Dear Valued Clients,
Welcome to our E-Newsletter October 2018
We hope this finds you well!
As the last quarter of 2018 is about to begin, let us have a quick look at Malaysian economic performance in the past few months. According to the Statistics Department of Malaysia, a slower economic growth is expected between September and November, based on the performance of Leading Index (“LI”). In an earlier comment by Finance Minister, Mr Lim Guan Eng, Malaysian economy will slow to 5% in 2018 as Malaysia braces itself in the growing tension of trade war between US and China.
A change of government leadership in May has prompted some changes to the tax regime – the re-introduction of Sales and Service Tax (“SST”). The new era of the SST has finally come after the 3-month tax holiday – the previous Goods and Services Tax ( “GST”) was zero-rated for three months. The sales tax rate (is set at 0%, 10% and 5% as well as a specific rate for petroleum) and the 6% service tax will be levied on consumers who use certain taxable services. The comeback of SST regime will definitely have an impact on the revenue manufacturers and importers. That said, healthcare and building material companies would be the major beneficiaries under the new tax landscape.
If you need more information about SST, I believe our website can offer much help where you can read up the ins and outs of the new tax regime here.
On top of the implementation of SST in September, we also see some changes in the price floors in labour market. The Malaysian government has confirmed that a uniformed minimum wage of RM1,050 a month (or RM5.05 an hour) will be implemented from January 2019 onwards. The new minimum wage is actually a gradual increment of minimum wage, instead of the drastic increment to RM1500. The decision to increase the minimum wage was a decision made at a Cabinet meeting – after considering the recommendations of the National Wage Consultative Council (“NWCC”).
Loan Scam Alert
While business loans are crucial for many businesses, business lending is a hotbed for frauds. We would like to flag a recent loan scam where scammers were trying to impersonate as one of 3E Accounting’s representatives and have been asking for unauthorised payment from clients for loans services fee. We would like to alert you that please do not fall victim to such loan scam. 3E Accounting is not providing any loan services and we have no connection to such fraudulent cases. If you think you have encountered a scammer who is impersonating 3E Accounting, please report to the police immediately.
Our top priority to be responsive to our clients’ business needs. In order to achieve this goal, we strive to be a professional organization to offer services that are beyond expectations. We will, by all means, uphold our corporate philosophy, as one of the leading companies at the industry in the world. Your continued support is very much appreciated.
Read More in our E-Newsletter October 2018.