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Saturday 30 January 2016

Malaysia 2016 Budget Recalibration / 2016 Budget Recalibration Speech


The Prime Minister(Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak) announced on 28th January 2016 the revised 2016 Budget with 11 recalibrated measures to take into consideration the current global and domestic economic situation. We are here extract the following recalibration for your reference:- 



Measure 1: Employees Provident Fund (‘EPF’) contributions 

The Government agrees to reduce the employees’ contribution to the Employees Provident Fund (EPF) by 3% beginning March 2016 to December 2017. However, the contribution by employers will remain. This measure is expected to incrase private consumption expenditure by RM8 billion a year. 



Measure 2: Special personal tax relief

The Government will provide a special tax relief of RM2,000 to individual taxpayers with a monthly income of RM8,000 or below for the year of assessment 2015. 
Through this measure, although the Government will forego revenue of RM350 million, it will provide individual tax savings of up to RM475 which will benefit two million taxpayers. 



Measure 3:Cost reduction of the daily basic necessities for the rakyat

To reduce the cost of daily basic necessities for the rakyat, the Government will implement the following:
i. The Government will liberalise the control on import quotas or Approved Permits (APs) on eight agricultural produce for a temporary period to ensure consistent supply. 

The produce includes raw coffee beans, buffalo meat, beef and mutton. At the same time, quality and safety requirements on imported goods will continue to be given priority; 

ii. Federal Agricultural Marketing Authority (FAMA) will establish markets or MyFarm Outlets that sell agricultural produce directly such as fish, poultry, meat, vegetables and fruits at prices between 5% and 20% below market prices. For a start, the first outlet will be opened in Precinct 7, Putrajaya in March and expanded nationwide to 10 other locations in town centres this year; 

iii. To ensure that the rakyat enjoy fair prices of goods, I have directed the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) to identify more fair price shops including foreign and local hypermarkets.
Thus, fair price shops will be increased from 640 to 1,000 shops this year; 

iv. At the same time, MDTCC will step up enforcement and take legal action on non-ethical businessmen who take the opportunity of profiteering;
v. To safeguard the paddy farmers as well as to increase paddy production, the Government will provide an additional cash of RM50 for every metric tonne of cleaned paddy as an input incentive for paddy production. At the same time, the Government will improve the implementation of paddy grading through a standard grading system; and 

vi. The Government is very concerned for the rakyat who are affected by the  increase in the cost of living, particularly the hardcore poor. Thus, MyBeras programme will be introduced where every registered hardcore
poor household will be supplied with 20 kilogrammes of rice every month until December 2016 to reduce the burden of poor households. 



Measure 4: Property development

With immediate effect, for all new housing projects, the Government mandates that all houses priced up to RM300,000 be limited to first-time house buyers only.
  
The Government will also organise Integrated House Ownership Expo Roadshows which offer houses under the National Housing Department (JPN), 1Malaysia People Housing Programme (PR1MA), Syarikat Perumahan 

Negara Berhad (SPNB), Perumahan Penjawat Awam 1Malaysia (PPA1M) and state agencies as well as the private sector. More than 100,000 housing units will be offered under the programme.

In addition, for houses priced at RM35,000 under the People’s Housing Programme (Projek Perumahan Rakyat or PPR), I am pleased to announce that the Government through Bank Simpanan Nasional (BSN) and Bank Rakyat will offer a financing package at 4% involving a fund totalling RM400 million. This initiative will benefit more than 10,000 house owners.



Measure 5: Human Resources Development Fund (HRDF) 
As announced in the 2016 Budget, 30% from the levy contribution to the Human Resources Development Fund (HRDF) amounting to RM200 million will be provided to enhance the competency and skills of employees through reskilling and upskilling, including retrenched workers. 


Measure 6: Tax collection
To enhance the efficiency and amount of tax collection, the following measures will be implemented:
i. The Government will double compliance and auditing efforts on tax evaders;
ii. The Government to give special consideration on relaxation for penalty on taxpayers to encourage them to come forward and declare their past years’ income. The tax arrears must be settled before 31 December 2016; 

iii. For duty-free islands, to reduce leakages which resulted in revenue loss of nearly RM1 billion, the Government will restructure the selling channel of cigarettes and liquors limited to duty-free outlets licensed by the Royal Malaysian Customs Department (RMCD); 

iv. The free duty treatment on imported vehicles in duty-free islands will be tightened.However, the restructuring of sales on cigarettes, liquors and vehicles will not affect the tourists and locals who are residing in these duty-free islands; 

v. The Government will optimise the revenue from the telecommunication  spectrum through a redistribution and bidding process which will be implemented soon; and
vi. To invigorate economic activity, the Government will develop several strategic areas owned by the Government through a bidding process. 


Measure 7: Foreign Workers
Under the initiative of the Deputy Prime Minister, as the Chair of the Foreign Workers Committee, the Government will streamline the management of the foreign workers system whereby the levy will be clustered into two categories only. This does not include the foreign domestic maid category.

In addition, the Government has agreed to implement the Rehiring Programme to provide opportunities for Foreign Workers Without Permits (PATI) in the country to be given valid work permits. The implementation of this programme is to fulfil industry demand as well as to enable the Government to ascertain the number of PATI in the country for the purpose of security monitoring.


Measure 8: Government Spending
The Government will be more prudent in spending, particularly on supplies and services; continue efforts to rationalise the provision of grants to Government Trust Funds, federal statutory bodies and GLCs; as well as rationalise and restructure entities, including Companies Limited By Guarantee (CLBG) and statutory bodies. 


Measure 9: Development Expenditure
With regard to development expenditure, focus will be given to projects and programmes that are rakyat-centric, as well as with high multiplier effect and low import content. 

Physical projects that will be prioritised include construction of affordable houses, hospitals, schools, roads and public transport as well as security. The implementation of non-physical projects and projects that are still under study will be rescheduled. This measure is expected to involve a reduction in cash flow commitments up to RM5 billion and does not affect the economy and the rakyat.


Measure 10: Development financial institutions
Development financial institutions (DFIs) and Government owned venture capital funds (VCs) will increase their financing funds by RM6 billion to provide financing to small and medium enterprises (SMEs) and startup companies.


Measure 11: Narrow the Income Gap
PM urge the GLCs to implement the initiative to narrow the income gap between higher management and employees gradually. The private sector is also urged to implement the same initiative. This will be monitored by the Economic Planning Unit (EPU).


2016 Budget Recalibration Speech for your reference:-

Thursday 17 December 2015

Complete Malaysian GST Awareness Talk Hand-note



Feeling that Malaysian GST very complicated, and too many reference?


This is one of the best choice for you to fully understand Msia's GST Principles brought to you by one of the Pioneer GST Agent (Consultant) which cover GST with layman term from every angle of the Act.


Note: You may click on the last 2 post for the presentation (Sern GST Awareness Talk - Part 1 (March 2015) / Sern GST Awareness Talk - Part 2 (March 2015))


(it may take some time to load as it contain a very large file which can only support by Desktop or Laptop, apologise for inconvenient and wish this may help.)


Sern GST Awareness Talk - Part 2 (March 2015)

Sern GST Awareness Talk - Part 1 (March 2015)

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