Assalamualaikum w.b.t.,

Hidup di dunia yang sementara ini banyak mengabui mata kita tentang matlamat kehidupan yang sebenarnya. Kita semakin terdesak dengan himpitan kehidupan dan berlumba-lumba untuk mencari kehidupan yang lazimnya lebih menampakkan keduniaa semata-mata.
Apakah ada di antara pelaburan yang semakin hari semakin kurang diberikan tumpuan? Namun, apakah kita menidakkan keperluan yang perlu kita sediakan di dunia bagi persediaan akhirat? Bagaimanakah pula pelaburan di dunia yang wajar dilakukan untuk persediaan akhirat kita? Wajar rasanya kita sama-sama bincangkan dan jadikan maklumat bersama ini sebagai panduan kita merentasi dunia untuk menempah tempat yang selesa di akhirat kelak, insyaallah.

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Friday, September 30, 2011

EPF.... lets put a point here..???

Assalamualaikum w.b.t.,

Refering to below article (red color highlighted), why this happened? After retirement, EPF saving not enough for your future needs?

If we don't have extra  money to make additional saving or investing then surely we stuck in future living depression.

Hidden voice from EPF said, actually EPF can give dividend more than 5% or reaching beyond 10%  yearly, but why until now we only received 5% or below??? Do ghost hand chained EPF to give more benefit to their depositors or profit missing in magical action of ghostsssss??? I believe majority of EPF depositors are from private sectors.

Do you believe, if our income tax is lower than we can save more? I believe so...

But what happen then, if income tax not even being reduced but another tax is introduced such GST bundle with so called "subsidy reduction programme" and couple with goods/service  price hike up? How much can you save monthly for your retirement?

I still blind with so called high earn income.... what I will still prefer lower tax and lower good/service price and lower inflation. It will save me even better then uncertain high earn income... since the paper money is still just paper...

Wallah hu 'alam.

Thursday September 29, 2011

Higher retirement age will benefit the economy


QUITE a few Malaysians would have pumped their fists into the air upon hearing of the plans to increase the retirement age of private sector workers.
That group would certainly be those thinking that their working life was coming close to an end and the prospect of having five or more extra years added into their careers and earning potential now would certainly be a windfall for them.
The fact remains that retiring at 55 in today's world seems a waste. The mortality age for Malaysians has risen quite a bit from when the Employees Provident Fund (EPF) Act 1951 was first passed. At that time many Malaysians were not expected to live past 55.
The retirement age in Indonesia and Thailand is 60 and any high-income economy, in which Malaysia aspires to be, certainly has a retirement age beyond 60.
Today, with better medicine, diet and exercise, the average life of people has increased. A longer life based on a finite and short working career certainly would put a strain on the finances of many a retiree.
The EPF says 73% of contributors have less than RM50,000 saved while only 17% have over RM100,000 at the point of their retirement. Add in the ever-growing costlier living costs, that amount of money will not last long and many do end up broke just a few years after retirement.
Another reason why the EPF might suggest an extension of the retirement age is that Malaysia is now a greying country. Baby boomers will retire in ever increasing numbers and the money will be withdrawn from the EPF and that will be to the detriment of the current group of savers and the overall equities and securities markets where the fund is a major investor.
Also, the more workers a country retains as the population ages the more the benefit to the economy.
But the decision to increase the retirement age in my estimation will boost the economy in the longer term.
Extending the retirement age will act as a stimulus for the economy and that will be from a group of people with the highest earning power too.
Based on life cycle hypotheses, people tend to spend more during the early age of their careers and save more as retirement approaches. Now that they know retirement is postponed for five more years at least, those people who might be thinking of building a nest egg have the opportunity to spend.
Spending more now will certainly be a boost to domestic consumption which is a main driver of growth.
People will now look to buy a new house, upgrade their cars, do some renovations to their homes or spend on whatever else they want on now knowing that they have the flexibility without worrying about the end of their careers.
Extending the retirement age will not mean people cannot retire early. Anyone can retire today if they wish to but surveys from the United States have shown that people will choose to retire later if the retirement age is extended.
Should the retirement age of government employees be increased to 60, it will be illogical to have separate retirement ages for the public and private sectors.
It will mean having a person at a top salary bracket serve an extra five years instead of giving that person a golden handshake, pay him 50% of his salary for the rest of his life, and replace him with another person at the salary of the retired person. There are also other benefits the Government can save on such as healthcare bills.
Young people who might be worried about not moving up the ladder or getting a job should not. Should the economic transformation programme gain traction, that will mean 3.3 million new jobs over the next 10 years.
Add in the fact we are technically at full employment and have more than 2.3 million legal and illegal foreign workers at least, jobs will be there as the economy grows.
Company CEOs may think that extending the retirement age will mean they are stuck with the deadwood in the organisation.
The fact, however, is deadwood will inevitably exist in every organisation. If CEOs can miraculously be given one chance to remove all unproductive workers, you can bet others will emerge at later years. It's best that talent management is exercised to ensure such workers are minimised at all times.
Deputy news editor Jagdev Singh Sidhu thinks those who have planned for their retirement will now look to spend a bit more.

Monday, September 12, 2011

Call for ‘lower corporate, personal tax’


Move can make M’sia more attractive and competitive

PETALING JAYA: The Government should consider lowering both the corporate and personal income tax rates to enhance Malaysia's attractiveness and competitiveness, according to tax consultants.

PricewaterhouseCoopers Taxation Services Sdn Bhd (PwC) tax leader and senior executive director Khoo Chuan Keat said the corporate tax rate could be “reduced gradually over the next few years to 20%”.
As for personal tax bracket, Khoo said it should be aligned to that of corporate tax and the income tax rates should also be widened considerably to be more competitive.
“As the reduction of income tax rates will inevitably reduce revenue collection by the Government, alternative sources of revenue have to be derived. One obvious alternative is to broaden the tax base by boldly implementing the long debated Goods and Services Tax (GST),” he told StarBiz.

Khoo said lowering corporate and personal income tax rates would effectively increase shareholder value of corporates and disposable income of individuals.
The tax savings generated, if channelled to business expansion and additional capital investments, would help to spur and stimulate economic growth.
“A lower corporate tax rate which contributes to a lower cost of doing business could also help attract foreign direct investments into our country. As the country continues to engage in the war for talent, a more attractive personal income tax rate would be one of the factors that could help attract foreign talent and retain local talent,” he said.
Meanwhile, KPMG Malaysia executive director, head of tax Khoo Chin Guan said there was an increasing trend globally for governments to reduce income tax rates, and to compensate for the resultant shortfall in tax collection, some governments had introduced new consumption tax namely Value Added Tax (VAT).
“In the immediate future, Malaysia will have to follow suit in order to remain competitive in the eyes of the global business community,” Chin Guan said.
He said tax remained an important factor in the evaluation process for investors particularly in these challenging economic times when identifying location for their investments although it might not necessarily be the only criterion.
“In the case of Malaysia, as it competes with other jurisdictions for foreign investments, while the Government appears to have subscribed to the policy measures of reducing the income tax rates (both corporate and personal) and widening the tax base through the introduction of GST (similar to VAT) to cushion the resultant shortfall in the income tax collection, there is still a need for the Government to make an announcement as to the definite date of implementation of GST in Malaysia so as to provide certainty to the business community,” Chin Guan said.
However, he said he would be “pleasantly surprised” if there was a proposal to reduce the tax rates in the upcoming Budget 2012 without a corresponding announcement on the date of implementation of GST and its proposed rate considering the Government's intention to reduce its budget deficit to below 5.4% of gross domestic products in subsequent years.
Malaysia's current corporate tax of 25% is in the middle range compared with countries in the region. Hong Kong's corporate tax stood at 16.5%, Singapore (17%), while Thailand, the Philippines, Australia and New Zealand are at 30%.
“Even though our corporate tax rate has been reduced over the years (from 30% in 1995 to 25% in 2009), the rate of reduction is not as significant as the other countries in the region. For example, Malaysia used to rank favourably in 1995, but in 2010, countries such as China and Indonesia have caught up. Additionally, countries such as Singapore and Taiwan have dropped their tax rates to as low as 17%,” Chuan Keat said.
He added that at the first glance, Malaysia was neither most competitive nor the least competitive in the region. “Malaysia is on par with countries such as Vietnam, China and Indonesia (at 25%).”
Malaysia offers a wide range of tax incentives which plays an important role in bringing down the effective tax rate. However, other countries in the region are also offering competitive tax incentive packages. Hence, countries with lower headline tax rates would still seem to have an advantage over Malaysia.
On personal income tax, PwC's Khoo said Malaysia's top personal tax rate of 26% was considered mid-range in the region.
However, due to the tightness of the tax brackets where the top rate of 26% is reached at a relatively low level of income, Malaysia could appear to be less competitive in comparison with some countries, including China.

Thursday, September 8, 2011

Access housing loan on net income???

How can we elaborate of this issue?

My understanding:

Net income = gross income - (income tax + EPF)

Why need to access based on net income? I believe this issue due to income tax that being paid by most of people work in private sector is much-much higher and their net income become much-much lesser. Most people  work in private sector only being paid for 10 to 11 month only. The balance of one or two month is for income tax comparing to civil servant only pay tax between zero to less one month if considering at the same gross income of 12 month.

Do you believe this statement? Then  please do your own calculation and check your self. You can see if civil servant apply the loan, their interest rate will much lower than public sector worker due to ability of paying back the loan and security of jobs. 

So you can judge your self how fair is our economy that based on capitalist systems. Bring zakat into our economy mainstream than it will fair everybody. Our beloved country is Islamic country but the ruling government do they really applied the Islam management way? 

Time to change will come soon for better future. Lets make a change once there is still a hope. Lets pray for the best of Malaysia future. Hope Allah s.w.t. will bless for the best for Malaysia. Ameen.


Thursday September 8, 2011

Bank Negara move can affect housing demand


GEORGE TOWN: Slower affordable property launches and less demand for such properties are some of the consequences of the proposed move by Bank Negara to assess housing loans on net income rather than on gross income.
Registered and chartered valuer C.A. Lim & Co proprietor Lim Chien Aun told StarBiz that there would be an impact on the demand for affordable properties priced between RM100,000 and RM300,000.
The proposed move to assess the eligibility for housing loans on a net income basis would lower affordability by 14% to 37%, said a recent RHB Research Institute report.
“We will definitely see slower take-up rate from the low and middle-income segments, resulting in the long run slower delivery of affordable housing projects.
“Ordinary wage earners will be affected more than the high-income segment.
“Unless the Government is willing to lower the price of affordable housing in the country, the proposed move, if implemented, may not support Government's objective of promoting affordable housing projects,” he said.
Chartered valuer and property consultant Azmi & Co (Penang) Sdn Bhd managing director Chandra Mohan Krishnan said there would be a slowdown in the delivery of houses, especially those priced from RM100,000 to RM300,000, as the eligibility of those in the low and middle income segment for housing loans would be affected, if the move was implemented.
“I don't encourage this move to be implemented now, as this would generate a chain of effects, although the intention is to curb speculation,” he said.
On the impact of the move on property prices, Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat said there would be additional downward pressure.
Real Estate & Housing Developers' Association (Penang) chairman Datuk Jerry Chan said, for example, the impact of the move would be more noticeable on the island than in Seberang Prai where the property market was less speculative.
“Developers who have lined up easy and high percentage financing for its projects will feel the brunt of the proposed move.
“New projects from such developers would assume a slower pace. Property buyers with high leverage for property purchase will also be affected.
“We can expect to see a slower takeup rate from this category,” he said.
Chan said the move, however, would not impact very much on property prices, due to high land cost and strong holding power of major developers in Penang.
They were commenting on Bank Negara's proposed move to curb rising property speculation, as household debt in the country, as measured by household debt to annual gross domestic product ratio, had surged to a record high level in 2009 and 2010, largely stimulated by low interest rates and easy financing scheme for property purchase.
The household debt to GDP ratio in the country has reached nearly 76%, which is on the high side compared with countries in South-East Asia.
Meanwhile, Penang-based Ideal Property Development Sdn Bhd plans to launch projects with about RM400mil in gross development value over the next 12 months, compared with RM600mil as originally planned.