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Thursday, March 12, 2009

HIGHLIGHT OF 2ND ECONOMIC STIMULUS PACKAGE

Highlight below the strategy that affect the general worker/businessman

1. Tax

 

2. Cash flow

 

3. Finance

Wednesday, March 11, 2009

Economic Stimulus Package

(Speech of Second Economics Stimulus Package dated 10th March 2009)

 

Summary of RM60 B (implemented over two year - 2009 and 2010) package are as follow:

This package account for almost 9% of GDP and will result in increased in the Budget deficit from 4.8% to 7.6%.

The Package have four thrust together with the relevant allocation as shown below:

Thrust RM B
1. Reducing Unemployment and Increasing Employment Opportunities 2
2. Easing the Burden of the Rakyat, in particular, the Vulnerable Groups 10
3. Assisting the Private Sector in Facing the Crisis 29
4. Building Capacity for the Future 19

The package will be implemented over two year in the following form

  Total RM B
Fiscal injection 15
Guarantee funds 25
Equity investments 10
Private finance initiative and off-budget projects 7
Tax incentives 3

fiscal injection

RM10 billion is allocated for 2009 and RM5 billion for 2010.

The RM10 billion for 2009 consists of RM5 billion for operating expenditure and RM5 billion for development expenditure.

 

Summary of various action under the relevant thrust: 

FIRST THRUST: REDUCING UNEMPLOYMENT AND INCREASING EMPLOYMENT OPPORTUNITIES

  • Unemployment rate expected to increase to 4.5% (3.7% 2008)
  • Since Oct 2008,
    • 25,000 worker retrenched
    • 30,900 temporary laid-off
    • 23900 tpaycuts
    • 100,000 no overtime work

Strategy

1. Providing Training and Creating Employment Opportunities

2. Welfare of Retrenched Workers

3. Creating Job Opportunities in the Public Sector

4. Opportunities for Post-Graduate Education

5. PROSPER Graduate Programme

6. Efforts to Reduce Foreign Workers

 

SECOND THRUST: EASING THE BURDEN OF THE RAKYAT, IN PARTICULAR THE VULNERABLE GROUPS

  • Eliminate hardcore poverty by 2010
  • assist oil palm and rubber smallholders affected by declining commodity prices
    • through re-planting, integrated farming and livestock breeding schemes
    • in the events income of smallholders falling below poverty line income, assistance under the Social Safety Net Scheme will be extended to them
  • ensure prices of necessities and transport cost do not burden the rakyat
    • RM674 M for necessities price subsidies (sugar, bread, wheat flour)
    • RM480 M to curb increase in toll rates
  • total subsidies in 2009 RM27.9 M

Strategy

7. Increasing Home Ownership

8. Improving Public Infrastructure

9. Government Savings Bonds

10. Improving School Facilities

11. Basic Amenities in Rural Areas

12. Programmes in Sabah and Sarawak

13. Microcredit Programmes

14. Assisting the Less Fortunate

15. Ensuring Welfare of Retrenched Workers

16. Incentives for Banks to Defer Repayments of Housing Loans

 

THIRD THRUST: ASSISTING THE PRIVATE SECTOR IN FACING THE CRISIS

17. Working Capital Guarantee Scheme

18. Industry Restructuring Loan Guarantee Scheme

19. Facilitating Access to Capital Market

20. Attracting High-Net-Worth and Skilled Individuals

21. Reducing Cost of Doing Business

22. Promoting the Automotive Sector

23. Aviation Industry

24. Accelerated Capital Allowance

25. Carry Back Losses

26. Profit Levy on Oil Palm

27. Promoting Tourism

 

FOURTH THRUST: BUILDING CAPACITY FOR THE FUTURE

28. Investments by Khazanah Nasional Berhad

29. Off-Budget Projects

30. Private Finance Initiative (PFI)

31. Liberalisation of Services Sector

32. Role of Foreign Investment Committee (FIC)

33. Development of Creative Arts Industry

34. Effective Management of Government Financial Resources

Further reading

Appendix 10

Appendix b

Summary of Economics Stimulus Package dated 4th November 2008 (valued at RM7 B)

ESP34. Effective Management of Government Financial Resources

  • government procurements will be through open tenders or restricted tenders, except for specific cases
  • enhance transparency in management of procurement through e-Perolehan system
  • design and build projects will not be allowed except in cases requiring high technical expertise
  • project proposal to obtain approval from Standards and Costs Committee
    • agencies to implement projects according to cost, cost limits, project scope and plans, as approved
    • changes without approval of the Committee will not be allowed
    • increase the numbers of professionals (engineers, architects, quantity surveyors) to strengthen the roll and effectiveness of the Committee
    • the Committee to submit periodic reports to Cabinet on standards compliance and related issues
  • support development of domestic industries through Government procurement
    • mandate the use of local materials, products or services and give priority  to local manufacturers
    • imported items only if they cannot be sourced locally or cost of local products too high
  • encourage private sector to give priority to local products in their procurement.

ESP33. Development of Creative Arts Industry

  • RM20M for RTM to implement projects to develop the local music industries

ESP32. Role of Foreign Investment Committee (FIC)

  • to formulate new guidelines to reflect its new role of monitoring investments at the makro level
    • adopting a more liberal approach to bring positive changes and nurture a more investor-friendly environment to attarct more investment, including FDIs
  • at micro level - guidelines focusing only in sectors of national interest
    • ports, airports, defence, public transportation, telecommunication

ESP31. Liberalisation of Services Sector

  • currently contributes 55% of GDP and hsa potential to contribute more than 70% to GDP as in developed countries
  • take steps to bring in more professionals and technology and strengthen competitiveness
  • in line with Malaysia's commitments under the ASEAN Framework Agreement on Services, and the World Trade Organisation

ESP30. Private Finance Initiative (PFI)

  • RM2B to boost private investment - private companies invited to bid for the funds
  • Projects characteristics
    • private sector to implement, finance and assume project risks. Revenue generated principally from private sector and not from government sources
    • government financial assistance only constitute a small portion of project investment cost.
    • must be in strategic sector (education, health and tourism), have high spillover effects, create sustainable job opportunities, enhance nation's competitiveness
  • Among projects approved are
    • infrastructure for Tanjung Agas industrial park - spur creation of industrial cluster in the Eastern Corridor Economic Region (ECER)
    • biotechnology cluster in Iskandar Malaysia - to facilitate FDI inflows
    • upgrading traffic infrastructure system around KL Sentral - facilitate new private sector investment valued at RM3B over nest 3 year for development of new offices, hotels and shopping complexes
  • Education
    • increase the number of scholarships for entry into local private universities
    • GLCs committed to establish 10 not-for-profit private schools

ESP29. Off-Budget Projects

  • worth RM5B project
  • RM2B LCCT at KLIA
  • RM250M expansion of Pulau Pinang Airport
  • RM2.4B by Malaysia Communication and Multimedia Commission (MCMC) to improve telecommunication structure including
    • broadband libraries
    • broadband community centres
    • basic telephony services in 89 districts in rural areas
  • RM100M to construct sky bridge and covered walkways between buildings, especially in the Golden Triangle, Kuala Lumpur

ESP28. Investments by Khazanah Nasional Berhad

  • investment fund increased by RM10B
  • invested over 2 year
  • priority given to domestic investments with high multiplier effects and create job opportunities sector
    • telecommunication, technology, tourism, agriculture, life science and Iskandar Malaysia
  • 2009
    • invest RM3B in telecommunication sector
      • facilitate its subsidiary to improve broadband infrastructure
    • invest RM1.7B to intensify development of Iskandar Malaysia
      • for building of infrastructure, hotels,theme parks and universities
  • Agricultural projects include
    • 1,000 hectare prawn aquaculture project in Setiu, Terengganu
    • 200 hectare modern vegetable-farming project in Cameron Highlands
  • By 2011 expected to create 70,000 job opportunity

Tuesday, March 10, 2009

ESP27. Promoting Tourism

  • allocate RM200M to
    • upgrade infrastructure in tourist spots
    • diversify tourism products
    • organise more international conferences and exhibitions in Malaysia
  • Strengthen the Malaysia My Second Hone Programme
  • Consider issuing work permits to skilled spouses of the programme participants

ESP26. Profit Levy on Oil Palm

  • currently windfall levy is imposed when the price of CPO exceeds RM2,000 per tonne
  • Increase the threshold to RM2,500 per tonne for Peninsular Malaysia and RM3,000 per tonne for Sabah and Sarawak

ESP25. Carry Back Losses

  • to improve business cash flow
    • current year losses of up to RM100,000
    • carried back to immediate preceding year
    • applicable to all businesses including sole proprietors and partnerships
    • effective for year of assessment 2009 and 2010

ESP24. Accelerated Capital Allowance

  • Expenses on plant and machinery incurred between 10.3.2009 to 31.12.2010 be given Accelerated Capital Allowance - claim within 2 years
  • Expenditure on renovation and refurbishment incurred between 10.3.2009 to 31.12.2010 qualified for Accelerated Capital Allowance  claim within 2 years (currently not allowed).
    • The allowance is capped at RM100,000 for 8 years of assessment per tax payer.
    • the qualifying expenses are
      • general electrical installation
      • lighting
      • gas system
      • water system
      • litchen fittings
      • sanitary fittings
      • door, gate, window, grill and roller shutter
      • fixed partitions
      • flooring
      • wall covering
      • false ceiling and cornices
      • ornamental features or decorations excluding fine art
      • canopy or awning
      • fitting room or changing room
      • children play area
      • recreation room for employee
    • effective  Year of assessment 2009

ESP23. Aviation Industry

  • rebate of 50% on landing charges given for 2 years effective 1.4.2009 to all airlines operate from Malaysia
  • This is to encourage more airlines to operate from Malaysia to attract more tourists.

ESP22. Promoting the Automotive Sector

  • additional allocation of RM200M to Automotive Development Fund
  • establish the Automotive Institute of Malaysia
  • assist in auto-scrapping scheme for PROTON and PERODUA
    • discount of RM5,000 to car owner trade in their 10 years old (at least) car for new Proton or Perodua
    • Government will finance part of the discount

ESP21. Reducing Cost of Doing Business

  • exempt levy payments to the Human Resource Development Fund
    • for 6 months with effect from 1.2.2009
    • for textile, electrical and electronics industries
  • reduce levy rate to 0.5% (currently 1%)
    • for 2 years effective 1.4.2009
    • for all employers

ESP20. Attracting High-Net-Worth and Skilled Individuals

  • New programme to offer permanent resident status for
    • high-net-worth individual bringing more than USD2M for investments or savings in Malaysia
    • highly skilled foreign professionals may also be considered

ESP19. Facilitating Access to Capital Market

  • Bank Negara Malaysia to assist in setting up a Financial Guarantee Institution
    • to provide credit enhancement to companies intend to raise fund from Bond market
    • initilal paid up capital RM1B, subsequently raised to RM2B
    • expected to raise RM15B bonds
  • Securities Commission (SC) to reduce time to market of fund raising by way of
    • rights issues by listed companies don't need approval of SC
    • unlisted companies exempted form seeking SC approval on issuance and offering of equity securities
    • The Code on Take-Overs and Merger 1998 no longer applicable to private limited companies
    • SC only need to be informed of amendments to terms and conditions of bond and sukuk issuances
    • SC only need to be informed of any revisions on terms and conditions of bonds and sukuk for listing on Bursa Malaysia
    • convertible and exchangeable bonds exempted from rating requiements

ESP18. Industry Restructuring Loan Guarantee Scheme

  • Objective
    • assist viable medium and large enterprises to secure financing to
      • mordenise and upgrade business operation ie
        • greater automation
        • increased productivity
        • energy efficiency
        • green technology
  • Fund size: RM5B
  • Guarantee ratio:
    • Mid sized company: Government 80: Financial Institution 20
    • Large enterprises: Government 50: Financial institution 50
  • Guarantee fee: 0.5% on outstanding amount
  • Interest rate: determined by Financial institution
  • Eligibility: Malaysian owned companies
  • Maximum loan tenure: 10 years
  • Maximum financing: RM50M per company
  • Fund availability: until 31.12.2010 or upon full utilisation
  • Participating financial institution
    • all commercial banks
    • all islamic banks
    • Bank Pembangunan Malaysia Berhad
    • SME Bank
    • Bank Simpanan Naional

ESP17. Working Capital Guarantee Scheme

  • SMEs comprise
    • 99% of registered business in Malaysia
    • 56% of employement
    • 32% of GDP
  • Currently CGC under Bank Negara provides Skim Jaminan Usahawan Kecil to fund working capital of SMEs with shareholder equity of less than RM3M
  • Establish a Working Capital Guarantee Scheme for medium sized (shareholder fund less than RM20M) Companies to gain access to working capital financing
    • Fund size - RM5B
    • Guarantee Ratio: Government 80: Financial Institution 20
    • Guarantee fee: 0.5% on outstanding amount
    • Interest rate: determine by financial institution
    • Eligibility:mid sized Malaysian owned company (not subsidiary of company with shareholder fund more than RM20M)
    • Maximum loan tenure: 5 years
    • Availability: Until 31.12.2010 or upon full utilisation
    • Participating bank
      • all commercial bank
      • all islamic bank
      • Bank Pembangunan Malaysia Bhd
      • SME Bank
      • Exim Bank
      • Bank Simpanan Nasional

ESP16. Incentives for Banks to Defer Repayments of Housing Loans

  • Banking institutions have agreed to assist retrenched worker to defer the repayment o their housing loans for one year.
  • Government agrees that interest income related to the deferment be taxed only when such interest is rceived

Esp15. Ensuring Welfare of Retrenched Workers

Increase tax exemption to RM10,000 for each completed year of service (existing RM6,000) on retrenchment benefits

ESP14. Assisting the Less Fortunate

  • RM20M to
    • improve facilities of daycare centres for elderly
    • strengthen management of women shelter homes
    • increase facilities for childcare centres

ESP13 Microcredit Programmes

  • additional RM300M under AgroBank for farmers and agro-based business in rural areas
  • RM50M forTEKUN
  • Establish Fishermen's Welfare Fund managed by Lembaga Kemajuan Ikan Malaysia (LKIM) of RM2M

EPS12. Programmes in Sabah and Sarawak

  • RM1.2B allocated
  • Sarawak
    • expansion of Sibu Airport
    • deepening Miri Port
    • repair and improve infrstructure damaged by floods
    • upgrading school
    • construction of
      • Lawas Training Centr
      • Kota SAmarahan Industrial Estate
      • tourism facilities
  • Sabah
    • building of Giat Mara centres
    • Kota Kinabalu Electricity Transmission System
    • upgrade schools, roads and bridges

ESP11. Basic Amenities in Rural Areas

  • RM230M to increase coverage of electricity and water supply in rural areas, particularly Sabah and Sarawak
  • RM350M for construction of rural road - increase economic activities of small contractors and local workers in rural areas
  • RM500M for PIA and PIAS project (emphasis in Sabah and Sarawak)

ESP10. Improving School Facilities

  • RM1.95B to build and improve facilities in 752 schools (particularly rural area and Sabah and Sarawak)
    • RM300M for government-aided religious schools, national-type Chinese and Tamil schools and mission schools

ESP9. Government Savings Bonds

  • issue syariah-compliant Savings Bond of Rm5B this year to increase income of rakyat
  • maturity of 3 years with annual return of 5% paid quarterly
  • available to all citizens aged 21 and above
  • minimum investment RM1,000, maximum RM50,000

ESP8. Improving Public Infrastructure

Promote greater activities in the construction sector and stimulate domestic demand.

Strategy

  • Accelerate implementation of projcts under 9th Malaysia plan (high local content and multiplier effect, people centric)
    • Project amount RM8.4B
    • Additional RM1.6B to promote investments
  • Additional allocation RM200M to repair and maintain drains and road and improving surrounding of public flats (painting, repairing lifts, improve waste disposal facilities)
  • RM150M for renovation, maintenance and repair of welfare homes, fire and rescue stations and quarters, public toilets in mosque, surau and tourist spots

ESP7. Increasing Home Ownership

  • RM200M to build 6,500 units of rumah mesra rakyat by Syarikat Perumahan Negara Berhad under First Stimulus packages
  • In view of good response from low income group, additional RM200M allocation is made
  • house buyers given tax relief on interest paid on housing loans up to RM10,000/year for 3 years.
    • Detail of the tax relief as follow
      • purchased from developer or third party
      • tax payer is a Malaysian citizen and a resident
      • limited to 1residential house (including flat, apartment or condominium
      • SPA executed between 10.3.2009 and 31.12.2010
      • 3 consecutive years from the first year the housing loan interest is paid
      • Effective Year of Assessment 2009

ESP6. Efforts to Reduce Foreign Workers

 

  • Levy on foreign worker doubled (except contruction, plantation and domestic maids sector) and will be paid by employers and not by workers
  • permatured termination of services - levy refinded on pro-rated basis to employers, employers' bank guarantees will be returned
  • Licences for foreign labour recruitment agencies freezed. Tighten conditions for recruitment of foreign workers by existing agencies

ESP5. PROSPER Graduate Programme

 

  • implemented in June 2005 to assist Bumiputera graduates in retail or distributive business with training, financing and business advisory services. participants offered syariah-based financing of between RM5,000 to RM50,000, repayment period 3 to 7 years.
  • Additional 400 graduates (scope expanded to include those with skill and technical certificates) will benefit from the programme

ESP4. Opportunities for Post-Graduate Education

  • 500 places for studies at PhDs locally, RM20,000 tuition fees and research grants for every student
  • 10,000 places for studies in Masters programme with tuition fees and research grants of RM10,000 per student
  • Implemented by Ministry of Higher Education and select based on merit for studies in public institutions of higher education as well as UNITEN, MMU and UTP.
  • ESP3. Creating Job Opportunities in the Public Sector

  • Government to recruit 63,000 staff
  • 50,000 at support and professional level in the Federal civil service
  • 13,000 for officer on contract basis as follow
    • 4,000 on short term service will minimum SPM qualification at RM1,200 monthly salary
    • 1,000 graduates as school teachers at RM2,000 monthly salary
    • 800 workers for Program Cari under Ministry of Women, Family and Community Development for period of 6 months to a year
    • 1,000 Public Health Assistants for control and prevention of infectious diseases, such as denque
    • 4,500  enunerators in the Department of Statistics to carry out population census
    • 1,700 nurses and health support staff in the Ministry of Health
  • ESP2. Welfare of Retrenched Workers

    Employers employed worker retrenched (including VSC) from 1 July 2008 be given double tax deduction on remuneration paid, condition - shall not exceed RM10,000 per months, limit to 12 months per employee. For worker employed from 10 March 2009 to 31 December 2010.

    Condition for double deduction is as follow:

    • workers must be Malaysian citizen and residents retrenched from 1.7.2008
    • ther termination has been registered with the Director General of Labour, the Ministry of Human esources - includes those under Voluntary Seperation Scheme (VSS) or Mutual Seperation Scheme
    • employment on full time basis
    • remuneration expenses includes wages, salary and allowances not exceed RM10,00 per month for each worker, limit to maximum 12 months
    • for worker appointed between 10.3.009 and 31.12.2010
    • effective from Year of Assessment 2009

    ESP 1. Providing Training and Creating Employment Opportunities

  • Allocation RM700 M
  • Increase number of participants under the Special training and re-training progrmmes (for retrenchd workers) and the Dual National Training Scheme to enhance skills of (currently employed worker)
  • 10,000 trainees under the Skills Training Centres in all states.Increase number of training programmes with the cooperation of industries and related companies (electrical and electronics,welding robotics  and construction)
  • On the  job training for unemployed graduate by Securities Commission and Bank Negara Malaysia for 2 years (in financial sectors)
  • 2,000 training and job placement in GLCs (service sector - outsourcing, aviation, utilities, health and creative multimedia)
  • 2,000 graduates to be trained under attachment programmes with PUNB for 6 months to a year. on completion, qualified trainee will receive financial assistance from PROSPER to venture into business
  • 500 graduates and SMEs will participate in Program Tunas Mekar to encourage graduates to venture into business and add value to existing SMEs.
  • Establish 22 and upgrade 109 existing JodsMalaysia Centres (to facilitates access for worker and employers to obtain job placements, career counselling and information on training opportunities. Organised large scale job carnivals.
  • 2009 SCHEDULE OF MONTHLY TAX DEDUCTIONS (STD)

    Effective 1.1.2009 salary payment, a new monthly tax deduction rate is applicable.

    The new schedule takes into account the change in the individual tax rate as announced in Budget 2009 and is applicable to 2009 remunerations.

    Tax deductions made for previous years’ remunerations of employees paid in 2009 must be based on the old schedule (2004).

    Please Note that tax deductions made for bonus and director’s fees of previous years but paid in 2009 must be based on the new schedule.

    Copy of the old and new PCB schedule can be download from the USEFUL LINK section.

    Thursday, March 5, 2009

    PUBLIC RULING ADDENDUM 5.2.2009

    PERQUISITES FROM EMPLOYMENT
    SECOND ADDENDUM TO PUBLIC RULING NO. 1/2006 (dated 25.2.2009)

    This Addendum provides clarification in relation to tax exemption on perquisites received by an employee pursuant to his employment in respect of:


    (a) innovation or productivity award - paragraph 25C, Schedule 6 of the Income Tax Act 1967 (ITA).


    (b)  i. gift of a new personal computer - Income Tax(Exemption) (No. 4) Order 2008; and
          ii. allowances, subsidised interest and gifts (the relevant Income Tax exemption order yet to be gazetted.)

    Public Ruling 1/2006 Second Addendum - Perquisites from Employment dated 25.2.2009

    LIVING ACCOMODATION BENEFIT PROVIDED FOR THE EMPLOYEE BY THE EMPLOYER ADDENDUM TO PUBLIC RULING NO. 3/2005 (dated 5.2.2009)

    This Addendum provides clarification on the change in the determination of value of living accommodation benefit provided for the employee by the employer.

    Public Ruling No 3/2005 Addendum Living Accommodation Benefit Provided for the Employee by the Employer dated 5.2.2009

    Wednesday, March 4, 2009

    SPECIAL DEDUCTION

     

    Expenditure specifically allowed as a deduction under S34(6) of ITA 1967.

    Refer to Appendix D of Form C 2008 Explanatory Notes/Guidebook for further details on the scope and source of deductibility.

    List below expenses entitled for special deduction:

    1. Equipment for disabled employees; or expenditure on the alteration or renovation of premises for the benefit of disabled employees (Amended with effect from Year of Assessment 2008)


    2. Translation into or publication in the national language of books approved by Dewan Bahasa dan Pustaka


    3. Provision of library facilities or contributions to libraries not exceeding RM100,000


    4. Provision of services, public amenities and contributions to approved charity/community projects pertaining to education, health, housing infrastructure, information and communication technology


    5. Revenue expenditure on the provision and maintenance of child care centre for employees’ benefit


    6. Establishment and management of approved musical or cultural groups

    7. Expenditure incurred in sponsoring any approved local and foreign arts, cultural or heritage activity:
    – not exceeding RM500,000 in aggregate
    – not exceeding RM200,000 for sponsoring foreign arts, cultural or heritage activity

    8. Provision of scholarship to a student receiving full-time instruction leading to an award of diploma/degree (including Masters/Doctorate)

    9. Capital expenditure incurred in obtaining accreditation for a laboratory or as a certification body

    10. Revenue expenditure on scientific research directly undertaken and related to the business

    11. Incorporation expenses

    12. Cost of acquisition of proprietary rights

    13. Corporate debt restructuring expenditure

    14. Information technology-related expenditure

    15. Pre-commencement of business training expenses incurred within one year prior to the commencement of business

    16. Contribution to an approved benevolent fund/trust account in respect of individuals suffering from serious diseases

    17. Provision of practical training in Malaysia to resident individuals who are not own employees

    18. Promotion of exports - registration of patents, trademarks and product licensing overseas

    19. Implementation of RosettaNet

    20. Investment in a venture company

    21. Deduction for gifts of new personal computers to employees (Year of Assessment 2001 - 2003)

    Deduction for gifts of new personal computer and monthly broadband subscription fee to employees (Year of Assessment 2008 - 2010)

    22. Cost of developing website

    23. Investment in an approved food production project

    24. Cost on acquisition of a foreign owned company

    25. Investment in a project of commercialisation of research and development findings

    26. Promotion of exports - hotel accomodation and sustenance provided to potential importers

    27. Expenditure on issuance of Islamic securities

    28. Expenditure on issuance of asset backed securities

    29. Expenditure on issuance of Islamic securities pursuant to Istisna’ principle

    30. Cash contribution and sponsor of a cultural or arts show held in Federal Territory Kuala Lumpur

    31. Investment in an approved food production project

    32. Audit expenditure

    33. Expenditure incurred for the development and compliance of new courses by private higher education institutions

    34. Expenditure for establishment of an Islamic stock broking business

    35. Expenditure incurred for participating in international standardization activities approved by the Department of Standards Malaysia

    36. Expenditure incurred on the provision of infrastructure in relation to its business which is available for public use, subject to the prior approval of the Minister

    37. Deduction for investment in a Bionexus status company 

    38. Deduction for cost of spectrum assignment

    39. Deduction for cost of obtaining Chain of Custody Certification from Malaysian Timber Certification Council

    Monday, March 2, 2009

    Performance of Ringgit

    image

    Indicator

    -  % depreciated, meaning need more RM to buy

    + % appreciated, meaning used less RM to buy

    The ringgit depreciated against the U.S. dollar
    From 1 January to 24 February 2009, the ringgit depreciated by 5.6% against the U.S. dollar. In January, the U.S. dollar broadly strengthened against regional currencies as protracted uncertainties in the international financial markets and the deepening global recession led to the further deleveraging activities by U.S. and global financial institutions. Against other major currencies, the ringgit appreciated against the euro (4.5%), but depreciated against the pound sterling (-6.4%) and the Japanese yen (-0.7%). Against regional currencies, the ringgit depreciated against the Chinese renminbi (-5.4%), the Philippine peso (-4.3%) and the Thai baht (-3.1%) but appreciated against other regional currencies in the range of 0.4% to 13.2%.

    (Extracted from :

    Monetary and Financial Developments January 2009
    Highlights of the Press Release by BNM)

    Sunday, March 1, 2009

    SMALL VALUE ASSETS

    SME with less than 2.5m capital at beginning of YA and not controlled by another company with more than 2.5m capital qualify for:

    Small value asset write-off – ie asset value less than RM1,000 can be claimed in a year with no maximum amount. (Effectice YA 2009)

    For non-SME the limit is RM10,000 total for a year. (also apply to SME before YA 2009)