Malaysia election

[globalcookie]

Originally Posted by byfun

Unless you are a Singapore Malay. You think as a Singaporean non muslim is so easy to apply for Malaysia passport ?

Spore ? We dont even smell any chance or hope ...

Singaporean Malays are not as widely welcome as we may think. But yes, I would think they are more welcome than chinese.

Originally Posted by mictok

i rather go Thailand than Malaysia, thais more friendly towards other ethnic gp.

That's true and also, retirement visa is easy to get.

Meeting the Financial Requirements for a Retirement Visa:
Financial Requirements are as follows:

Bank Account showing THB 800,000
Monthly income of at least THB 65,000
Combination (Bank Account + Income x 12 = THB 800,000)
(ie about S$34,260)

[globalcookie]

Commentary: Hard truths, tough choices ahead after Malaysia’s scrapping of the GST
Malaysia’s move might lead to growth in the long term but it cannot escape a widening fiscal deficit in the short term which has knock-on effects for its competitiveness, says NUS tax expert Simon Poh.


Many around the world have compared the Pakatan Harapan coalition’s win to Brexit and Donald Trump’s equally dramatic victory.

In Malaysia, since that fateful Wednesday, voters have been watching to see if they will deliver on their election promises, chiefly, the pledge to remove the unpopular goods and services tax (GST) introduced by the Barisan Nasional government three years ago.

Pakatan did not disappoint. Within a week, Malaysia’s finance ministry issued a statement that the 6 per cent GST will be set at zero from Jun 1.

This move to demonstrate a quick win might have been swift but came at no surprise, where it went far to shore up support for the new government, and strengthened Malaysians’ buy-in for future government policies, including tax matters.

The Pakatan government’s ability to immediately effect a concrete implementation of an election promise might have been politically motivated but it was necessary to establish credibility and trust with voters.

Advertisement

READ: A commentary on Pakatan Harapan's winning strategy for GE14.

A LEAF FROM THE US PLAYBOOK?

The Pakatan coalition may have taken a leaf from a US playbook. In the United States, Donald Trump promised a major tax reform during his 2016 election campaign that will, among other proposals, slash the US corporate tax rate from 35 per cent to 20 per cent.

After being voted into power, Trump relentlessly pursued this goal and eventually scored victory after securing Congress’ agreement to bring the rate down to 21 per cent, but only after clearing many obstacles including countering the challenge that such a drastic cut would lead to a huge fiscal deficit with the expected plunge in tax revenue.

Still, it was a win for the Republican Party and their scores of supporters.

Some have argued that the corporate tax cut boosts the US economy’s competitiveness, aligning rates with the average among OECD countries, and might lead to job creation in new sectors where companies find it more attractive to base out of the US now.

It is still early days – and first quarter headline economic figures for the US look good but growth has slowed compared to the preceding quarter.

LIKELY DROP IN MALAYSIA’S REVENUES

Turning our attention back to Malaysia, the swift action taken by Dr Mahathir to effectively scrap GST will undoubtedly please local consumers and businesses. However, this move has its challenges.

First, the Malaysia government’s coffers will be reduced significantly. As the second top income source for the government after corporate tax, GST contributed revenue of RM44 billion (US$11 billion) or about 18 per cent of total revenue in 2017, and have been projected to remain so for its fiscal year starting 2018.

With economic growth slowing down to 5.4 per cent in the first quarter of 2018 and current debt crossing the RM1 trillion mark, the situation is even more tenuous as the removal of GST without effective offsetting measures will widen the country’s fiscal deficit.

The reintroduction of sales and services tax (SST) and the recovery of oil prices may provide some compensating relief, but the revenue generated by the SST is modest and expected to generate only about RM30 billion or two-thirds of the GST revenue.

Many have said that Malaysia’s oil money will help the country tide over the fiscal gap. Pakatan had outlined a strategy in their political manifesto, pledging to use profits from state-owned oil company Petronas to set up a sovereign wealth fund but uncertainties surrounding this strategy remain, including the sustainability of high oil prices.

While oil prices have recovered substantially from the low levels in 2015 when GST was first introduced, there is no guarantee that it will remain at current levels.

Analysts have said that reducing the GST will spur consumer spending and control inflation. For an economy where household consumption make up almost 60 per cent of GDP, scrapping GST may eventually boost growth and government coffers, the theory goes.

This notwithstanding, the Malaysian Government will still have to find new ways to broaden the tax base or increase current taxes without putting a dent on the country’s competitiveness meanwhile, as time is needed for economic growth to manifest.

Another strategy could be to review government expenditures. As part of a fiscal reform, the Ministry of Finance may look at ways to reduce government expenditure efficiently and reduce leakages. This is not an easy task as the country has to strike the right balance to prioritise spending on key areas such as defence, education, health and infrastructure – keys to Malaysia’s future growth and security.

This may also have knock-on effects for Malaysia’s cooperative projects with other countries. Of immediate concern to Singapore is the fate of joint projects undertaken by both countries, including the KL-Singapore high-speed rail project and the Johore Bahru-Singapore Rapid Transport System Link.

IMPACT ON COUNTRY’S INTERNATIONAL STANDING

Second, the scrapping of GST when implemented together with other campaign promises that might impact the Malaysian government’s fiscal position, such as a potential move to reintroduce fuel subsidies can adversely affect the country’s sovereign rating as well as inflow of foreign investments.

Whilst GST is unpopular with citizens coping with the rising cost of living, economists, foreign investments and world economic bodies view it positively as a sign of commitment by the country to fiscal reform.

More countries have been turning to GST as a transparent, reliable and sustainable source of revenue for any government, including Singapore.

Reversing this policy by taking the drastic step to effectively abolish GST after its introduction just three years ago without effective alternative plans may affect the country’s overall credit standing and ability to continue attracting foreign investments.

Credit rating house Moody’s highlighted last week that Malaysia’s government debt, which stands at 50.8 per cent of GDP is higher than the median for A-rated peers, and without inflows from GST, will remain elevated, and be negative for its credit rating.

Having taken pains to lay the foundation for the implementation and collection of GST, and as businesses have expended resources to ensure compliance, both government officials and businesses might find it frustrating if there is a future decision to reinstate the collection of GST.

Where the Malaysian government has announced a zero GST rate instead of a complete abolishment of GST, it is not far-fetched to imagine that a more thorough review to fine-tune Malaysia’s taxation system may be in play including consultation with relevant stakeholders.

Options may include reducing the current GST rate to a much lower rate instead of bringing it down to zero, coupled with the measure to mitigate the GST burden borne by lower-income citizens.

The hallmarks of an effective and efficient tax system include a simple, fair, stable, sustainable and competitive tax regime.

In striving for this ultimate goal, governments should refrain from taking short-term populist measures to consolidate or advance its political goals, especially when these are not aligned with the economic goals of the country that include greater competitiveness, progress and fiscal responsibility.

------------------------------

So it's 18% and not 12% in total tax revenue.

Smart to bring it to Zero GST as they can adjust it again when time is ripe.

Hope the Sales & Service Tax doesn't apply across the board but more on higher range items (eg higher end brands, restaurants, etc. At least the average man has a choice of gg for basic or luxury.

[globalcookie]

The Goods and Services Tax (GST) is a value added tax in Malaysia. GST is levied on most transactions in the production process, but is refunded with exception of Blocked Input Tax, to all parties in the chain of production other than the final consumer.

The existing standard rate for GST effective from 1 April 2015 is 6%. Many domestically consumed items such as fresh foods, water and electricity are zero-rated, while some supplies such as education and health services are GST exempted.

The unpopular tax will be reduced to 0% on 1 June 2018.[1] The total removal of GST needs to be tabled and voted in Parliament (Dewan Rakyat).

Background
GST was scheduled to be implemented by the government during the third quarter of 2011,[2] but the implementation was delayed until 1 April 2015. Its purpose is to replace the sales and service tax which has been used in the country for several decades. The government is seeking additional revenue to offset its budget deficit and reduce its dependence on revenue from Petronas, Malaysia's state-owned oil company. The 6% tax will replace a sales-and-service tax of between 5–15%.[3][4]

Zero-rated and exempted supplies
Certain good and services, mainly for domestic use and essential services, are categorized as zero-rated supplies and exempted supplies. Zero-rated supplies are taxable supplies that are taxed at a GST of 0%; exempted supplies are non-taxable supplies that are not subjected to GST. While the net effect on consumers for both zero-rated and exempted supplies is the same, i.e. consumers do not pay any GST, the difference lies in the input tax credit claim by businesses. For zero-rated supplies, while GST is charged at the zero rate to the end consumer, businesses may claim input tax credit on the GST incurred in producing the supplies.[19] On the other hand, for exempted supplies, businesses cannot charge GST to the end consumer, and they are not eligible to claim input tax credit on the GST incurred in producing the supplies.[20]

Examples of zero-rated supplies:[21]
- Agricultural products – paddy, fresh or chilled vegetables, certain provisionally preserved vegetables
- Essential foodstuff – oils, salt, flour, etc.
- Livestocks and livestock supplies or poultry – live animals and unprocessed meat
- Eggs
- Fish – live, fresh, frozen and dried
- First 300 kwh of electricity for domestic use
- Water for domestic users
- Goods supplied to designated areas from Malaysia – Labuan, Langkawi & Tioman
- Exported goods
- Exported services – such as architecture services in connection with land outside Malaysia
- Selected services in Malaysia – such as pilotage, salvage or towage services
International services – such as transport of passengers or goods from a place in Malaysia to a place outside Malaysia
- RON95 petrol, diesel and LPG
- Sale of Residential Property

Services provided by Government which are not considered commercial services, such as permits, licences etc. Services considered commercial are TV advertisement, rental of equipments, rental of multifunction halls etc.
Examples of exempted supplies:[22]

- Financial Services
- Public Transport Services
- Private Education Services
- Tolled Highways or Bridges
- Childcare Services
- Funeral, Burial and Cremation Services
- Private Healthcare Services
- Supplies Made by Societies
- Residential Land or Building
- Agriculture or General Use Land

[globalcookie]

Salaries of Malaysian ministers to be cut by 10%: PM Mahathir
(Updated: 23 May 2018 04:18PM)


PUTRAJAYA: Malaysia will cut the salaries of its Cabinet ministers by 10 per cent with immediate effect, Prime Minister Mahathir Mohamad announced on Wednesday (May 23).

"This shows that we are paying attention to the financial problems of the country," he said.

Mahathir was speaking at a press conference after chairing his first Cabinet meeting at Putrajaya.

He said this measure comes as the new government looks to reduce the government's debt, which is in excess of RM1 trillion (US$250 billion) - about 65 per cent of the nation's Gross Domestic Product (GDP).

Ousted leader Najib Razak had previously said that the debt was below his government's self-imposed ceiling of 55 per cent of GDP.

According to the Malaysian parliament website, the monthly salaries before the pay cut were: Prime minister, RM22,827 (US$5,700); deputy prime minister, RM18,168; minister, RM14,907; deputy minister, RM10,848.

Advertisement

When asked if "higher ranking" civil servants would also receive a pay cut, Mahathir said: “When I was first appointed prime minister way back in in 1981, the first thing I did was to cut the salaries of ministers and the senior civil servants.

"As you know, the senior civil servants are better paid than the ministers, it is up to them if they feel that they want to contribute towards lessening the cost of running this country … they can do so, but we are not forcing them.”

Under the previous government led by the Barisan Nasional coalition, former prime minister Najib had promised civil servants a salary increase from Jul 1.

Mahathir said his government was looking into the matter.

"That is a promise made by the opposition now," he said. "They have not won the election; we are not bound to their promises.

"Nevertheless, we will look at it in a very positive way. Where they deserve to be given some extra allowance, we will do so."

The number of civil servants will also be reduced so as to cut government spending. Mahathir said the government would cease the recruitment of political appointees and re-engage those in critical posts and with low salaries.

He said it was unnecessary to have political appointees as they were appointed merely to accommodate the supporters of the previous government.

He explained that about 17,000 contract officers were political appointees and some among them had become permanent staff.

"Those with low income, we will engage them but first we will terminate (their service)," he said, giving an assurance that low income employees would not be victimised.

Mahathir added that some projects committed to by the old government may be dropped. Regarding the Singapore-Kuala Lumpur high-speed rail link, he said the government will decide “very soon” on whether to continue with the project.


Responding to questions from Channel NewsAsia on the private search contract for missing Malaysia Airlines flight MH370, Mahathir said the government will review the contract and cancel it if necessary.

The prime minister also added that the Goods and Service Tax (GST) will be removed no later Jun 1 as previously announced.

On transportation, Mahathir said petrol prices at the pump will remain the same even though global crude oil prices have reached more than US$70 per barrel.

Following his announcement, the price for RON95 petrol remained unchanged at RM2.20 per litre, with RON97 at RM2.47 per litre and diesel at RM2.18 per litre.

The fuel prices have remained unchanged for more than a month.

Mahathir said Pakatan Harapan had promised to stabilise fuel prices and reintroduce fuel subsidies to targeted groups.

"Our policy is not to have weekly changes in the price according to the market," he said.

He also announced that the Land Public Transport Commission (SPAD) will be absorbed into the Transport Ministry.

Mahathir also spoke about the disbandment of other government-linked agencies and institutions.

These include the Special Affairs Department (Jasa), Malaysian Global Innovation and Creativity Centre (MaGIC), National Council of Professors (MPN) and Federal Village Development and Security Committee (JKKKP).

"Most of these institutions are not actually part of the government, (they are) supposed to advise the government. All these things will be disbanded.

"We don't need their intelligence; I think we are quite intelligent ourselves," he said.

----------------

Did Dr M, who is paid 1/15 (or lesser) the salary of LHL, have to kowtow to LHL the highest paid PM in the world?

[hkh]

This is called "Singapore Got talent"........

[streetsmart73]

----------------

Did Dr M, who is paid 1/15 (or lesser) the salary of LHL, have to kowtow to LHL the highest paid PM in the world?[/QUOTE]

simple mah; who went across to see who first

[lenghan]

Originally Posted by streetsmart73

----------------

Did Dr M, who is paid 1/15 (or lesser) the salary of LHL, have to kowtow to LHL the highest paid PM in the world?

simple mah; who went across to see who first[/QUOTE]

Lee Hsien Loong, Prime Minister of Singapore. Mr. Lee makes $2.2 million a year ($147,000 a month, $7,350 a day). Mr. Lee’s father, who jump started Singapore’s economics, was Prime Minister before him. His wages are the highest among all the world leaders, and he deems it to be fair and realistic.” Singapore runs of a budget of $53 million annually. Mr Lee actually used to be paid more, but when citizens complained, the amount was reduced by more than one-third. Singapore’s minimum salary is not limited by law, but it is approximately $1,000 per month.
Dr M only makes US5.7K a month!!!!!

[therat]

He reduce his salary after they lost AH GRC.
Not bcoz citizens complain

Sent from my LG-H870DS using Tapatalk

[lenghan]

His daily salary is more then Dr. M's monthly salary

[globalcookie]

Not happy ah? You all Ever consider applying for Malaysia passport?

Anyway, who said about being paid equivalent to CEOs or they won't be respected?

Highest paid PM has to kuai kuai eat humble pie go KL and meet the world's oldest PM who is probably paid less than Singapore PM's chief clerk? Why not just send any back benchers will do? Afterall, MPs are paid $15k/mth, about double of what Dr M is paid...

David Marshall said (in 2011 or earlier)
“You know $96,000 a month for a Prime Minister and $60,000 a month for a minister. What the hell do you do with all that money? You can’t eat it! What do you do with it? Your children don’t need all that money.”

“I never earned $60,000 a month or $90,000 a month. When I was Chief Minister, I earned $8,000 a month. Look, what is happening today is we are encouraged to and are becoming worshippers of the Golden Calf.

He was paid $3,500/mth as Chief Minister, before Singapore's independence.