Things are not looking good for the Prime Minister after presenting his 2011 budget. I wonder whether he walks through the budget with his consultants that prepared it or just simply read them without full understanding of it, in Parliament.
Take a look at the Prime Minister response to the great resistance of the 100-storey Warisan Merdeka tower.
Datuk Seri Najib Razak denied today that it was his idea to build the controversial 100-storey Warisan Merdeka tower in the heart of the capital, saying instead the project had been proposed by Permodalan Nasional Bhd (PNB).
There are so many flaws in this one sentence alone. Let me point them out to you.
a)How can he denied it when he already presented it in Parliament. It does not matter whose idea it was but as a leader he must be held responsible because he accepted it without any consultation with others. If he disagree with the proposal, why then he allocated a budget for it.
b)A project still under proposal means it has yet to be agreed or approved by the Government, so why allocate such a huge budget when the project may not be granted approval eventually. Thus, it means that the PM had accepted the proposal without consulting the public and his "People First" means nothing anymore.
c)Who owns Permodalan Nasional Bhd (PNB). This is what PNB is after paying a visit to it's website:
With fund under management totaling about RM150 billion, the PNB Group is the country's leading investment institution with a diversified portfolio of interests that include unit trusts, institution property trust, property management and asset management.
with it's board of trustees as follows:
Chairman
YAB Dato' Sri Mohd. Najib bin Tun Hj. Abdul Razak
Deputy Chairman
YAB Tan Sri Dato' Haji Muhyiddin bin Mohd. Yassin
Y.B. Dato' Mustapa bin Mohamed
Y.B. Dato' Seri Haji Ahmad Husni bin Mohamad Hanadzlah
YABhg Tun Ahmad Sarji bin Abdul Hamid
You can read more details at PNB website here but be warned, many links do not work.
Is PNB government owned or is it a private entity?
If it is government owned why the PM denied that it was his idea, basically if it is government owned then the PM should be consulted first and the public should be informed about it. The PM is the one to object or approve the project.
If it is a private entity which looks more like it, why the hell should public fund be used. PNB should arrange for their own financing if they think their proposal to develop this 100-storey tower can benefit everyone and that in turn means they can make profit out of it.
How can the PM denied that this was not his idea when he is the chairman of the board of trustees. Was he not informed about the proposal long before they decide to allocate the budget for it?
Coming to the 13th General Election. My observation is that its a touch and go situation for umno/bn and the PM knows very well.
Three States are on shaky ground, Perak, Johor and Negri Sembilan and more State seats may be lost in Trengganu, Sabah and Sarawak.
Umno/bn spent millions upon millions at every general election and this 13th GE is gonna cost them much more then usual. They have plenty of money but may not be enough for this 13th GE.
Najib needs to seek a new mandate to strengthen his grip on power knowing that failing to do so will be his downfall. There is a figure within his own party maneuvering to take control over his position.
The surprise which the PM mentioned when asked about the 13th GE, not too long ago, will be that this 13th GE will be for Parliamentary seats only and together with Sarawak state election.
The remaining 12 State assemblies will not be dissolved to allow him to concentrate on just the Parliamentary seats with sufficient funds to ward off the opposition onslaught.
by malaysia for all ( Richard Loh )
Thursday, October 21, 2010
Summary and Highlights of Budget 2011
EPF relief scope extended but limit not increased
Existing EPF relief of maximum RM6,000 is extended to include employees’ contributions to Private Pension Fund (PPF) to be set up by the government in 2011. Employers are allowed for tax deductions for contributions made to the Private Pension Fund. In other word, apart from mandatory contribution to EPF, employees and employers (including self-employed) can now opt to make additional contributions to Private Pension Fund to be set up by the government.
This benefits the lower income group as most of the medium to high income group may already claiming up to the maximum relief of RM6,000 as the relief of RM6,000 is also include the life insurance premium, apart from employees’ own EFP contributions. For employers, this may open up an additional tax planning for tax deductions on such contributions to PPF while rewarding the employees or better structuring the staff remuneration package, as there is a cap allowed for tax deductions in respect of employers’ EPF contributions for staff. Presently, employer contributions to the approved schemes (eg. EPF) in excess of 19% of the employee’s remuneration will be disallowed as tax deductions. However, employer contributions to this new PPF will be allowed for tax deductions and will not count towards the 19% cap.
However, will the employers happy to subscribe to this new PPF? They can always increase the employer (portion) EPF contribution as long it is not exceeding the 19% tax deduction limit. The structure, investment policies as well as return to the new PPF are unknown, compared to the well-established EPF. For those employees who are already claimed at the maximum limit of RM6,000, would they willing to contribute to PPF, in additional to the current mandatory EPF contribution, which may reduce their disposable income but no tax efficiency will be achived as tax relief claimed may already at the maximum limit.
How this new PPF will benefit self-employed persons? If a person carried out a business under the sole proprietorship or partnership (referred to as “business” herewith), the EPF contributions made by the business are not allowed as tax deductions but instead the contributions will be added back and form part of the profit derived from the business by that person and assess for individual tax accordingly. With the introduction of new PPF, contributions made by the business will be allowed for tax deductions.
Parent medical relief scope extended but limit not increased
Current individual tax relief of up to RM5,000 for parents’ medical expenses be extended to cover expenses to care for parents. These expenses are for parents who suffer from diseases or with physical or mental disabilities and who need regular treatment certified by a qualified medical practitioner. This include treatment and care at home, day care centres or home care centres. Currently the tax relief of up to RM5,000 medical expenses for parents are for treatment in clinics and hospitals, treatment in nursing homes and dental treatment (exclude cosmetic dental treatment).
50% stamp duty exemption on housing S&P and loan agreements
First-time Malaysian citizen house buyers will be given stamp duty exemption of 50% on (1) instruments of transfer (i.e sale and purchase agreement) and (2) loan agreement on a residential house price not exceeding RM350,000 during 1 Jan 2011 to 31 Dec 2012. Residential property include a terrace house, condominium, apartment or flat. Question here is – would serviced apartments erected on commercial land be scope out?
Service tax increase to 6%
Service tax rate will be increased from 5% to 6% with effect from 1 Jan 2011. This will impact quite a number of service industry as well as individual consumptions. This may be a temporary measure to increase government revenue while pending the implementation of Goods and Services Tax (GST).
ASTRO monthly subscription fee will be increased with a service tax of 6% with effect from 1 Jan 2011. Service tax of 6% will be imposed on paid satellite broadcasting services in which this service was not subject to service tax previously.
The Budget is more focusing on a macro economy and it appears not too many announcements or tax proposals that are affecting the individuals and companies directly.
No new taxes were introduced. No new policies announced on tackling the speculative buying of real properties, in particular the loan to value cap ratio at 70% or 80%.
No tax reductions for individuals and corporate. There was no announcement on withholding tax on dividend income from Real Estate Investment Trust (REIT).
Nothing was announced on bonus for civil servants.
This Budget is very plain and there was not many tax changes or proposals.
Existing EPF relief of maximum RM6,000 is extended to include employees’ contributions to Private Pension Fund (PPF) to be set up by the government in 2011. Employers are allowed for tax deductions for contributions made to the Private Pension Fund. In other word, apart from mandatory contribution to EPF, employees and employers (including self-employed) can now opt to make additional contributions to Private Pension Fund to be set up by the government.
This benefits the lower income group as most of the medium to high income group may already claiming up to the maximum relief of RM6,000 as the relief of RM6,000 is also include the life insurance premium, apart from employees’ own EFP contributions. For employers, this may open up an additional tax planning for tax deductions on such contributions to PPF while rewarding the employees or better structuring the staff remuneration package, as there is a cap allowed for tax deductions in respect of employers’ EPF contributions for staff. Presently, employer contributions to the approved schemes (eg. EPF) in excess of 19% of the employee’s remuneration will be disallowed as tax deductions. However, employer contributions to this new PPF will be allowed for tax deductions and will not count towards the 19% cap.
However, will the employers happy to subscribe to this new PPF? They can always increase the employer (portion) EPF contribution as long it is not exceeding the 19% tax deduction limit. The structure, investment policies as well as return to the new PPF are unknown, compared to the well-established EPF. For those employees who are already claimed at the maximum limit of RM6,000, would they willing to contribute to PPF, in additional to the current mandatory EPF contribution, which may reduce their disposable income but no tax efficiency will be achived as tax relief claimed may already at the maximum limit.
How this new PPF will benefit self-employed persons? If a person carried out a business under the sole proprietorship or partnership (referred to as “business” herewith), the EPF contributions made by the business are not allowed as tax deductions but instead the contributions will be added back and form part of the profit derived from the business by that person and assess for individual tax accordingly. With the introduction of new PPF, contributions made by the business will be allowed for tax deductions.
Parent medical relief scope extended but limit not increased
Current individual tax relief of up to RM5,000 for parents’ medical expenses be extended to cover expenses to care for parents. These expenses are for parents who suffer from diseases or with physical or mental disabilities and who need regular treatment certified by a qualified medical practitioner. This include treatment and care at home, day care centres or home care centres. Currently the tax relief of up to RM5,000 medical expenses for parents are for treatment in clinics and hospitals, treatment in nursing homes and dental treatment (exclude cosmetic dental treatment).
50% stamp duty exemption on housing S&P and loan agreements
First-time Malaysian citizen house buyers will be given stamp duty exemption of 50% on (1) instruments of transfer (i.e sale and purchase agreement) and (2) loan agreement on a residential house price not exceeding RM350,000 during 1 Jan 2011 to 31 Dec 2012. Residential property include a terrace house, condominium, apartment or flat. Question here is – would serviced apartments erected on commercial land be scope out?
Service tax increase to 6%
Service tax rate will be increased from 5% to 6% with effect from 1 Jan 2011. This will impact quite a number of service industry as well as individual consumptions. This may be a temporary measure to increase government revenue while pending the implementation of Goods and Services Tax (GST).
ASTRO monthly subscription fee will be increased with a service tax of 6% with effect from 1 Jan 2011. Service tax of 6% will be imposed on paid satellite broadcasting services in which this service was not subject to service tax previously.
The Budget is more focusing on a macro economy and it appears not too many announcements or tax proposals that are affecting the individuals and companies directly.
No new taxes were introduced. No new policies announced on tackling the speculative buying of real properties, in particular the loan to value cap ratio at 70% or 80%.
No tax reductions for individuals and corporate. There was no announcement on withholding tax on dividend income from Real Estate Investment Trust (REIT).
Nothing was announced on bonus for civil servants.
This Budget is very plain and there was not many tax changes or proposals.
Wednesday, October 20, 2010
FAKTA RMK-10 (YANG DIBENTANGKAN DI PARLIMEN OLEH PM)
KUALA LUMPUR: Rancangan Malaysia Ke-10 (RMK-10) yang dibentangkan oleh Perdana Menteri Datuk Seri Mohd Najib Tun Razak di Dewan Rakyat hari ini adalah rancangan pembangunan negara untuk tempoh lima tahun.
Pelaksanaan RMK-10 akan bermula dari tahun 2011-2015.
Intipati ucapan Perdana Menteri pada pembentangan RMK10 adalah bertemakan "Rancangan Kemakmuran Ekonomi dan Keadilan Sosial".
Ia dilihat amat kritikal bagi meneruskan kesinambungan prakarsa nasional ke arah merealisasikan Wawasan 2020 menjadi sebuah negara maju dan berpendapatan tinggi.
Berikut adalah fakta-fakta penting RMK-10:
* Memperuntukkan RM230 bilion bagi perbelanjaan pembangunan bagi tempoh lima tahun tersebut.
* Daripada jumlah itu, 55 peratus diagihkan kepada sektor ekonomi, 30 peratus kepada sektor sosial, 10 peratus kepada sektor keselamatan dan lima peratus untuk pentadbiran am.
* Laporan ekonomi itu bagi tempoh 2011-2015 setebal 449 muka surat untuk edisi Bahasa Melayu dan 429 muka surat bagi edisi Bahasa Inggeris, yang diterbitkan oleh Unit Perancang Ekonomi, Jabatan Perdana Menteri akan dijual pada berharga RM80.
* RMK-10 merupakan satu daripada empat tiang utama di bawah pentadbiran Najib. * Tiga lagi tiang tonggak itu ialah Gagasan 1Malaysia: Rakyat Didahulukan, Pencapaian Diutamakan; Program Transformasi Kerajaan (GTP) dan Model Baru Ekonomi (MBE).
* 10 PREMIS UTAMA RMK-10:
Pertama:- Memacu ekonomi domestik dengan kepekaan persekitaran luar negara.
Kedua: Memanfaatkan dan menuas faktor kepelbagaian etnik sebagai satu elemen kejayaan di arena antarabangsa.
Ketiga: Mentransformasi negara ke arah pendapatan tinggi menerusi pengkhususan.
Keempat: Menjayakan pertumbuhan diterajui oleh produktiviti dan inovasi.
Kelima: Memupuk, menarik dan mengekalkan modal insan unggul.
Keenam: Memastikan peluang yang saksama dan melindungi golongan mudah terjejas.
Ketujuh: Pertumbuhan bertumpu, pembangunan inklusif.
Kelapan: Menyokong perkongsian pintar yang efektif.
Kesembilan: Menghargai khazanah alam sekitar.
Kesepuluh: Kerajaan umpama syarikat yang berdaya saing.
* 5 TERAS STRATEGIK Pertama RMK-10:
Pertama: Menggubah falsafah dan pendekatan kerajaan ke arah mentransformasikan Malaysia dengan metodologi NKRA.
Kedua: Mewujudkan persekitaran kondusif bagi menggerakkan pertumbuhan ekonomi.
Ketiga: Menuju ke arah pembangunan sosioekonomi secara inklusif.
Keempat: Membangun dan mengekalkan modal insan bertaraf dunia.
Kelima: Mewujudkan persekitaran kondusif ke arah mempertingkatkan kualiti hidup.
* Peruntukan RMK-10 bagi infrastruktur bukan fizikal meningkat kepada 40 peratus, berbanding 21.8 peratus dalam RMK-9, tumpuan diberikan kepada program pembangunan kemahiran, aktiviti R&D dan modal teroka.
* Sebuah institusi perkhidmatan awam bertaraf dunia akan diwujudkan untuk meningkatkan keupayaan penjawat awam.
* Tumpuan kepada 12 Bidang Ekonomi Utama Negara (NKEA) akan diumumkan Oktober nanti iaitu:
(i) Minyak dan gas (ii) Minyak sawit dan produk berkaitan (iii) Perkhidmatan kewangan (iv) Pemborongan dan peruncitan (v) Pelancongan (vi) Teknologi Maklumat dan Komunikasi (ICT) (vii) Perkhidmatan Pendidikan (viii) Elektrik dan elektronik (ix) Perkhidmatan perniagaan (x) Penjagaan kesihatan swasta (xi) Pertanian (xii) Greater Kuala Lumpur
* Satu unit khas, iaitu Unit Transformasi Ekonomi, akan ditubuhkan untuk merancang, menyelaras pelaksanaan dan pembangunan NKEA.
* Suruhanjaya Persaingan dan Tribunal Rayuan akan ditubuhkan untuk memastikan pelaksanaan undang-undang lebih teratur dan berkesan.
* Kerajaan terus berusaha untuk meletakkan Malaysia di lima tangga terbaik negara paling kompetitif di dunia.
* 1MDB akan membangunkan projek strategik KL meliputi Lapangan Terbang TUDM Sg Besi dan KL International Financial District.
* RMK-10 juga akan memastikan sasaran ekuiti korporat sebanyak 30% untuk Bumiputera dikekalkan.
* Dana berjumlah RM20 bilion akan disediakan melalui Dana Mudahcara atau Facilitation Fund bagi memudahkan sektor swasta membiayai projek perkongsian awam-swasta.
* Melalui Dana Mudahcara, kerajaan anggar menarik pelaburan swasta sekurang-kurangnya RM200 bilion; Antara projek yang dipertimbangkan ialah penambakan tanah di Westport, Pelabuhan Klang, Pembangunan Malaysia Truly Asia Centre di Kuala Lumpur dan Taman Teknologi Tinggi Senai di Iskandar Malaysia, Johor.
* Sebuah unit khas ditubuhkan di bawah Jabatan Perdana Menteri bagi memandu dan mengarah keberkesanan sistem inovasi negara serta program pembangunan inovasi sedia ada.
* Pembiayaan kerajaan kepada syarikat modal teroka awam akan berbentuk ekuiti dan bukan pinjaman.
* Dana Inovasi Mudharabah (MIF) dengan peruntukan sebanyak RM500 juta akan diperkenal bagi menyediakan modal berisiko kepada syarikat modal teroka kerajaan.
* Dana Perkembangan Perniagaan dengan peruntukan permulaan sebanyak RM150 juta akan ditubuhkan bagi merapatkan jurang pembiayaan antara pengkomersilan peringkat awal dan pembiayaan modal teroka bagi produk berteknologi tinggi.
* Undang-undang kebankrapan akan dipermudah untuk menyokong budaya mengambil risiko terhitung, menghapuskan stigma kegagalan dan membenarkan usahawan berkaliber lagi wibawa yang gagal untuk kembali aktif.
Pelaksanaan RMK-10 akan bermula dari tahun 2011-2015.
Intipati ucapan Perdana Menteri pada pembentangan RMK10 adalah bertemakan "Rancangan Kemakmuran Ekonomi dan Keadilan Sosial".
Ia dilihat amat kritikal bagi meneruskan kesinambungan prakarsa nasional ke arah merealisasikan Wawasan 2020 menjadi sebuah negara maju dan berpendapatan tinggi.
Berikut adalah fakta-fakta penting RMK-10:
* Memperuntukkan RM230 bilion bagi perbelanjaan pembangunan bagi tempoh lima tahun tersebut.
* Daripada jumlah itu, 55 peratus diagihkan kepada sektor ekonomi, 30 peratus kepada sektor sosial, 10 peratus kepada sektor keselamatan dan lima peratus untuk pentadbiran am.
* Laporan ekonomi itu bagi tempoh 2011-2015 setebal 449 muka surat untuk edisi Bahasa Melayu dan 429 muka surat bagi edisi Bahasa Inggeris, yang diterbitkan oleh Unit Perancang Ekonomi, Jabatan Perdana Menteri akan dijual pada berharga RM80.
* RMK-10 merupakan satu daripada empat tiang utama di bawah pentadbiran Najib. * Tiga lagi tiang tonggak itu ialah Gagasan 1Malaysia: Rakyat Didahulukan, Pencapaian Diutamakan; Program Transformasi Kerajaan (GTP) dan Model Baru Ekonomi (MBE).
* 10 PREMIS UTAMA RMK-10:
Pertama:- Memacu ekonomi domestik dengan kepekaan persekitaran luar negara.
Kedua: Memanfaatkan dan menuas faktor kepelbagaian etnik sebagai satu elemen kejayaan di arena antarabangsa.
Ketiga: Mentransformasi negara ke arah pendapatan tinggi menerusi pengkhususan.
Keempat: Menjayakan pertumbuhan diterajui oleh produktiviti dan inovasi.
Kelima: Memupuk, menarik dan mengekalkan modal insan unggul.
Keenam: Memastikan peluang yang saksama dan melindungi golongan mudah terjejas.
Ketujuh: Pertumbuhan bertumpu, pembangunan inklusif.
Kelapan: Menyokong perkongsian pintar yang efektif.
Kesembilan: Menghargai khazanah alam sekitar.
Kesepuluh: Kerajaan umpama syarikat yang berdaya saing.
* 5 TERAS STRATEGIK Pertama RMK-10:
Pertama: Menggubah falsafah dan pendekatan kerajaan ke arah mentransformasikan Malaysia dengan metodologi NKRA.
Kedua: Mewujudkan persekitaran kondusif bagi menggerakkan pertumbuhan ekonomi.
Ketiga: Menuju ke arah pembangunan sosioekonomi secara inklusif.
Keempat: Membangun dan mengekalkan modal insan bertaraf dunia.
Kelima: Mewujudkan persekitaran kondusif ke arah mempertingkatkan kualiti hidup.
* Peruntukan RMK-10 bagi infrastruktur bukan fizikal meningkat kepada 40 peratus, berbanding 21.8 peratus dalam RMK-9, tumpuan diberikan kepada program pembangunan kemahiran, aktiviti R&D dan modal teroka.
* Sebuah institusi perkhidmatan awam bertaraf dunia akan diwujudkan untuk meningkatkan keupayaan penjawat awam.
* Tumpuan kepada 12 Bidang Ekonomi Utama Negara (NKEA) akan diumumkan Oktober nanti iaitu:
(i) Minyak dan gas (ii) Minyak sawit dan produk berkaitan (iii) Perkhidmatan kewangan (iv) Pemborongan dan peruncitan (v) Pelancongan (vi) Teknologi Maklumat dan Komunikasi (ICT) (vii) Perkhidmatan Pendidikan (viii) Elektrik dan elektronik (ix) Perkhidmatan perniagaan (x) Penjagaan kesihatan swasta (xi) Pertanian (xii) Greater Kuala Lumpur
* Satu unit khas, iaitu Unit Transformasi Ekonomi, akan ditubuhkan untuk merancang, menyelaras pelaksanaan dan pembangunan NKEA.
* Suruhanjaya Persaingan dan Tribunal Rayuan akan ditubuhkan untuk memastikan pelaksanaan undang-undang lebih teratur dan berkesan.
* Kerajaan terus berusaha untuk meletakkan Malaysia di lima tangga terbaik negara paling kompetitif di dunia.
* 1MDB akan membangunkan projek strategik KL meliputi Lapangan Terbang TUDM Sg Besi dan KL International Financial District.
* RMK-10 juga akan memastikan sasaran ekuiti korporat sebanyak 30% untuk Bumiputera dikekalkan.
* Dana berjumlah RM20 bilion akan disediakan melalui Dana Mudahcara atau Facilitation Fund bagi memudahkan sektor swasta membiayai projek perkongsian awam-swasta.
* Melalui Dana Mudahcara, kerajaan anggar menarik pelaburan swasta sekurang-kurangnya RM200 bilion; Antara projek yang dipertimbangkan ialah penambakan tanah di Westport, Pelabuhan Klang, Pembangunan Malaysia Truly Asia Centre di Kuala Lumpur dan Taman Teknologi Tinggi Senai di Iskandar Malaysia, Johor.
* Sebuah unit khas ditubuhkan di bawah Jabatan Perdana Menteri bagi memandu dan mengarah keberkesanan sistem inovasi negara serta program pembangunan inovasi sedia ada.
* Pembiayaan kerajaan kepada syarikat modal teroka awam akan berbentuk ekuiti dan bukan pinjaman.
* Dana Inovasi Mudharabah (MIF) dengan peruntukan sebanyak RM500 juta akan diperkenal bagi menyediakan modal berisiko kepada syarikat modal teroka kerajaan.
* Dana Perkembangan Perniagaan dengan peruntukan permulaan sebanyak RM150 juta akan ditubuhkan bagi merapatkan jurang pembiayaan antara pengkomersilan peringkat awal dan pembiayaan modal teroka bagi produk berteknologi tinggi.
* Undang-undang kebankrapan akan dipermudah untuk menyokong budaya mengambil risiko terhitung, menghapuskan stigma kegagalan dan membenarkan usahawan berkaliber lagi wibawa yang gagal untuk kembali aktif.
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