Dear Valued Clients,
Welcome to our E-Newsletter July 2018
We hope that you are well!
Last quarter, the breath-taking election win by Mahathir-led Pakatan government and the zero-rated GST have made the headlines. The euphoria of the democratic shift is not only reshaping Malaysia’s future, many believe that it has the spillover effect on the economic performance.
What is Moving in Malaysia?
Malaysia recorded a 5.4% year on year gross domestic product (GDP) growth in the first quarter. The robust economic performance has laid out a solid foundation for the second quarter’s performance – the export sector has seen a monumental growth with a spike in industrial production growth in April. According to the to the data released by the Ministry of Finance of Malaysia, the Q1 economic growth was predominantly supported by steady domestic demand that has expanded 4.1%. Steady employment and low inflation rate have contributed to the steady growth private consumption of 6.9%. Though the historic change of political power in the country has sent a shock wave to the market, the country’s GDP will remain resilient and the economic outlook maintains positive.
The Pakatan government sticks to its gun by announcing the zero rating GST and reintroduction of petrol subsidies. Research has shown that the recent announcement of zero-rated GST, as well as the petrol subsidies, will leave a good impact on Malaysia’s economy. For one, the people will have more disposable cash as well as increased spending power. For another, the zero rating GST implementation will generate more business activities and bring in more revenue to the country. In addition to this, the new government means new business opportunities.
Vowed to maintain the country’s business-friendly policies, Tun Mahathir has given the strong assurance to investors, both foreign and local, that Malaysia will continue to maintain the robust business environment and welcomes both foreign investors and talents to come to Malaysia.
New Countries Support in 3E Accounting International Network: Belize and Ecuador
A growing part of 3E Accounting’s business is helping clients in setting up business in other parts of the world, especially in setting up physical offices, getting the necessary licencing as well as offering on-going services and supports such as accounting, payroll, and company secretarial matters. Last month, 3E Accounting International Network is added two new countries support to the global network: Belize and Ecuador. The milestone expansion in our global network means combined expertise and customer base, and it showcases that we are capable to provide the assistance and consultation to our clients to setup their business across the globe.
On a final note, we take pride of being one of the leading industry players in the country, and we will continue our efforts to provide the best services to all our clients.
Read More in our E-Newsletter July 2018.