The week at a glance 6 November 2016

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ta04434Sabah & Sarawak

Lower tax rates on higher chargeable income

Companies will be able to enjoy lower taxation rates based on certain percentage of increase in chargeable income for next year and the year after. KPMG Tax Services Sdn Bhd (KPMG) tax director Tang Yeth Fong disclosed that companies which generated higher percentage of chargeable income as compared to the preceding year assessment will be entitled for reduction in income tax rate of between one and four percentage point.

 

Press Metal’s 9M16 within expectations, analysts maintain cheerful outlook

Press Metal Bhd’s first nine months of 2016 (9M16) results were well within analysts’ expectations and as such, they are maintaining their positive outlook on the group.

As indicated in a filing on Bursa Malaysia, Press Metal’s nine months ended September 30, 2016 profit for the period amounted to RM444.1 million, a drastic increase from the year earlier period of RM119.8 million.

 

Firms within FIZ warned to check on GST registration eligibility

Companies based within Free Industrial Zones (FIZ) are warned to check on their eligibility for Goods and Services Tax (GST) registration with effect from the proposed amendments to sections 161 and 162 of the GST Act 2014. During a KPMG Tax Seminar regarding the 2017 Budget proposals, the proposed amendments to sections 161 and 162 of the GST Act 2014 and its resulting effects to companies within FIZ and Free Commercial Zones (FCZ) were discussed by Yap Choon Ling, associate director of KPMG Malaysia’s indirect tax division.

 

Income tax adjustment set to benefit the younger generation, working mothers

Significant changes are in store for relief under the 1967 Income Tax Act as several adjustments and additions from Budget 2017 that will be effective beginning year of assessment (YA) 2017. During the Inland Revenue Board’s (IRB) National Tax Seminar, one key subject concentrated on was the upcoming adjustments and additions to Income Tax Act 1967 which was spearheaded by Nor’aini Jaafar, director of Tax Policy Department from IRB.

 

Coastal Contracts’ forgotten Indonesian JV negatively percieved

Analysts negatively percieve Coastal Contracts Bhd’s (Coastal) news of its memorandum of understanding (MOU) for a proposed Indonesian joint-venture has been left unconsummated. The announcement was made in a recent filling with Bursa Malaysia where Coastal detailed that the expiration of the MOU with PT Jaya Samudra Karunia Internasional (JSK), PT Jaya Samudra Karunia Gas (JSK Gas), and Yudha Kurnia Tanos, expired on October 28.

 

Sarawak property market remains active, underpinned by steady demand

The property market in Sarawak still has room to grow, supported by steady demand for houses despite the lacklustre sentiment for the sector. Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman Dr Christopher Ngui believed the property market is holding up steadily despite the challenging economic environment.

 

National

Malaysia to have new code of conduct for wholesale money, forex markets

A new Code of Conduct for Malaysia Wholesale Money and Foreign Exchange (forex) markets, which will set out clear principles and standards to be observed by market participants, are expected to be launched in January 2017, said Bank Negara Malaysia (BNM). Its Governor, Datuk Muhammad Ibrahim, said BNM had launched a consultation paper on the new code.

 

SC: malaysia’s capital market remains resilient

Malaysia’s capital market expanded to RM2.85 trillion as at September this year from RM2.82 trillion in December last year and remains resilient despite the volatility in global markets, says the Securities Commission Malaysia. Its deputy chief executive Datuk Ahmad Fairuz Zainol Abidin said the equity market capitalisation as at September stood at RM1.68 trillion whereas the bond and sukuk market amounted to RM1.17 trillion.

 

Neutral on banking sector after China Construction bank news

Analysts at AmInvestment Bank Bhd (AmInvestment Bank) remain neutral on the local banking sector outlook following the grant of a commercial banking license to China Construction Bank (Malaysia) Bhd (CCB Malaysia), a wholly owned subsidiary of China Construction Bank Corporation Ltd (CCB). This marks the third China Commercial Bank in Malaysia after Bank of China and Industrial and Commercial Bank of China (ICBC). Both banks have presence in Sarawak.

 

SC unveils 6 P2P financing platform operators for SMEs

The Securities Commission Malaysia (SC) has introduced six registered Peer-to-Peer (P2P) financing platform operators in Malaysia to widen funding avenues for small and medium enterprises (SMEs). The six operators – B2B FinPAL, Kapital, FundedByMe Malaysia, ManagePay Services, Modalku Ventures and Peoplender – are expected to be fully operational in 2017, said SC chairman Tan Sri Ranjit Ajit Singh.

 

Malaysia’s January-September total trade valued at rm1.077 trillion

Malaysia’s total trade during the period of January-September 2016 rose marginally higher by 0.6 per cent to RM1.077 trillion compared with the same period in 2015, supported by exports in manufactured and agricultural goods. The International Trade and Industry Ministry (MITI) in a statement said Malaysia also recorded a trade surplus of RM59.77 billion compared with RM60.93 billion for the same period of 2015.