Posted by Kim Yap Lau > 2013-10-25 18:19 | Report Abuse

Goods and Services Tax

Government to introduce Goods and Services Tax (GST) at 6% starting April 1, 2015. Sales and Services Tax to be abolished.

Items to be exempted from GST - rice, sugar, salt, flour, cooking oil, dhal, chilli, herbs, salted fish, cincalok, budu, belacan, piped water, electricity (for first 200 for domestic use), government services, public transport (bus, LRT, ferry, toll) sales and purchase of property or rental of property.

After the implementation of GST, a one off RM300 to recipients of BR1M and a reduction in personal income tax by 3%, so that up to 300,000 taxpayers will be exempt from paying income tax. Generally, those with family and earning RM4,000 and below need no longer pay income tax.

After GST, a one-off cash payment of RM300 to be made to those now receiving BR1M help.

Counter: Censoft

Posted by Kim Yap Lau > 2013-10-25 18:20 | Report Abuse

High-speed broadband

Second phase of the High-Speed Broadband (HSBB) project in collaboration with the private sector involving RM1.8 billion investment to expand coverage to major towns. Internet speed to be increased to 10 Mbps.

RM1.5 bil to build 1,000 new telecommunications tower over three years. RM850 mil to build new undersea cable to improve internet in East Malaysia over 3 years.

Counter : Maxis

Posted by Kim Yap Lau > 2013-10-25 18:22 | Report Abuse

Subsidies reduction

Sugar subsidy of 34 sen to be abolished tomorrow.

Government to allocate RM47 bil for subsidies in 2013 and 53% or RM24.8 bil went to petrolem products that benefitted all, even the rich, the businessmen and foreigners.

Najib cites the recent petrol price subsidy cut as an example of this structural changes to come for subsidies, which make up to a fifth of the total national budget.

Counter : MSM

Posted by Kim Yap Lau > 2013-10-25 18:26 | Report Abuse

Increase of Real Property Gain Tax (RPGT)

RPGT increased as follow:

- 30% (first 3 years)
- 20% (fourth year)
- 15% (fifth year)
- For foreigners: 30% for all five years

Minimum property purchase price for foreigners to be doubled from RM500,000 to RM1 mil.

Counter : Gamuda, Kimlun, PJDEV, Scientx, etc

Posted by iafx > 2013-10-25 18:29 | Report Abuse

watchout healthcare tourism:

http://www.thestar.com.my/News/Community/2013/10/18/Shining-a-light-on-healthcare-Expo-aims-to-offer-insights-on-medical-travel-in-Malaysia.aspx

http://www.thestar.com.my/Business/Business-News/2013/09/17/Najib-Health-tourism-in-Malaysia-generated-RM600m-in-revenue-last-year.aspx

http://www.theborneopost.com/2013/10/22/malaysia-continues-to-promote-healthcare-services-muhyiddin/

healthcare services r exempted from GST.

Posted by Kim Yap Lau > 2013-10-25 18:31 | Report Abuse

Tax incentives

To help the employer's burden of implementing of minimum wage scheme - RM900 in Peninsula Malaysia and RM800 in Sabah and Sarawak, the government will introduce extra tax incentives for whole of 2014.

This is to help employers to top up salaries of their employees to the minimum level.

Tax exemption of RM2,000 for income period of 2013 for those earning up to RM8,000 a month.

Corporate tax rate cut by 1 percentage point from 25% to 24%, for SMEs reduction from 20% to 19% from year of assessment 2016.

Cooperative tax rate cut by 1 to 2 percentage points from year of assessment 2015.

Counter : All big revenue counter

Posted by 9696 > 2013-10-25 18:37 | Report Abuse

Any affect on property stock?

Posted by iafx > 2013-10-25 18:42 | Report Abuse

DIBS prohibited

Posted by izoklse > 2013-10-25 18:44 | Report Abuse

property will kena kaw kaw. Next week bye bye to Property counter and also company related to SUGAR.

Posted by abdulhalim > 2013-10-25 18:47 | Report Abuse

izolklse@ counter mana leh enter next week....tq

Posted by iafx > 2013-10-25 18:47 | Report Abuse

for those not building high rise (apartment, condo), with resilient income and foreign projects (including PR1MA) should be fine.

Posted by sephiroth > 2013-10-25 18:50 | Report Abuse

have lots of bullet ready to sapu cheap property counters
tp to grab mahsing 2.00 and below, pjdev 1.00, gob 0.70 and below

Posted by simonfish1 > 2013-10-25 18:53 | Report Abuse

property counter will not died, property always is number 1 in the world. I have 10 lots for tambun counter. Hopefuly property counter price low & low, then i will enter to buy more.

Posted by greatinvestor > 2013-10-25 18:56 | Report Abuse

Agree..

Posted by izoklse > 2013-10-25 19:00 | Report Abuse

high rise luxuries condo and apartment will kena kaw kaw. Govt decided that foreigner only can but property 1 million above. This is will cause property developer now pening kepala because we all know those who buying property above 500k before this is a lot of them come from foreigner from singapore,hongkong,china,korea,taiwan and now the limit increase from 500k to 1 million will cause foreigner to think twice before buying any property in malaysia and those property developer who developed already those house can not sell their property now. sale will be impacted.

Posted by KC Loh > 2013-10-25 19:00 | Report Abuse

there will be a reaction naturally on property counters, but in long run the well managed ones and that with current large land bank holdings will still prosper due to demand! the only reason the RPGT came is cool down speculations only and the inability for rakyat to have access to affordable properties!

Posted by CityTrader > 2013-10-25 19:02 | Report Abuse

septhiroth, how about E&O, will it be affected by the Budget?? TQ

Posted by ktrader > 2013-10-25 19:05 | Report Abuse

the rpgt thingy factored in already ...expect property ctrs to falll kaw kaw next Monday?...I don't think so...

Posted by Fortunebull > 2013-10-25 19:08 | Report Abuse

Not to touch property counters until clear direction! Personally 50% of property buyers are speculators! Definitely affect high end condos sales! But wont affect at all at 1st time buyer buying for own use! Bettter wait and see!

Posted by sephiroth > 2013-10-25 19:10 | Report Abuse

CityTrader, e&o mostly sell high end properties, now that foreigners can only buy properties RM1m and above (previously RM500k), definitely will affect e&o's revenue, e&o might still slightly above RM2.00

Posted by Fortunebull > 2013-10-25 19:13 | Report Abuse

Already sold my last property counter UEMS today! Kim Yap Lau! Very good and sharp observations! Agree all except on property counters! Best to avoid until 3 2nd half next year!

Posted by izoklse > 2013-10-25 19:15 | Report Abuse

MSM Confirm big drop next week. govt decide to reduce subsidies given to sugar and reduce 34 cent which is one of the biggest reduction in sugar subsidies.But in contra the price of sugar is more expensive now and might increase sale profit or reduce profit of MSM.But i think it will increase profit as sugar is on of the main ingredient in malaysian food. for long run MSM gonna get benefit.

Posted by sephiroth > 2013-10-25 19:16 | Report Abuse

this rpgt stuff mostly price in, drop in share price of property stocks will cap at 10% and below, mkt expect rpgt for 2nd yr to increase to 30% but now change to 3rd year PLUS corporate tax reduce by 1% is a great plus to all companies net profit

Posted by Fortunebull > 2013-10-25 19:18 | Report Abuse

GST not that bad! Worse fear price will shot up not there! If price shot up, most probable due to profiteering by business proprietors! Censof, myeg and ghlsys will be clear counters to bet on going forward! GST theme play will be hot beside oil and gas!

Posted by Kim Yap Lau > 2013-10-25 19:21 | Report Abuse

HealthAdditional 6,400 nurses in government hospitals.RM3.3 bil for medication and medical equipment.

Counter : Hovid, Kpj, Stemlife

Posted by TESSA > 2013-10-25 19:22 | Report Abuse

fortunebull, i agree with you on that! :)

Posted by KY Lau > 2013-10-25 19:26 | Report Abuse

Geen Lifestyle

Malaysian Green Foundation will be  established to promote and enhance use of green technology by the corporate sector and the general public. For this, a launching grant of RM15 million will be provided to the Foundation.

Counter : Jadi

Posted by Fortunebull > 2013-10-25 19:28 | Report Abuse

Sephiroth! Not really price in! Don't forget loan requirements burden to buyers! Especially on their 2nd, 3rd, 4th or 5th properties! Rich people will think twice not like before! May even switch to foreign market like Australia, Singapore or Hong Kong!

Posted by sephiroth > 2013-10-25 19:31 | Report Abuse

either way is fine with me, i can collect really cheap property stocks, in the long run, property demand will far exceed property supply

Posted by Fortunebull > 2013-10-25 19:32 | Report Abuse

Kim Yap Lau! Agree on Hovid but no so agree with KPJ and Stemlife! However, need to to homework first! Maybe you right!

Posted by CityTrader > 2013-10-25 19:32 | Report Abuse

TQ Sephiroth & Fortunebull & oithers as well to provide good info..

Posted by KY Lau > 2013-10-25 19:35 | Report Abuse

Fortunebull, open discussion, any idea is most welcome, to made everyone in this forum can benefit from it.

Posted by Fortunebull > 2013-10-25 19:40 | Report Abuse

I like this Kim Yap Lau! Know how to understand budget and what counter to look for! Very good!

Posted by bliss > 2013-10-25 19:40 | Report Abuse

what abt uoa?

Posted by anzhen > 2013-10-25 20:06 | Report Abuse

Hmm....do you think brahims will be benefit from the 2014 budget with the government push in tourism ?

Posted by Fortunebull > 2013-10-25 20:09 | Report Abuse

More flights more profit for Brahims!

Posted by KY Lau > 2013-10-25 20:21 | Report Abuse

Najib said Valuecap, which invests in listed companies, would allocate RM1 billion to invest in companies that score high on the Environmental, Social and Governance Index (ESG), which will be introduced to raise the profile of listed companies which have high socially responsible practices.

Posted by chinsing1987 > 2013-10-25 20:34 | Report Abuse

Thank you so much Kim Yap Lau!

Posted by izoklse > 2013-10-25 21:02 | Report Abuse

Economic Report 2013/2014: Federal Govt revenue to increase to RM224.09bil in 2014

Total Federal Government revenue is expected to grow 6% to RM220.42bil in 2013 or account for 22.3% of GDP as it expects to collect more taxes from companies and individuals.

For 2014, total revenue is expected to rise 1.7% to RM224.094bil and account for 21.2% of GDP.

Despite the projected increase in revenue, the Government vows to adhere to its self-imposed guiding principles to ensure healthy public finances, including an operating surplus, reduction in fiscal deficit and a balanced budget by 2020.

The target is to reduce the fiscal deficit to around 3% by 2013 and ensure the Federal Government debt does not exceed 55% of the gross domestic product (GDP), according to report.

“Spending will be prudent and for productive purposes,” the report said, pointing out the Government had resumed subsidy rationalisation of sugar and fuel.

On-going measures to improve government finances will continue to meet near-term fiscal goals.

“However, to ensure sound public finances over the longer term, structural reforms and a more strategic management of fiscal resources are imperative,” it said.

The Government expects the budget deficit to be further reduced from 4.5% of GDP in 2012 to 4.0% in 2013, while policies that boost economic growth will continue. For 2014, it expects the deficit to be reduced further to 3.5%.

GOVERNMENT REVENUE IN 2013 AND 2014

Federal Government revenue is expected to grow 6% to RM220.42bil in 2013 or account for 22.3% of GDP. This figure is expected to rise 1.7% to RM224.094bil in 2014.

The revenue comprises of tax revenue and non-tax revenue. Tax revenue comprises of direct tax, including from companies, petroleum income tax and individual tax. Indirect tax comprises excise duties and sales tax. Non-tax revenue includes licences and permits and investment income.

TAX REVENUE

Tax revenue provides a large chunk of the Government revenue, accounting for 74.2% in 2013 and 76.7% in 2014.

Tax revenue is expected to rise 7.8% from RM151.643bil in 2012 to RM163.506bil in 2013 and increase 5.2% to RM171.970bil in 2014.

DIRECT TAX

Direct tax is a component of tax revenue and it is expected to rise 8.6% from RM116.937bil in 2012 to RM127.020bil in 2013 and increase by 4.8% to RM133.148bil.

The largest chunk of direct tax comes from companies, which reported a 17.8% increase from RM51.288bil in 2012 to RM60.431bil in 2013 and rising 8.8% to RM65.729bil in 2014.

The Government also expects to collect more taxes from individuals, rising 15.0% from RM22.97bil in 2012 to RM26.43bil in 2013 and increasing 8.8% to RM28.746bil in 2014.

The total number of registered taxpayers was 7.6 million at end-July 2013 from 7.3 million in 2012. Of this 92.6% of 7.1 million wee individual taxpayers while 7.2% or 549,359 were companies.

It should be noted the Government projects petroleum income tax to decline further from RM33.93bil in 2012 to RM30.51bil in 2013 and to RM28.27bil in 2014.

The reduction in the petroleum income tax is due to lower export prices despite higher production and the appreciation of the US dollar.

The report said although the external environment continues to be mired in uncertainties, receipts from stamp duties are expected to rise 11.1% to RM6.2bil in 2013 from RM5.6bil in 2012, underpinned by strong business confidence in the economy.

Revenue from real property gains tax (RPGT) is expected to be RM653mil in 2013 from RM608mil in 2012 due to the higher value of transactions, despite the upward revision in RPGT rates from Jan 1, 2013 to curb speculative activities,

The report noted that receipts from other direct taxes, including withholding tax (RM2.3bil) is expected to remain firm.

INDIRECT TAX

The Government expects higher collection from indirect taxes, rising 5.1% from RM34.706bil in 2012 to RM36.486bil in 2013 and increasing 6.4% to RM38.822bil in 2014. Indirect taxes are expected to account for 16.6% to total revenue.

Of the indirect taxes, excise duties are expected to increase 4.4% from RM12.187bil in 2012 to RM12.728bil in 2013 and to RM13.442bil in 2014.

Sales tax is expected to increase by 7.4% in RM8.49bil in 2012 to RM10.199bil in 2013 and by 7.7% to RM10.98bil in 2014.

Receipts from stamp duties are expected to be robust, rising 11.1% to RM6.2bil in 2013 from RM5.6bil in 2012.

NON-TAX REVENUE

Non-tax revenue is expected to remain stable at RM56.916bil in 2013, up 1.1% from RM56.270bil in 2012 and declining 8.4% in 2014 to RM52.124bil.

The non-tax revenue comprises of licences and permits and investment income. Licences and permits are expected to see a decline to RM13.468bil in 2013, or down 0.8% from 2012’s RM13.570bil and slip 2.4% to RM13.149bil in 2014.

Investment income is expected to decline 4.6% to RM35.062bil in 2013 from the RM36.736bil in 2012 and fall 8.5% to RM32.065bil in 2014.