Dear Valued Clients,
Welcome to our E-Newsletter December 2018
We hope this email finds you well!
Last October, the World Bank chief economist for the East Asia and Pacific region Sudhir Shetty has commented that Malaysian economy will see a slower growth in the next three years due to the easing of exports and public investments. According to its recently released World Bank East Asia and Pacific Economic Update, Malaysia can expect a moderate growth at 4.9 % this year, 4.7 % in 2019 and 4.6 % in 2020. However, a moderate economic growth (in the short term) could be a stepping stone that leads to greater achievement- the World Bank predicts Malaysia to achieve high-income country status between the year 2020 and 2024.
Despite the prediction of slower economic growth, Malaysia had delivered a resilient performance in many areas. The recently released World Bank Doing Business 2019 Report is the best testimonial of Malaysia’s resilient performance. Malaysia has advanced nine spots to 15th among 190 economies worldwide (Malaysia was ranked at 24 in 2018’s report). The improved ranking is the benchmark that Malaysia’s economic reforms are on the right track.
The recently announced Malaysia Budget 2019 has received mix reactions from Malaysians. Themed “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society”, Budget 2019 conveyed the message that Malaysian government has put in efforts on institutional reforms, Malaysians’ wellbeing as well as the cultivation of entrepreneurial economy.
One thing worth highlighting is Budget 2019 has spelt out the 12 strategies to recapture Malaysia’s glory status of “Economic Tiger”:
- To strengthen fiscal management
- To restructure and rationalise government debt
- To increase government revenue
- To ensure welfare and quality life
- To increase job opportunities and marketability
- To improve quality of healthcare services and social welfare protection
- To increase disposable income
- To have better education system for a better future
- To initiate new economic power
- To grab opportunity to face global challenge
- To redefine government’s role in business
- To ensure economic fairness and sustainable economic growth
You can read on what has been laid out in Budget 2019 on our website.
Another highlight of Budget 2019 is the Special Voluntary Disclosure Program which is also part of government’s tax reform effort. The Special Voluntary Disclosure Programme, that is open from Nov 3 to June 30 in 2019, enables taxpayers to voluntarily declare any unreported supplementary income. Programme was an initiative to encourage taxpayers to voluntarily declare their income. On top of that, this programme is offered to all categories of taxpayers with reduced penalty rate according to the voluntary disclosure and tax payment period. Under the program, the lower penalty rate for voluntary disclosure of unreported income is 10% and 15% while the taxpayers will be slapped with penalties ranging from 80% to 300% for post-voluntary disclosure.
The rapid growth of technology and digital commerce has reshaped global payments landscape. In Malaysia, the next wave of digital payment in brewing. Around 40 local and foreign banks will offer DuitNow, a new digital payment service from Payments Network Malaysia Sdn Bhd (PayNet), from December 2018 onwards. Unlike the conventional online money transaction, DuitNow does not require banking details like bank account number for money transaction but allows customers to transfer money instantly and securely using payee’s mobile number.
Last but not least, I would like to sincerely thank our partners, management, and employees for their continuous commitment to this journey. We will continue to deliver the best service to all stakeholders!
Read More in our E-Newsletter December 2018.