insentif cukai semasa untuk majukan perkhidmatan kewangan, terutama kewangan Islam, dilanjutkan hingga 2015.

* Pengecualian duti setem 20 preatus ke atas instrumen kewangan Islam.

* Pengecualian cukai ke atas keuntungan perbankan yang diperoleh menerusi operasi luar negara.
* Mulai 1 Januari 2010, kerajaan bersetuju membenarkan agensi kerajaan mengekalkan 50 peratus sewa yang diterima manakala baki 50 peratus lagi dimasukkan dalam perolehan kerajaan.

* Kerajaan akan laksana sistem pengurusan subsidi bahan api pada awal 2010.

* Kerajaan mencadangkan kadar cukai pendapatan maksimum dikurangkan kepada 26 peratus daripada 27 peratus berkuat kuasa mulai tahun penilaian 2010.

* Kadar cukai maksimum koperasi akan dikurangkan kepada 26 peratus manakala kadar cukai tetap bagi individu bukan pemastautin akan dikurangkan kepada 26 peratus.

* Pengecualian cukai persendirian akan dinaikkan kepada RM9,000 daripada RM8,000 berkuat kuasa mulai tahun penilaian 2010.

* Kerajaan mencadangkan cukai pendapatan bagi pendapatan pekerja Malaysia dan pekerja asing yang menetap dan bekerja di Iskandar Malaysia sebanyak 15 peratus berbanding maksium 26 peratus untuk seluruh negara.

* RM14.8 bilion diperuntuk untuk mengurus, membangun dan menaik taraf hospital dan klinik.

* Kerajaan akan terbitkan Sukuk 1Malaysia bernilai RM3 bilion.

* Kerajaan akan mewujudkan Skim Persaraan 1Malaysia yang diurus oleh KWSP.

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Budget incentives for property sector. Petikan TheStar 21/10/2009

ABOLISHMENT of the real property gains tax, reduction in stamp duty for properties in a certain price range, and the construction and property sector gaining most from the stimulus packages announced – these are clear indications of the Government’s focus on this sector to help accelerate economic growth.

The positive multiplier effect from an improved performance in the construction and property sector is tremendous, with the stakeholder chain including the manufacture and supply of building materials; the service industry of contractors, architects, engineers, etc; the developers and even the financial institutions.


This industry is not just about residential and commercial development but also the tourism and industrial economy. It is a holistic economic driver.

Take the tourism industry for example. When tourist arrivals are up, there will also be a boost to hotel and retail consumer demand. With tourism being one of the Government’s top priority growth sectors, there has been a focus on encouraging the development of affordable three-star hotels to attract mass tourists.

However, with the country shifting towards a modern developed economy, we must turn our attention to attracting investments into upmarket, boutique and innovative hotel property development to bring the industry to the next level; tourist arrivals must increase together with the increase in value spending.

Hotel owners should be given additional incentives to bring the investment yield return earlier. It may be worthy to relook at the existing investment tax allowance incentive as well as the availability of duty exemption for materials in hotel property development.

Closely linked to the tourism industry is the availability of retail attractions to complement hotels of similar class, with retail development popularly linked to commercial office space development to provide the consistent retail traffic. Commercial space also remains the top three property interest of Malaysian and foreign investors.

Currently, there are no incentives for the retail sector. Consideration should be given to developing incentives holistically and linking it with initiatives to drive tourism, thus providing further push to the sector. Perhaps tax incentives such as income exemption based on retail investment turnover value or spending on green technology can be given to retail outlets or “green” commercial buildings.

When it comes to landed or high-rise residential properties, crisis or not, there seems to be no lack of demand, with some of these properties being snapped up on launch.

This show of investor confidence bodes well for the real estate sector which has attracted much foreign investment and known to offer a reasonable investment yield.

Hence, we must continue to attract foreign investment into the high-end property development market and leverage our “preferred location” status in this part of the world.

Here, the attraction for foreign investors would not be tax incentives but rather, high quality development with full facilities and in a prime location – the formula to high investment yield. Hence, the Government should continue to deliver on its policies to facilitate a speedy investment process for foreigners.

A final analysis on the property sector is for the Government to consider how it can support the wish of most Malaysians to own their own home. Malaysia has a large middle-income population who strive to own a home and it is this dream which can keep the demand for residential property healthy.

With pockets of initiatives sporadically introduced such as the reduction in interest rates, subsidies given to developers for low-cost housing and even financial institutions’ willingness to reschedule loan repayments, we must ask if more can be done.

Relative to our salary standards, it is becoming more difficult for the middle-income group/family to sustain a home, let alone own one. Suggestions previously put forward such as first home subsidy and deduction for interest expense on loans for home purchases should be reviewed.

Some other thoughts are tax rebates for a certain period of the loan term depending on the value of property purchased, different stamp duty rates for different property prices, unprecedented tax breaks for developers undertaking certain types of projects or development type.

The challenge will be in ensuring that the savings given to developers is passed on.

The property sector plays a crucial role in sustaining and spurring economic growth. There is a compelling need to review and introduce policies that are holistic and integrated, with incentives provided to each player in the property chain and across the portfolio of properties.

● Ng Say Guat is executive director at PricewaterhouseCoopers Taxation Services Sdn Bhd.

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Broad-based, people-friendly budget seen. Petikan TheStar 21/10/2009

SHAH ALAM: SJ Securities Sdn Bhd expects the upcoming Budget 2010 to be broad-based and “people-friendly” with the aim of promoting growth and boosting domestic consumption.

Deputy managing director Peter Lim said smaller contractors were likely to receive more jobs while the man in the street could expect some personal tax incentives that would lift consumer demand.


“I expect it (Budget 2010) to be people-friendly and not burden the public,” he said at the launch of SJ Securities’ new logo at its new corporate headquarters here. He added that personal income tax relief would translate into higher disposable income, which would in turn boost consumption.

But the implementation of the goods and services tax (GST) should be held back as it was not supportive of consumption, he said.

“It should be implemented (only) when the economy has recovered and back on a growing trend,” Lim said.

“We want people to spend to boost domestic consumption. The multiplier effect created would expand the economy.”

Nevertheless, the brokerage anticipates a slight contraction in the economy next year.

“The feel good factor has started to flow in and a recovery is seen on the stock market. However, the question of sustainability remains,” Lim said, adding that there had been an increase in retail participation in the local stock market, although not in a big way.

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RM649mil excess tax refunded late. Petikan TheStar 21/10/2009

Reports by ZULKIFLI ABD RAHMAN, SIRA HABIBU, TAN SIN CHOW, MANJIT KAUR, and LESTER KONG

THE Inland Revenue Board was late in refunding a total of RM648.70mil in excess tax payments to taxpayers between 2006 and last year.

The delay, according to the Auditor-General’s Report, was between 10 days and two years for those wo filed their returns manually and up to one year for those who did it through e-filing.


The report was based on an audit carried out on the Internal Revenue Board (IRB) in January and from August to October last year.

It said the delays were due to changes made to the Self-Assessment System, incomplete or inaccurate information provided by the taxpayers and the fact that IRB staff were overburdened with other duties.

“The IRB client charter states that excess tax should be returned to the taxpayer within three months for those doing manual or postal filings or one month for those carrying out e-filing.

“Of 424 transactions checked, 54.5% of them involving RM648.70mil in excess tax payments were not returned to the taxpayers for a period of between 10 days and two years for manual filings and up to one year for e-filings,” the report said.

In the Auditor-General feedback report, the IRB explained that it had supplied a tax payments guideline which was included in the IRB website to avoid delays.

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