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With the upcoming Touch 'n Go Visa prepaid card, Malaysians can enjoy the best of both worlds, as the card complements Touch 'n Go eWallet's existing network of QR merchants in Malaysia with Visa's broad network of more than 70 million merchant locations globally.
Visa country manager for Malaysia Ng Kong Boon as the Covid-19 pandemic is expected to accelerate the transition of the country towards a fully cashless society by 2025, the company is pleased to partner with Touch 'n Go to enable more consumers to adopt digital payments through the issuance of a Visa card.
"Through this partnership, we also look forward to jointly launching a varied set of financial service offerings with Touch 'n Go for the unbanked and underserved segments in Malaysia, leveraging the global accessibility of Visa's network partners," he said.
The Touch 'n Go-Visa Prepaid Card will offer Touch 'n Go eWallet additional cash-out options through enabling last-mile withdrawals at Visa enabled ATMs domestically and globally.
“Budget 2022 has given a good direction and area of focus for the E&E sector to grow, and we look forward to more development as Malaysia pushes towards Industry 4.0,” he told Bernama.
Meanwhile, Wong hoped to have more comprehensive details in regard to the federal government’s allocation of RM423 million in grants prepared for companies embarking on research and development activities.
He questioned if applied and commercial research is also eligible for the grant.
“Applied and commercial research is essential as it involves conducting studies and experiments that solve practical problems in our society, which potentially results in bringing more sales for the economy,” he said.
According to the Budget 2022 announcement, the grant also includes an allocation of RM295 million for public universities to play a role in the research and innovation ecosystem as well as encourage industry collaboration.
In the Budget, it has been proposed that income tax be imposed on residents in Malaysia on income derived from foreign sources and received in Malaysia from Jan 1, 2022. This, Sim said, is in response to global developments such as the global minimum tax and the recent European Union’s action to include Malaysia in its “grey list”.
"This is a significant overhaul of our taxation system, which has been predominantly a territorial tax system. Some of the key issues to address is if dividends received locally will now be taxed because the law currently exempts local dividends from income tax due to the single-tier system that Malaysia adopts. There should also be a facility to claim tax relief should the same income be subject to tax elsewhere. In Singapore, certain foreign sourced income, such as foreign sourced dividends, are not subject to Singapore tax subject to fulfilment of certain conditions," Sim said.
"More details should be provided in the Finance Bill in this regard and I hope that there are special circumstances available for companies to continue to enjoy exemption for such income," he added.
KUALA LUMPUR (Sept 8): Eleven Malaysian outfits have made it to the Forbes Asia’s 2021 Best Under A Billion list, which recognises 200 top-performing publicly listed small and midsized companies in the Asia-Pacific region with sales under US$1 billion.
The Malaysian companies in the list are Comfort Gloves Bhd, D&O Green Technologies Bhd, Dancomech Holdings Bhd, Dufu Technology Corp Bhd, FoundPac Group Bhd, Frontken Corp Bhd, Revenue Group Bhd, Scientex Bhd, Thong Guan Industries Bhd, UG Healthcare Corp Ltd and ViTrox Corp Bhd.
It said their sound financial figures reflect how well these companies coped in the midst of a global pandemic, with healthcare and pharmaceutical-related companies being standouts, while tech and logistics firms linked to the global e-commerce boom also benefited.
On its methodology, Forbes Asia said the list is meant to identify companies with long-term sustainable performance across a variety of metrics.
It said the companies on this list, which is unranked, were selected based on a composite score that incorporated their overall track record in measures such as debt, sales and earnings-per-share (EPS) growth over both the most recent fiscal one- and three-year periods, and the strongest one- and five-year average returns on equity (ROEs).
Aside from quantitative criteria, qualitative screens were used as well, such as excluding companies with serious governance issues, questionable accounting, environmental concerns, management issues or legal troubles.
State-controlled and subsidiaries of larger companies were also excluded.
KUALA LUMPUR, 30 Oct 2021 - Group managing director of property consultancy firm William's Dahar & Wong Ltd (CBRE|WTW) said the government had made a commendable budget for next year despite the tough financial situation, but wanted the housing sector to move towards sustainability, such as investing in solar panels and green technology. He said the exemption of property profit tax for nationals and permanent residents who sell their properties more than six years ago would encourage more households to upgrade their existing homes...
KUALA LUMPUR, 30 Oct 2021 - The government has stressed the importance of raising the debt ceiling to 65 per cent of GDP in order to finance the government's budget deficit in the medium term, including the need to finance the implementation of the 12th Malaysia Plan. Finance Minister Tunku Zafrul said that while the government's debt ceiling was raised to 65 per cent, what was more important was the government's ability to repay loans.
Malaysian Association of Small and Medium Enterprises (MASME) deputy president and chairman of the Malaysian Cross Border E-Commerce Association (MCBEA), Tan Chee Hiong, said that when the government adjusts the sales tax on overseas imports, it will mean "equal competition" between domestic and foreign e-commerce operators and brick-and-mortar shops, which may boost the business of brick-and-mortar shops as they compare prices.
"Prior to this, consumers were exempted from tax on goods under RM500, while local brick-and-mortar shops offered higher prices due to various cost considerations.
"Most importantly, when there is little difference in the price of products between foreign online shopping and local online shopping, consumers will choose local online shopping and a large amount of cash will stay in the country instead of leaving overseas, which is beneficial to the country."
Under the Budget 2022 proposal, from 2023 onwards, sales tax will be mandatory for both local and foreign merchants who sell cheap products below RM500 to our consumers by air, whether through online formats.
<Consumers will have to foot the bill>
Malaysian Electronic Commerce Association (MEA) director Ceng Jiejun said it was good that the government had imposed a sales tax on cheap products flown in, which was a recognition of the internet industry, but the wool comes off the sheep's back and ultimately consumers will pay for it.
He said online shopping is already part of everyday life and with the tax on foreign airfreight to the country under RM500, the prices of some goods may be adjusted in the short term and may be absorbed by some businesses themselves, but in the long run, the sales tax is treating all businesses equally.
"In the short term, it will affect consumers' willingness to buy, but I believe they will get used to it after a while, after all, it is now an e-commerce market.
"We are still waiting for more announcements from the authorities, including the rate of taxation, before we can really grasp the impact of the tax."
The interviewed industry members said that in the past year, some building materials prices have risen sharply or even close to 100 per cent, which has brought problems to the industry that has already undertaken projects, not only to face the test of thinning profits, but also to face big pressure on capital.
The industry pointed out that with the recovery of the domestic economy, steel demand has also increased significantly; however, on the other hand, due to the tightening measures in the past due to epidemic prevention, production has been affected and demand exceeds supply; coupled with the rise in the price of steel raw materials, so that the water rises.
"I'm afraid it will take some time to pull steel back to a reasonable price level."
Contractors fear bankruptcy as construction continues at old prices
Contractors across the country are complaining and fearing the risk of bankruptcy as the price of construction materials, especially steel, has soared by 60 to 100 per cent since the beginning of the year and this is expected to continue.
To add to their woes, the price of iron has risen a further 20 to 30 per cent in the last two weeks. The price of an iron bar has gone up from RM250 to RM300 to RM320.
According to reports, some retail shop owners say that the price is not fixed and is expected to continue to soar.
In the face of soaring prices for building materials, contractors have no choice but to continue to work on construction projects at the old agreed prices.
A construction contractor claimed that with the recent sharp increase in the price of steel from RM2,800 to RM4,000 per tonne, the average contractor has only two options, namely to postpone the construction work or to continue with the project already agreed upon and suffer losses.
"Apart from steel, other commodities such as cement, sand, bricks, electrical wires and pipes are also getting more expensive, with increases ranging from 20% to 100%. The price of cement, which used to be RM16 to RM17 per bag, has increased to RM19 refers to RM20."
Fang Tianfu: Industry caught unprepared
Steelmaker Datuk Fong Tien Fook said the price of some steel products had exceeded RM5,000 per tonne, catching the industry off guard and putting pressure on builders.
Chee Yuan Sheng: Losses on previous orders
The price of the project was based on the prevailing steel price, which was also the agreed price.
However, due to the emergence of unanticipated price increases, resulting in pre-orders or face losses, some peers even have to bear the burden themselves.
The spot market for steel is also very tight now, he said, mainly because market demand has recovered. In addition, iron ore, the raw material for steel, is also facing the problem of endless price increases, which will also have a direct impact on steel price movements.
Wong Po Chun: Regulate the steel market
Malaysian Chamber of Real Estate Developers Kelantan Branch treasurer Wong Po Chun called on the government to monitor and regulate the steel market to avoid outrageous price hikes that would indirectly affect the construction industry.
He said that the increase in the price of building materials would have a significant impact on the construction industry, as the price of a signed sale and purchase agreement could not just go up.
He believes that the construction industry is an important part of the country's economic recovery, the government must not ignore the price hike of building materials and let the construction industry, an important sector of the economy, go unchecked.
Land division fees soar 500%
Construction industry in crisis
When questioned, Wong Po Chun cited the example of a land application for a subdivision that used to cost around RM100,000, but now costs RM500,000 to RM600,000.
"Not only have lot subdivision fees skyrocketed, but many taxes are also going up, such as the fees for submitting plans to the local government, etc. I hope the government is sympathetic to the plight of developers and builders."
Wong Po Chun said that the construction-related taxes and fees have risen at an alarming rate, and developers are feeling overwhelmed, especially during the epidemic and the control order, which has left them hurting.
He said that developers had reflected their problems to the Chamber and expected the Government to reduce taxes and fees to the pre-coronary epidemic level.
He said that the Chamber would submit a memorandum to reflect the problems faced by developers as soon as possible.
In addition, Mr Wong stressed that developers are also facing a severe shortage of foreign workers.
He said the 20 to 30 per cent increase in the price of building materials was already too much for developers to bear, and that for some small projects, they could get by, but for large projects, it was hard to say what to say.
He said that the construction industry has always preferred to hire foreign workers, mainly because they can do one job to three, while local workers not only demand high wages, but also do not want to work in a hard industry.
"Now that we can't hire foreign workers and local people are reluctant to work in the construction industry, the progress of construction projects has been affected to a certain extent."
He stressed that instead of teaching people to fish, the government should teach them to catch fish and change their attitude towards work on their own initiative.
KUANTAN, 30 Oct 2021 - President of the East Coast Chinese Chamber of Commerce & Industry (ECCCI), Tan Sri Lim Keng Seng, said the government's decision to impose a prosperity tax on large corporations earning more than $100 million would not affect market sentiment as the number of companies involved is very small and the impact is not widespread. He is also the President of the Pahang Chinese Chamber of Commerce and Industry and the Pahang Wood Industry Association. He said in a statement that while SMEs are generally looking forward to a tax cut from the Government to help them...
Subject to SEC jurisdiction Luno eyes cryptocurrencies
With global markets in turmoil, assets such as stocks, funds, bonds and gold are struggling. In contrast, cryptocurrencies, the world's largest cryptocurrency by market capitalisation, Bitcoin, has recently rebounded and is even heading for all-time highs after a downturn, despite the fact that several governments, including China and the US, are planning to increase oversight of cryptocurrencies. Bitcoin (BTC) has gained 31% since October. Other cryptocurrencies are also showing...
Inflationary pressures extend - US 3.6% 30-year high, Europe 4.1% 13-year high
The US Federal Reserve's preferred measure of inflation, the core personal consumption expenditure price index (core PCE), rose by 3.6% in September, unchanged from the previous month, and remained at a 30-year high. Eurozone inflation also surged further to 4.1% in October, hitting a near 13-year high...
Prosperity tax to support government initiatives in trying times, say tax experts
KUALA LUMPUR: The proposed one-off "Cukai Makmur" (prosperity tax) announced in 2022 Budget is in support of the government's initiative that those prospering in such trying times assist those adversely affected in the spirit of Shared National Prosperity.
KUALA LUMPUR (Oct 31): The Ministry of Finance (MoF) has launched the Manfaat #Bajet2022 Portal to make it easier for the people to learn about the benefits provided in Budget 2022. This was announced by Finance Minister Tengku Datuk Seri Zafrul
Manufacturers willing to absorb sugar tax should have little impact
By Zou Lihua (Ipoh 31) - The General Chamber of Grocers (GCC) does not believe that the proposed domestic tax on chocolate or sugary beverages made from cocoa, malt, coffee and tea will lead to a price hike, although tea room operators are expecting a price hike for tea. Speaking to Nanyang Siang Pau today, Malaysian General Chamber of Grocers president Fong Chi Min said that many manufacturers have already introduced reduced prices in the pursuit of health...
Market earnings outlook dampened by higher taxes — Credit Suisse
TheEdge Mon, Nov 01, 2021
KUALA LUMPUR (Nov 1): The outlook for market earnings is dampened by higher taxes announced for Budget 2022, opined Credit Suisse Research.
It noted in a Monday report that the stamp duty increase for stockbroking trades will increase the cost of trading and could adversely impact trading activity.
Meanwhile, it also estimated that the one-off increase in corporate tax rate could reduce Credit Suisse’s market growth forecast for Malaysia to 2% in 2022 (from 13%).
The foreign research house pointed out that “almost all companies” in its coverage universe “are expected to suffer a reduction in 2022 projected net profit due to the one-off corporate tax increase”.
The government aims to increase its tax revenue by 5.9% year-on-year to RM171.4 billion in 2022 with measures that include increasing stamp duty on contract notes from 0.1% to 0.15% and abolishing the RM200 limit, as well as one-off corporate tax increase for year of assessment 2022 to 24% tax rate for first RM100 million income and 33% tax rate for income more than RM100 million, it said.
While the higher one-off corporate tax is expected to reduce 2022 earnings of most companies, Credit Suisse listed the stocks/sectors that are “perceived to be in a comparatively better position to cope under Budget 2022”, which include: CTOS Digital Bhd, banks (top picks: CIMB Group Holdings Bhd, RHB Bank Bhd), property (Sime Darby Property Bhd, S P Setia Bhd), construction (Econpile Holdings Bhd, Gamuda Bhd), electric vehicle sector (Sime Darby Bhd, Yinson Holdings Bhd).
Meanwhile, RHB Research estimates a “worst-case impact of up to 12% on corporate earnings”, although this should be offset by the positive spillover to the broader economy from the expansionary budget proposals.
“Such a windfall tax is unprecedented in scope and scale — and should be categorised by investors as a policy risk, as well as a negative from the perspective of attracting new foreign direct investments and regional competitiveness, reflecting the country’s narrow revenue bandwidth and limited fiscal headroom,” it noted in a Saturday report.
The stamp duty increase on contract notes to 15bps from 10bps, and removal of the RM200 cap could dampen Bursa Malaysia’s trading velocity, it added.
“While the ongoing domestic economic recovery story will be supported by the consumer-friendly Budget 2022, evolving policy risks and the market’s adjustment to the broad scope of the windfall tax will add to market volatility,” RHB Research said.
“Given the overhanging external risks and lack of a clear roadmap to achieve further fiscal consolidation going forward, we expect the market to re-rate lower, even as forward P/Es spike higher with downside risks to FY22 earnings. Nonetheless, a sharp pullback could be an opportunity to re-weight into recovery plays at lower levels, including looking out for 'bombed-out' stocks,” it added.
RHB Research is "overweight" on sectors that include banks, healthcare, gaming, basic materials, oil and gas, transport, and logistics.
KUALA LUMPUR: The proposal to increase stamp duty for contract notes from 0.1 per cent to 0.15 per cent and the abolishment of the limit for stamp duty of RM200 per contract note will be the two proposals under the 2022 Budget that will have a negative impact on Bursa Malaysia.
Further, introducing a one-off special tax under Cukai Makmur or prosperity tax in 2022 with a higher tax rate of 33 per cent will also negatively impact the local exchange, CGS-CIMB Research said today.
The research firm has cut Bursa Malaysia's financial year 2022 (FY22) net profit forecast by 8.1 per cent to factor in the higher tax rate under Cukai Makmur.
It has also reduced its target price-earnings ratio (P/E) for Bursa Malaysia from 25.8x to 21.1x due to the expected decline in equity average daily trading value (ADTV).
CGS-CIMB Research said equity ADTV plummeted by 23.1 per cent quarter-on-quarter (QoQ) and 49.5 per cent year-on-year (YoY) in the third quarter (Q3) 2021.
"This caused Bursa Malaysia's equity income to decline by 18.6 per cent QoQ and 41.7 per cent YoY.
"Consequently, Bursa Malaysia's net profit dwindled by 10.2 per cent QoQ and 34.5 per cent YoY in Q3 2021.
"We are projecting a net profit of RM84.4 million for Bursa in the fourth quarter (Q4) FY21, representing QoQ growth of 5.7 per cent but a YoY decline of 19.4 per cent," it added.
CGS-CIMB has downgraded Bursa Malaysia to 'Reduce' from 'Hold' previously with a lower target price of RM6.59 from RM7.48.
KUALA LUMPUR (Nov 2): The Ministry of Human Resources (KSM) has directed all its agencies to study in depth and identify future challenges with the onset of the Industrial Revolution 4.0 (IR4.0).
Its minister Datuk Seri M. Saravanan said the move is to produce human capital on par with international standards as the country, including the rest of the world, headed towards rapid development.
“It is not only unemployment issues but more towards providing competitive human capital because we do not know what the future challenges will be.
Responding to queries on Tuesday, Carlsberg Malaysia said: “We would also like to reiterate that the price adjustments are to our trade partner and we do not determine retail (consumer) prices, which are set independently by our customers.”
The letter, signed by the group’s sales director Gary Tan, said the new prices for beer and stout would take effect from Nov 15.
“The contents of the letter are meant to be treated with strict confidentiality between us as a manufacturer and our trade partner. As such, we regret that the letter and information contained therein have been circulated publicly in an irresponsible manner.
“It is up to the retailers to determine consumer prices according to their business needs,” it added in an email statement.
In an appendix marked private and confidential, Carlsberg provided a list of prices to retailers in Peninsular Malaysia.
The list showed that the price of a crate of 24 320ml cans of Green Label will be RM182.88, while a crate of Smooth Draught will be RM188.16, Asahi (RM213.36), K1664 Blanc (RM228.96), Somersby (RM185.28), Connor’s (RM203.76), Royal Stout (RM189.36), Special Brew (RM229.20), Skol (RM154.80), Jolly Shandy (RM44.88) and Nutrimalt (RM45.60).
Meanwhile, Corona (24 pints) will be priced at RM366.72 and Brooklyn (24 pints) at RM339.84.
Chinese steel production cuts, US steel prices soar by over 200% and Japan Steel cuts steel capacity
The global epidemic tensions have now been appropriately reduced, although the economic and other issues arising from it continue to fester. It is reported that steel supply issues arising from the epidemic are currently causing significant problems in the US. Recently, it has been reported that following the reduction in steel production in China, Japan has also issued a policy to reduce steel production capacity.
US steel supply problems get worse
Steel prices within the US have soared for many months, up 213%, according to a report in Fortune magazine. The report shows that the price of steel in the US has soared from US$615 per tonne to US$1923 per tonne over the same period. Obviously, the situation of steel in the United States has been very "abnormal". In this regard, the analysis of the people concerned said that there are three main reasons behind this situation.
The first is the huge demand for steel in the manufacturing sector after the epidemic situation has stabilised, the second is the inflation brought about by US monetary policy, and the third is the gradual increase in production restrictions in China, which accounts for 57% of global steel production. The Wall Street Journal noted that the Chinese government's macro-regulation has led to a significant reduction in steel production capacity, with the reduction in steel production between May and July being twice as large as the UK's total annual output.
In fact, the main reason why China is reducing its steel production capacity is to make a global contribution, i.e. to solve the global climate problem. It is known that before the limits on steel production capacity, there were many small workshops producing steel in China. It should be noted that although these were small workshops, the quality of the steel produced was no less than that of large companies, which is why the Chinese government rarely intervened in them. However, nowadays, in order to promote global climate issues, these small workshops are rare, as they are not as regulated as large companies in terms of environmental issues.
What Affects Your Stocks Investment Return?
A. What people know?
B. What people don’t know?
4.Investor Perception & Expectations
5.Influencer on Social Media
8.Foreign Funds Moves
9.Merger & Acquisition
15.Inclusion/Exclusion to or from the Index
16.Business Trends & Environment
17.Major holding Change
18.Local & Global Economy
C. What people will forever never know?
1.Short Sellers (hedge funds, family offices)
2.Price Manipulation Syndicate
3.Government Contract Grants
4.Politicians Insider Trades
6.Off-Market Buy or Sell
7.Company Lobbying Governments
UOB economists foresee firmer labour market recovery after Malaysia’s total employment hits new high in September
KUALA LUMPUR (Nov 9): Economists said Tuesday they expect a firmer recovery of Malaysia's labour market going into the fourth quarter of 2021 and into 2022, after its total employment hit a new high in September. UOB Global Economics and Market Research economists ...
TheEdge09 Nov, 2021 18:14pm
hello anybody here, can anybody teach me how to buy this counter? any declaration required to trade ?
According to the Visa Consumer Payment Attitudes study, both contactless cards (92 per cent) and digital wallets (81 per cent) are widely used in Malaysia.
Data shows that 77 per cent currently use both.