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Friday, November 29, 2013

FMM: Production cost to double on tariff hike

Friday, 29 November 2013 00:00 
Sathish Govind
SIGNIFICANT INCREASE IN COST: (From left) Yong, FMM VP Datuk Saw Choo Boon
and VP Datuk OK Lee at the presentation of the survey findings in Kuala Lumpur yesterday.
(Pic by Ismail Che Rus)
The government’s announcement on the expected rise in electricity tariff will have an impact on manufacturers, resulting in a double-digit increase in production cost, according to the Federation of Malaysian Manufacturers (FMM) yesterday.

Its president Tan Sri Yong Poh Kon said the recent FMM-Malaysian Institute of Economic Research (MIER) Business Conditions Survey indicated that local manufacturers expect the cost of production to increase on the back of the tariff hike.

These concerns come at a time when the government is on the verge of rationalising its subsidy and implementing the Goods and Services Tax (GST).

“Manufacturers are already expecting some form of energy price increase due to the subsidy rationalisation, so this will impact not only the gas users, but also the electricity costs,” Yong told reporters at the presentation of the survey findings in Kuala Lumpur yesterday.

Yong added that different industries will be impacted differently by the adjustments, depending on their electricity usage, but there is no doubt that the double-digit increase is quite significant.

“The government has been saying that they need to reduce the subsidy and also to fund the price of imported liquefied natural gas, as such we anticipate electricity tariffs to move up.

We do not know the actual amount of the increase yet, so we have to wait for the official announcement.

“We hope it (tariff hike) will move up gradually rather than be implemented at once. We are looking forward to greater details on how this is which alleged that FCB imports from Thailand were being imported into Malaysia at a much lower price than the price in the domestic market of the alleged country.

“The petitioner claims that this is causing material injury to the domestic industry in Malaysia,” MITI said, adding that the duties on FCB imports from Thailand will range from 13.96% to 63.1%.

MITI also said the final determination will be made based on the outcome of the verification visits to the foreign producers’ premises no later than 120 days from the date of the preliminary determination report.

The government has also imposed anti-dumping duties on imports of tinplate from China and South Korea.

On Feb 20, 2013, the government initiated an antidumping investigation based on a petition filed by Perusahaan Sadur Timah Malaysia Bhd (Perstima) on behalf of the domestic industry producing electrolytic tinplate (tinplate).

Perstima alleged that imports of tinplate originating in or exported from China and South Korea are being imported into Malaysia at a price much lower than the price in the domestic market of the alleged countries.

On April 10, Southern PC Steel Sdn Bhd filed a petition to MITI on behalf of the domestic industry producing stranded wire alleging that imports of stranded wire originating in or exported from China are also being imported into Malaysia at a price much lower than the alleged country's domestic market.

MITI found that there is sufficient evidence to continue with further investigation on the importations of stranded wire, however, the government decided not to impose provisional anti-dumping duties on imports of stranded wire originating in or exported from the alleged country.

Where polls and bolos rule over twerk

Tuesday, 26 November 2013 10:00 
Syed Nadzri Syed Harun

In Malaysia , the term is not “selfie” or “twerk” which should be Word Of The Year but, by far, the overused, extremely popular and pooped out “polls”.

“Polls” or “polling” may not be a new word but its place in the minds of the people in this country has been truly magical the past one year or so as elections of all kinds continue to dominate our lives everyday.

Even among the Internet generation here “selfie” and “twerk” which have just been picked as Words Of The Year by Oxford dictionaries do not have the same impact “polls” has had or is having. “Selfie” means using your handphone to take a picture of yourself while “twerk” is a gyrating, sexuallystimulating movement common in today’s dances.

I do not like its meaning but the sound of “twerk” which somehow gives out negative vibes is something else. Just by the way it sounds, I could very well use it freely on my enemies as much as they would use it on me. “You twerk!” But look at “polls”.

Various speculations about when the general election was going to be held started more than two years ago and it reached frenzied pitch from the start of this year. By the time the date was finally announced eight months ago, the whole country went into a delirium with the 13th General Election (GE13) which turned out to be a close affair.

The significance of the word did not end there of course because this year alone, Malaysians were fed with all kinds of things to do with polls and elections apart from GE13 — the elections in Umno, Gerakan, PAS, MIC, together with the controversy-filled DAP polls as well as the Kuala Besut and Sungai Besar by-elections.

And look at what’s coming in MCA and PKR? In fact, most of the elections mentioned above have been riddled with disputes and controversies that they remain the talking point for a great number of days this year.

The word “polls” itself seems to be bewitching in the Malaysian context as it has spawned many other words and phrases that have captured our imagination.

One is “indelible”, a word seldom heard before it was announced last year that indelible ink would be introduced in the country’s election process. It required voters to dip a finger in the ink as proof of having cast the ballot papers.

However, this method itself came in for a lot of dispute and this undoubtedly brought forth other words as spoof — illegible ink, incredible ink and edible ink among them.

This year’s GE initially also raised a new power in the political sphere using the word and concept of the “Third Force” which held a lot of promise but faded away miserably after GE13.

There are several other words which could come close to being classified as Word Of The Year.

“Transformation” another abused term is one, the politically- correct buzzword that got everyone uptight without knowing what it is supposed to mean.

Then there is “GST”, the Goods and Services Tax proposition that sparked the country into adrenalin drive. Like polls, “GST” has been in the air for many months now and, even before its real implementation in 2015, it is a matter of time before we feel its real impact.

There are three other words that came close to being the runner-up Word Of The Year in Malaysia.

One is “viral” — in the YouTube sense. This has caused so much of a claptrap lately that every little thing posted on YouTube or Faceboook is said to have gone viral.

I think it is a gross abuse of the term. It gives new meaning to the word which, as we knew it, is previously confined only to the medical or clinical aspects of things or sickness going “viral”.

The other word that has attracted so much attention to be in line for Word Of The Year in Malaysia is of course “racist”. Ironically, the less said about this term is better but it has to be pointed out that it is used as a launchpad for attacks from all corners.

Finally, the word or phrase that comes close to pushing polls off the pedestal is “bolos dan lolos”. The Malay expression points to a state of exposed and susceptible defence line.

It speaks volumes about firstly, the number of firearms and other contrabands that made their ways past our border guards. And secondly, the Malaysian football team which consistently crumbles under attack.

Syed Nadzri is editor-in-chief of The Malay Mail. He can be reached at syednadzri@

Rakyat perlu beri ruang kerajaan baiki sistem percukaian

NOVEMBER 28, 2013

Rakyat harus bersikap adil dan memberi peluang kepada kerajaan untuk menerang dan menjelaskan mengenai pelaksanaan Cukai Barangan dan Perkhidmatan (GST) ke peringkat akar umbi dalam usaha menambah baik sistem percukaian negara.

Pegawai Kemajuan Negeri Unit Penyelarasan dan Pelaksanaan (ICU) Jabatan Perdana Menteri, Syed Shaari Syed Abdullah, berkata rakyat perlu memberi masa dan ruang kepada kerajaan untuk memperjelas perkara itu dan jangan mudah mempercayai tohmahan pihak tertentu.

"Kalau kita lihat di negara mana pun memang GST ini satu sistem yang lebih adil. Cuma di negara kita ni kita belum biasa lagi, jadi adalah berbagai tohmahan. Semua orang tidak suka dikenakan cukai. Kalau boleh hendak jadi macam Brunei tidak perlu dikenakan cukai.

"Kerajaan sedang mengkaji pelaksanaan GST ini. Sebab itu, kerajaan mengambil masa untuk melaksanakannya. Kita pun kena 'adil' kepada kerajaan, bagi peluang untuk memperbaiki sistem ini," katanya kepada pemberita selepas merasmikan Taklimat GST bertajuk 'Memperteguh Ketahanan Ekonomi, Memperkasa Transformasi dan Melaksanakan Janji', di Georgetown, hari ini.

Turut hadir Pengarah Jabatan Penerangan Negeri Ishak Abdullah.

Kira-kira 300 peserta daripada jabatan dan agensi kerajaan, pemimpin masyarakat dan Komuniti 1Malaysia menghadiri taklimat anjuran bersama anjuran bersama Pejabat Pembangunan Persekutuan Pulau Pinang dan Jabatan Penerangan Pulau Pinang itu.

Ishak berkata. sesi penerangan pelaksanaan GST itu akan berterusan dari semasa ke semasa dan memfokuskan kepada penjawat awam kerana mereka adalah jurucakap tidak langsung kerajaan.

Katanya, sesi penerangan di peringkat akar umbi akan dibuat dalam skala yang lebih kecil menerusi pertubuhan bukan kerajaan di bawah jabatan itu iaitu Komuniti 1Malaysia. - Bernama, 28 November, 2013.

On tax evaders and traitors – Sakmongkol AK47

NOVEMBER 28, 2013

The reason why the government lacks money is because they overspent indiscriminately like there’s no tomorrow. They have violated the cardinal rule of financial prudence – spend within your means. The government earns less than its spending so their finance is always in deficit.

In the meantime, they have not addressed the issue of leakages and corruption. Overall the economy is growing, only faster or slower.

The economy as a whole is growing and healthy. Wealth is created in the estates, shop and factory floors, in corporate boardrooms, through commerce etc. Only government finances and the way it conducts its business is not healthy.

The issue then is – we don’t have a revenue problem, we have a government spending problem. As long as the economy is healthy, the government will earn a portion as legitimate revenue. What it does with this portion, is the issue. How it manages it.

The truth is slowly emerging now – GST is another source of government revenue. It is efficient in terms of extracting the maximum from the public.

We worry how will this government handle that little extra. We can’t go by its record and we can’t go by the record of this PM who fails as a Finance Minister – he who simply misses the point when responding by saying don’t expect us to use candles to entertain dignitaries when faced with criticisms about his electricity bill of RM73,000 a day.

Public debt has increased tremendously under Najib’s stewardship of the economy. He is equally spindrift as the missus is.

I will be happy to instruct the PM how to catch out the tax evaders. If he doesn’t have time, I will be equally happy to tell the 3.8 CGPA graduate in the person of the deputy finance minister, who are the tax evaders and therefore traitors. Why make the big fuss and create unnecessary tension among people?

The biggest tax evaders and therefore traitors must be the biggest tax payers since they are the groups most interested to hold back paying taxes. The answer is to identify who are the biggest taxpayers and the rich who the government has not taxed.

What about the operators of the black economy – the illegal gambling and lotteries? What about the biggest operator of one armed bandits who before the GE organised one of the largest gatherings for Najib in Klang? What about the top flight bankers who earned millions in stock manipulations? What about those who do the Air Asia thing of collecting what’s due to the government upfront but refuse to hand over to the government excusing the delay to some thought out dispute?

They have the resources to evade taxes. The common people don’t have the resources and resourcefulness, tax advisers, tax lawyers, tax accountants at their disposal. The biggest traitors must come from the ranks of business cronies, and the rent seekers, the 5% who controls 40% of the nation’s income.

Don’t start shooting off our mouths suggesting the common people are the enemy and traitors. The ordinary income tax paper pays whatever is taxable off him because most of them pay as you earn. They can only pay out of the income they legally earn. The people who don’t pay taxes are those who earn over and above their declared income – those who earn money on the side by skimming off government purchases, companies that spend on themselves as expenses to avoid handing everything to the government, bankers who make tons of money who don’t pay taxes, rent seekers who earn a lot but don’t pay taxes. Arrest them first and strip them off citizenship.

Don’t care from which race. A Malay traitor is the same as a Chinese traitor and Indian traitor.

Where does the government get its revenue? Well, they get it mainly from 4 main sources – tax revenue, non-tax revenue, non-revenue receipts and revenue from federal territories.

So, if government revenue is not sufficient, the leakages must come from either one of these sources. The typical breakdown is 73% of government revenue comes from tax revenue, 25% from non-tax revenue and the balance 2% from non-revenue receipts and federal revenue receipts. But still people are in the dark, what exactly are the sources of revenue.

Taxes are divided into direct and indirect taxes. Direct taxes include the taxes we pay personally on account of our income – personal income tax. Companies earn income and pay taxes – corporate or company tax. Petronas pays petroleum taxes. Finally there is the withholding and cooperative tax.

In addition we pay stamp duties- duties paid on business transactions, agreements etc. we sell property, we pay a tax called real property gain tax. Finally we get direct taxes from the business activities in Labuan – since it’s an offshore banking centre we derive some tax revenue from there. 

The indirect taxes on the other hand include export duties, import duties, sales tax, service tax and levies. So, the common man, the kampong man pays indirect taxes when they buy goods and services. Just because he doesn’t earn a taxable income level, does not mean he doesn’t pay any tax at all. He does not pay income tax but pays sales and services tax.

If he owns a property within the jurisdiction of a local council he pays quit rent and if he owns land, he pays land taxes. So if we want to catch out the tax evaders don’t go after the hapless common man- go after the business cronies, rent seekers, monopolists, licence holders, the illegal bookies, the corrupt and the thieves. These are the traitors, Malays, Chinese, Indians or whichever Malaysian groups they belonged. –, November 28, 2013.

* Sakmongkol AK47 is the nom de guerre of Raub MP Datuk Ariff Sabri Abdul Aziz.

*This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

Administrative assessment

NOVEMBER 29, 2013
Tunku 'Abidin Muhriz is founding president of the
Institute for Democracy and Economic Affairs (Ideas).
NOV 29 — Two weeks ago, it was reported that Kuala Lumpur City Hall would be revaluing property in the capital, causing increases in assessment rates for the first time in 21 years, effective Jan 1 next year. 

Of course there was an immediate outcry from property owners, particularly since some of the half million residents who received notices reported increases of 250 per cent. Two former mayors critiqued the idea, too, with the immediate past mayor pointing out that he left the city RM3 billion in reserves.

Some opposition supporters characterised the decision as a punishment on the city’s voters for voting Pakatan Rakyat, and yet another burden on the people after the Goods and Services Tax (GST). (The comparison is disingenuous: while GST was in the Barisan Nasional manifesto and part of a wider reform of taxation, the rate hike announcement came out of the blue.

The recent admonition that “not paying tax is treason” left a bad taste, though. If government spending is profligate, unaccountable and contrary to promises made to the people, then it is much more patriotic to spend on efficient businesses and worthy charities instead.)

In a stunning volte-face (as I write this), it seems the sustained campaign for property owners to protest and submit letters of complaint to City Hall has worked. The implementation of the rate hike has been postponed, and now legitimate questions will be asked about how this policy was ever decided upon in the first place. It also reignites questions about how our capital city is governed. 

Most of the great cities of the world have a directly elected mayor and a city legislature to perform wide-ranging executive and legislative functions at a decentralised level. 

Some mayors have the authority to bring in foreign direct investment and even have powers over police (in countries where police forces themselves are decentralised). The democratic legitimacy and powers of KL’s institutions pale by comparison, and the battlecry coined by British colonists in America and repeated in Washington DC today, “no taxation without representation”, is gaining currency here too. 

I have seen our current mayor at cultural events, and he is an affable ambassador of our capital. But wouldn’t it be great if our mayors had real authority to champion their cities and have the power to compete with other cities in the country? And to do so with the legitimacy of people who voted them into office, instead of depending on the patronage of the federal or state government?

Dynamic mayors can do much for the identity of the city, and some become celebrities in their own right, like Michael Bloomberg and Boris Johnson (and now Rob Ford of Toronto, for perhaps less good reasons). 

And greater decentralisation could lead to entirely new concepts in government, like participatory budgeting so local communities could decide whether they want more street lights instead of CCTVs, or an urban farm instead of another futsal court. Then people might have a different attitude towards property taxes.

So how do we move towards such possibilities? 

Personally, I would first correct a historical anomaly by returning KL to the Sultanate of Selangor, as the 1974 separation was a political fix outshone only by the federal government’s two additional annexations. I accept that this will be almost impossible: there is zero political will and uncertain popular support for this, and the federal territories already have so many symbols of identity — flag, anthem, honours, even senators — that would be difficult to erase.

Other proponents of decentralisation argue that the federal territories might as well be turned into a full state: the benefit being that residents would get representation in a state legislative assembly and have a state government. But that would set an alarming precedent. 

So far, every state has predated the federation as a kingdom or colony and independently lent their sovereignty to the Federation of Malaya and Malaysia (and before that, the Federated Malay States, drawing inspiration from an old federation called Negri Sembilan). 

If we allow the federal government to carve up existing states to create new states, it would undermine the foundational logic of our country. Furthermore, even if an “FT state” were to be created, it would not enjoy much autonomy in the current context anyway: for example, city councillors could not be elected as local government elections are still banned nationwide.

While the two above scenarios may help in the process of decentralisation, neither is really necessary in granting our capital city a more local and accountable democratic framework. With the appropriate federal legislation, KL could still have an elected mayor and an elected city hall: and they, rather than appointees of the prime minister, could decide whether to revalue property or determine how to assess rates.

* This is the personal opinion of the columnist.

- See more at:

Amid soaring costs, manufacturers less optimistic on climate, survey shows

NOVEMBER 28, 2013

PETALING JAYA, Nov 28 — Malaysian manufacturers expect a slump in business as the year comes to a close largely due to an expected spike in production costs, but they remain bullish on their expansion plans over the next three years, a survey has found.

According to the Business Conditions Survey for the second half of 2013, jointly conducted by the Federation of Malaysian Manufacturers (FMM) and the Malaysian Institute of Economic Research (MIER), business conditions were downgraded 10 points to 98 from the first half of the year.

Despite this, 42 per cent of the 394 respondents expect to expand their business in the next three years.

“If you look at the survey, the second half of 2013 has been harder than the first half, but looking forward there is some optimism,” FMM vice-president Datuk Saw Choo Boon told reporters here at Wisma FMM.

“I think people do expect the conditions to improve slightly and the biggest challenge I guess is the cost, they must [have] already factored in the impending rationalisation of subsidies, so that would be a big challenge.

“And of course the other big challenge is manpower whether it’s foreign labour, or getting people with the right skills, getting people with sufficient English proficiency, these will be a real challenge for the industry as it moves up the scale.”

The survey also found that the indices for local manufacturing sales and number of employees posted the biggest declines in the second half of 2013, with each dipping eight points from the first half of the year to 91 and 101 respectively.

Close to half or 48 per cent of respondents maintained sales, while 21 per cent improved on sales, with 31 per cent saying otherwise.

Although 68 per cent retained their manpower, only 16 per cent hired more, compared with 25 per cent early this year.

Business expectations of the next six months appear to be moderate and cautious.

“The expected business conditions index plummeted 27 points from the first half of this year to 106 in the second half, with only 28 per cent of the respondents anticipating a pick-up in business activity, down from 44 per cent in the first half of the year,” the report said.

All other expected indicators in the latest survey also tumbled, except for capital investment and cost of production.

The recent increase in fuel prices “greatly affected” almost 90 per cent of the respondents, with 45.7 per cent and 44.2 per cent indicating high and moderate impact respectively.

Of those who felt the impact, almost 90 per cent stated that the higher prices had spiked their logistics cost, while 72.3 per cent had to contend with more expensive raw materials and almost 50 per cent higher final prices of goods.

Another 49 per cent said that their competitiveness was affected, and 38.8 per cent had to increase employee allowances for mileage and fuel.

Almost 57 per cent of the respondents were in favour of the contentious goods and services tax (GST), but 33.5 per cent voted for 24 months for implementation instead of the 18 months from the date of announcement.

- See more at:

Ombudsman system not suitable in Malaysia, deputy minister argues

NOVEMBER 27, 2013
UPDATED: NOVEMBER 27, 2013 01:42 PM

KUALA LUMPUR, Nov 27 — Putrajaya has no plans to set up an ombudsman as the Sweden-originated independent oversight system may not necessarily “suit us”, Deputy Minister in the Prime Minister Department Datuk Razali Ibrahim told the Dewan Rakyat today.

The opposition have long called for the establishment of an ombudsman and today its lawmakers demanded to know why Putrajaya has been so reluctant to set up the independent body meant to manage complaints against the government, similar to most developed democracies.

Razali, however, said Malaysia already has its own disciplinary body — the Public Complaints Bureau (BPA) — which the deputy minister claimed was sufficient to deal with public complaints against government workers.

“The ombudsman, which is from Sweden, may not necessarily suit us. The government has of course studied about it but we have decided rather to improve our BPA,” he said in a reply to DAP Segambut MP Lim Lip Eng (picture)during Question Time in Parliament here.

Razali added that the government is constantly trying to improve the BPA.

It recently added new guidelines for 2014, a move the deputy minister said would ensure the efficiency of the complaints unit.

Earlier, Lim had asked if the government had cited other countries as a reason for implementing the controversial Goods and Services Tax (GST), why had it not chosen to emulate other rich economies by setting up an ombudsman.

Razali retorted, saying Lim cannot expect the government to apply his logic to everything, noting that Singapore, a country often praised by the opposition, does not have an ombudsman.

“I don’t think we can use that logic”.

- See more at:

Perak property developers stay calm over RPGT hike

Published: Friday November 29, 2013 MYT 12:00:00 AM 
Updated: Friday November 29, 2013 MYT 8:28:19 AM
Likely not to be affected: The showhouse of the Tasek Nova in Tasek.
THE increased real property gains tax (RPGT) announced in Budget 2014 might have drawn flak from developers based in many major cities, but their counterparts in Perak are unfazed by the move.

The Star spoke to several developers in the state for their opinion on the matter and the general consensus seems to be that the RPGT hike would barely affect the property market here.

From Pyhomes Realty managing director Chan Hoong Mun’s experience, the Ipoh property market had barely any speculators, which were the main target of the RPGT hike.

“As far as residential properties in Ipoh are concerned, most buyers are those who plan to stay in the houses.

“There might be some speculation for non-residential properties such as shops and factories, but I believe that by large, the Perak market will not be affected much by the RPGT hike,” he said.

Chan said that the RPGT hike would have a greater impact on the more developed areas such as the Klang Valley, Penang and Johor Baru, where property prices were skyrocketing due to speculation, and investors would snap up properties during the launch to sell them for high profits later on.
Pyhomes project: The Casa Lapangan houses under construction in Pengkalan in Ipoh.
“While property prices in Perak are rising, the trend is not due to speculation and prices remain very low when compared to the northern states.

“Instead, the increasing prices are due to rising costs of development and the staggering amount of bureaucracy developers have to go through to proceed with their projects,” he said.

Pyhomes, which has been a player in Perak’s property market since 1981, currently has a few active projects in and around Ipoh, namely its Kinara Parkview and Casa Lapangan double-storey terrace houses off Japan Pasir Puteh and projects in Sungai Siput and Batu Gajah.

Over in Kampar, Huges Corp executive director Hew Fen Yee said he did not foresee the RPGT hike affecting residential property sales in the former tin mining town in the near future.

“The current property market in Kampar is more geared towards long-term investors who buy for their own use or rent out as student accommodation.

“Those who rent out to students earn an income through the rental instead of selling off the property, while the rest are workers or businessmen who buy houses for their own accommodation and are not likely to sell them off in the short-term,” he said.

Active project: The Kinara Parkview housing project in Pengkalan in Ipoh.
Hew said property price would not deter people from buying houses in Kampar, as prices here were still reasonable and very affordable when compared to big cities.

“For example, we are currently developing Phase 7 of our Westlake Homes project that consists of double-storey terrace houses priced under RM300,000, which is a price that is almost impossible to find in the more developed towns and cities.

“Instead, the problems faced by property buyers in Kampar are mostly about acquiring bank loans, as new regulations have tightened loan requirements, making it quite difficult for loan applications with insufficient paperwork.

“The amount and duration for housing loans have also been reduced, thus affecting the buying power of homebuyers,” he said.

Despite the property market becoming more challenging for buyers, Hew believes it is not an impossible feat for genuine buyers looking to acquire property for their own.

“In Kampar, buyers are spoilt for choice as there are various players in the property market offering cheaper and smaller houses.

“Thus, owning a house is not a problem but they may have to make do with smaller properties in less central locations,” he said.

In KPM Corporation project manager Stuart Chin’s opinion, although the RPGT hike was implemented to curb speculation and thus slow down the escalating price of property, other measures introduced in Budget 2014 will still lead to higher property prices.

“The implementation of the Goods and Services Tax (GST) on April 1, 2015 will result in higher costs for building materials, which will eventually be passed down to property buyers.

“Besides that, the reduction or removal of subsidies for necessities such as sugar lowers the spending power of many families and they will find it harder to save money for buying a house or shop,” he said.

Chin said the Government had to look at improving the purchasing power of its citizens if it wanted to help them buy their first property.

“While property prices escalate, the salaries of private sector workers have barely budged in recent years.

“Even civil servants are affected, as we’ve noticed lower property sales in Gerik where most buyers are civil servants.

“They were most likely hoping for some government perks in Budget 2014 before making a property purchase decision and decided to hold but when none were announced,” he said.

Despite the difficulties, Chin said property developers should not merely throw the blame around and should come up with ways to attract more buyers.

“Developers need to be attuned to the changing needs of buyers and devise projects accordingly.

“Over in KPM Corporation’s current project, we came up with the single-storey semi-detached phase of Tasek Nova partly because we envisioned that it would appeal to middle-class families and those working outside Ipoh who are looking to buy houses for their aging parents to stay in.

“By adding features and facilities such as gated and guarded security, a swimming pool, gym and community hall, we are able to attract the interests of buyers and maintain sales during such uncertain times.

“The economy and government policies might not be very favourable towards property developers, but it is not impossible to conduct business in this environment.

“We need to think out of the box,” he said.

Harga hartanah naik sederhana kesan RPGT

Publication: BH
Date of publication: Nov 28, 2013
Section heading: Bisnes
Page number: 004

Harga hartanah tempatan dijangka meningkat sehingga enam peratus tahun depan, kata Pengarah Negara HomeGuru Sdn Bhd, Gerard Kho.

Beliau berkata, kenaikan sederhana seperti unjuran tahun ini iaitu sekitar lima hingga enam peratus adalah susulan pelaksanaan Kadar Cukai Keuntungan Hartanah (RPGT) dan larangan penggunaan Skim Tanggungan Faedah oleh Pemaju (DIBS).

Kurang aktiviti pembinaan

Katanya, pelaksanaan RPGT dan pemansuhan DIBS bermula tahun depan akan meredakan pasaran serta mengurangkan aktiviti pembangunan oleh pemaju sedangkan permintaan kekal kukuh sekali gus menyebabkan harga hartanah meningkat secara sederhana.

"RPGT tidak akan mengekang kenaikan harga sebaliknya akan mengurangkan aktiviti spekulasi. Ia bagaimanapun memberi impak positif iaitu meningkatkan penyertaan pembeli sebenar dalam industri hartanah," katanya kepada media selepas Forum Prospek Pemaju Hartanah PropertyGuru 2014 di Petaling Jaya, semalam.

Forum anjuran HomeGuru, pengendali portal hartanah terkemuka, menampilkan tujuh panel antaranya Pengurus Besar Trinity Group, C Y Ng; Pengarah Urusan Andaman Group, Datuk Seri Dr Vincent Teow; Ketua Eksekutif Zerin Properties, Previndran Singhe; Ketua Pegawai Operasi Henry Butcher Malaysia, Tan Chee Meng; Timbalan Pengerusi Persatuan Pemaju Perumahan dan Hartanah (REHDA) Perak, Raymond Chan; dan Ketua Eksekutif Dynasty View Sdn Bhd, K K Wong.

Naik 30 peratus

Dalam Bajet 2014 yang dibentangkan Perdana Menteri, Datuk Seri Najib Razak bulan lalu, kerajaan akan menaikkan RPGT kepada 30 peratus bagi hartanah yang dijual dalam tempoh pegangan sehingga tiga tahun, manakala pelupusan dalam tempoh empat dan lima tahun, kadarnya dinaikkan kepada 20 peratus dan 15 peratus.

Ia adalah bagi meningkatkan kemampuan rakyat membeli rumah dan memastikan harga rumah stabil serta mengekang aktiviti spekulasi yang keterlaluan.

Bagi pemansuhan DIBS pula, ia dibuat selepas mendapati pemaju perumahan menggunakan pelbagai taktik menerusi skim seumpama ini untuk mengaburi pembeli dan menarik perhatian orang ramai bagi melariskan produk hartanah mereka.

Sementara itu, Wong berkata, langkah kerajaan menggalakkan pembinaan rumah mampu milik akan menyebabkan lambakan hartanah berkenaan di pasaran tetapi ia adalah petanda positif jika berlaku.

Katanya, lambakan rumah mampu milik yang dibangunkan pemaju akan meningkatkan akses pembeli kepada hartanah berkenaan.

"Ia (lambakan) bagus kerana pada masa ini permintaan untuk rumah mampu milik melebihi penawaran. Malah, Malaysia juga masih memiliki tanah yang boleh dibangunkan kediaman jenis itu," katanya.

Sementara itu, forum kali kedua dianjurkan menyentuh pelbagai topik penting sektor hartanah termasuk RPGT, DIBS, GST dan projek hartanah mampu milik.

Sesi penerangan GST diteruskan ke akar umbi

Makhtar Mustapha ketika berucap merasmikan program Penjelasan Bajet 2014 dan
GST kepada ketua jabatan dan pegawai agensi Kerajaan Persekutuan di Kota Bharu,
Kelantan semalam.

KOTA BHARU 28 Nov. - Sesi penerangan Bajet 2014 dan Cukai Barang dan Perkhidmatan (GST) akan diteruskan hingga ke peringkat akar umbi di seluruh kawasan Parlimen dan daerah negeri ini bagi membantu penduduk memahami pelaksanaannya.

Pengarah Jabatan Pembangunan Persekutuan (JPP) Kelantan, Datuk Makhtar Mustapha berkata, program penerangan secara bersiri itu khususnya mengenai GST adalah penting untuk menangani persepsi negatif yang sering dilemparkan kepada kerajaan.

Beliau berkata, program itu akan dikelolakan pihak Jabatan Penerangan Negeri Kelantan sebagai persediaan menjelang pelaksanaan GST pada April 2015 nanti.

"Kita mahu memberi penerangan terperinci dalam bahasa yang mudah kepada rakyat kerana ramai yang masih keliru dan bimbang pelaksanaan GST akan menyebabkan harga barang semakin mahal.

"Penduduk Kelantan khususnya banyak dimomokkan dengan tanggapan negatif tentang segala perancangan dan projek yang kerajaan laksanakan, jadi sesi penerangan sebegini penting untuk menangani persepsi sebegitu.

"Kerajaan sebenarnya sentiasa berusaha keras memastikan kebajikan rakyat dalam segenap sudut termasuk mengenakan kadar cukai yang rendah kerana faedahnya rakyat dapat membeli barang dengan harga murah," katanya.

Beliau berkata demikian kepada pemberita selepas merasmikan program Penjelasan Bajet 2014 dan GST kepada ketua jabatan dan pegawai agensi kerajaan Persekutuan di sini hari ini.

Terdahulu dalam ucapannya, Makhtar memberitahu, kerajaan dalam Bajet 2014 memperuntukkan kira-kira RM2 bilion untuk pelaksanaan 163 projek di negeri Kelantan termasuk projek sambungan dari Rancangan Malaysia Ke-10 (RMK-10) dan antara projek besar adalah menaiktaraf Hospital Kuala Krai dan pembinaan Hospital Bachok di Tangok, Bachok.

Beliau berharap kesemua 70,000 kakitangan Kerajaan Persekutuan di negeri ini dapat menjadi kader yang efektif dalam menyampaikan maklumat tentang inisiatif kerajaan kepada masyarakat.

"Kita sentiasa berperang dengan persepsi contohnya semasa pembinaan Jambatan Sultan Yahya Petra 2 yang didakwa retak, bocor dan sebagainya hanya kerana pihak tertentu mencari kesalahan kecil untuk membangkitkan kemarahan rakyat.

"Namun, kita gembira kerana jambatan dengan kos RM180 juta itu sudah siap dan kita sendiri dapat lihat bagaimana ia memberi manfaat yang amat besar khususnya kepada penduduk daerah Pasir Mas dan Tumpat," katanya.

Sementara itu, salah seorang penceramah, Penolong Kanan Pengarah Kastam II, Raizam Mustapha berkata, pelaksanaan GST adalah satu penambahbaikan yang amat penting kepada sistem percukaian negara yang bakal memberi manfaat kepada semua golongan termasuk pedagang dan pengguna.

© Utusan Melayu (M) Bhd

Pengilang gemar GST daripada SST

KUALA LUMPUR, 28 Nov - Kebanyakan responden dalam kajian terbaharu Persekutuan Pengilang Malaysia (FMM) lebih menggemari perlaksanaan Cukai Barang dan Perkhidmatan berbanding Cukai Jualan dan Perkhidmatan (SST) yang digunakan sekarang.

Dalam Kajian Keadaan Perniagaan Setengah Kedua 2013 FMM-MIER 2013, 56.8 peratus daripada 394 responden di seluruh negara memilih untuk beralih kepada GST, sementara 43.2 peratus memilih untuk meneruskan SST.

Presiden FMM Tan Sri Yong Poh Kon berkata, 6.1 peratus daripada responden itu bersetuju dengan kadar enam peratus yang akan diperkenalkan kerajaan, tetapi hampir 80 peratus berpendapat GST patut bermula daripada empat peratus, sementara 13.2 peratus memilih kadar lima peratus. - BERNAMA

© Utusan Melayu (M) Bhd

Manufacturers prefer GST to SST: FMM

News 2013-11-28 15:32

KUALA LUMPUR, Nov 28 (Bernama) -- The majority of respondents in the Federation of Malaysian Manufacturers¡z (FMM) latest survey prefer the implementation of the much debated Goods and Services Tax over the current Sales and Services Tax (SST).

In the FMM-MIER Business Conditions Survey Second Half 2013, 56.8 per cent of 394 respondents nationwide voted to move to the GST, while 43.2 per cent preferred to continue with the SST.

As announced in Budget 2014, the broad-based consumption tax will be enforced on April 1, 2015 and pegged at six per cent, replacing the 16 per cent rate of the SST. FMM President Tan Sri Yong Poh Kon said 6.1 per cent of the respondents agreed with the six per cent rate, but close to 80 per cent opined that the GST should start at four per cent while 13.2 per cent favoured a rate of five per cent.

"Once this system (GST) is in place, naturally people will expect some increase in the rate in time to come. We cannot speculate," Yong told a press conference after revealing the findings of the survey here today.

He was responding to a question on an acceptable increase in the GST rate in the future.

Close to 42 per cent of the manufacturers surveyed said they are looking to expand their existing business over the next three years.

The findings show 36 per cent plan to maintain their existing level of operations, 27.2 per cent are likely to restructure their business model, 27 per cent want to diversify their businesses, 14.7 per cent plan to scale down while 9.4 per cent are likely to relocate their business.

The survey, which took place before the announcement of Budget 2014, was jointly conducted by FMM and the Malaysian Institute of Economic Research (MIER).

Thursday, November 28, 2013

Beri Ruang Kerajaan Baiki Sistem Cukai Negara

November 28, 2013

GEORGETOWN – Rakyat harus bersikap adil dan memberi peluang kepada kerajaan untuk menerang dan menjelaskan mengenai pelaksanaan Cukai Barangan dan Perkhidmatan (GST) ke peringkat akar umbi dalam usaha menambah baik sistem percukaian negara.

Pegawai Kemajuan Negeri Unit Penyelarasan dan Pelaksanaan (ICU) Jabatan Perdana Menteri, Syed Shaari Syed Abdullah berkata rakyat perlu memberi masa dan ruang kepada kerajaan untuk memperjelas perkara itu dan jangan mudah mempercayai tohmahan pihak tertentu.

“Kalau kita lihat di negara mana pun memang GST ini satu sistem yang lebih adil. Cuma di negara kita ni kita belum biasa lagi, jadi adalah berbagai tohmahan. Semua orang tak suka dikenakan cukai. Kalau boleh nak jadi macam Brunei tidak payah dikenakan cukai.

“Kerajaan sedang mengkaji pelaksanaan GST ini. Sebab itu, kerajaan mengambil masa untuk melaksanakannya. Kita pun kena ‘adil’ kepada kerajaan, bagi peluang untuk memperbaiki sistem ini,” katanya kepada pemberita selepas merasmikan Taklimat GST bertajuk ‘Memperteguh Ketahanan Ekonomi, Memperkasa Transformasi dan Melaksanakan Janji’, di sini hari ini.

Turut hadir Pengarah Jabatan Penerangan Negeri Ishak Abdullah.

Kira-kira 300 peserta daripada jabatan dan agensi kerajaan, pemimpin masyarakat dan Komuniti 1Malaysia menghadiri taklimat anjuran bersama anjuran bersama Pejabat Pembangunan Persekutuan Pulau Pinang dan Jabatan Penerangan Pulau Pinang itu.

Sementara itu, Ishak berkata sesi penerangan pelaksanaan GST itu akan berterusan dari semasa ke semasa dan memfokuskan kepada penjawat awam kerana mereka adalah jurucakap tidak langsung kerajaan.

Beliau berkata sesi penerangan di peringkat akar umbi akan dibuat dalam skala yang lebih kecil menerusi pertubuhan bukan kerajaan di bawah jabatan itu iaitu Komuniti 1Malaysia. – BERNAMA

GST implementation a smart decision – SUCCC

Posted on November 28, 2013, Thursday

KOTA KINABALU: The implementation of the Goods and Services Tax (GST) starting April 1, 2015 is beneficial to the country as it is a perpetual source of income which will increase our country’s wealth.

Sabah United Chinese Chambers of Commerce (SUCCC) president Datuk Seri Panglima Gan Sau Wah said the implementation of the GST could strengthen our economy, making Malaysia a stronger nation.

He said Prime Minister Datuk Seri Najib Tun Razak’s announcement to implement the GST was a smart and wise decision.

“Among our six Prime Ministers, Najib is the one who has the vision and good financial management,” he added.

Gan said 90 per cent of America and the European countries had implemented the GST, likewise with Singapore and Thailand in South East Asia.

“If Malaysia is to achieve a developed nation status by 2020, we must implement GST,” he said in a press conference here yesterday.

He said the implementation of the GST was fair to all races, as all races must pay the GST.

“As for other taxes … Malaysia has more than 10 million people doing businesses but only around one million are paying income tax.

“Income tax alone is insufficient to sustain our country.”

With the implementation of the GST, Gan said the government would abolish the six per cent services tax.

In addition, he said Najib had announced that personal income tax would decrease between one and three per cent while corporate income tax would be reduced by one per cent.

“Under these circumstances, the people will not be affected much, nor is the GST an unfair policy.

“The SUCCC fully supports the government policy.”

Asked if the GST would affect the low income group, Gan said there were up to 200 goods such as essential items that were free from GST.

Furthermore, individuals earning RM4,000 and below monthly need not pay income tax.

“The government also has the 1Malaysia People’s Aid (BR1M) to assist the low income group so that they do not feel pressured.”

He added that rich people who spend more would pay more GST, while poor people who spend little would not be affected much.

As to whether the implementation of GST would cause inflation, Gan explained that inflation was a phenomenon caused by global economy and Malaysia was not immune to the impacts brought about by the world economy.

“Inflation is not caused by GST, it can be due to increase in population, competition and weak currency.”

Gan pointed out that no one had complained when the government abolished the subsidy for sugar, nor did it stop people from buying sugar.

Gan quoted Najib, who had said that tax evaders were traitors, adding that good citizens would discharge their responsibility and pay taxes.

“The richest company in Malaysia is Petronas and our country needs Petronas’ support.

“But one day we will exhaust our oil supply, whilst the GST is a perpetual and stable source of income,” he said.

Also present at the press conference were SUCCC secretary general Datuk Ling Tiong Chai, treasurer general Datuk Yap Yiw Sin, Tambunan Chinese Chamber of Commerce president Lt Kol (K) Dato’ Oi Thiam Beng and SUCCC members.

GST net gain may be less, says tax expert

| November 28, 2013

The collection will be affected by government's move to reduce income taxes and how it will respond to corporates which are seeking to expand the zero duty list.

by Tanu Pandey

PETALING JAYA: A tax expert said the Goods and Services Tax (GST) may not increase overall government revenues as much as expected because any collection will be affected by the lowering of the income tax and how the government react to lobbying from businesses to expand the zero duty list.

The GST, which is to come into force in April 2015, will replace the indirect taxes like Sales and Service Tax and impose a common tax at 6% on a host of items, even on many that have escaped any duty till now.

However, there will be many essential items like food which will be exempt from GST or be in the zero-rated list.

“There will be more lobbying to get items into the zero-rating. Also, it is quite strange that the prime minister or some other ministers said we are ready to listen if someone wants to get some goods in zero-rating. That may be politically correct but is a highly risky act if that happens,” Taxand Malaysia Sdn Bhd chairman Veerinderjeet Singh told The Malaysian Reserve yesterday.

Veerinderjeet was speaking to the newspaper on the sidelines of Malaysian Institute of Accountants Conference 2013 in Kuala Lumpur where he was also among the panel members and other delegates from the accounting profession who were attending the twoday conference. The conference ended yesterday.

GST is expected to contribute about RM6 billion in addition to the current earnings of RM16 billion to the exchequer from indirect taxes. “Net gain from GST will be less…At the end of the day it is not going to be a substantial increase,” he said.

In preparation for bringing about GST in the country, the government reduced corporate income tax rates to 24% in 2016 from current 25% and personal income tax rate reduced by 1% to 3% starting 2015.

Terming the income tax reduction as a “bold step” from the government, he said, “It is not necessary we could reduce it later. We need to see how GST works because it takes a few years for the issues, anomalies and perceptions to be cleared (on GST).”

In fact, about the opposition from the business community on GST, he pointed out that it happened as the government failed to educate and inform.

“The public relations policy of the government needs to be really looked at. That was why in the five years, since 2007 when the GST came into discussion, we have allowed a lot of misconceptions to grow in the minds of the people and now it is a challenge to try and erase those perceptions. We could have done it better,” he said.

Meanwhile, Veerinderjeet expected Malaysia’s corporate income tax rate and maximum personal income tax rate reduced to 20% by 2020 while GST will be raised to 10%.

PM has failed to look into our welfare

| November 27, 2013

The price of everything has gone up since the general election but the prime minister is not listening to the people or looking into their welfare.

Since the conclusion of the 13th general election, prices of goods have been periodically going up and so far nothing has been done to counter this. Instead the situation has only gotten worse with the impending hike in electricity tariff early next year.

Before GE13, Prime Minister Najib Tun Razak has promised that he will listen to the voice of the people and look into their welfare. Thus, the sky-rocketting cost of living is certainly not in line with his promise.

He has always accused the opposition of not keeping their promises but here it is the case of the pot calling the kettle black.

And it is much worse for him because he is the Prime Minister whereas the opposition does not have recourse to federal funding.

Definitely many people can now see clearly that he is a promise-breaker although there are just as many gullible citizens who is simply enamoured with his Government Transformation Plan (GTP), including one of this columnist’s relatives who praised the GTP as being very ambitious and pro-active in helping the rakyat.

If Najib is really listening to the rakyat, he would have immediately instructed KL City Hall to lower the assessment hike to not more than 20%. Instead, he acts deaf and dumb to the rakyat’s rumblings on the ground.

A local English daily on Nov 22 has reported Federal Territories Minister Tengku Adnan Mansor as saying: “I will be fair and come up with a win-win situation for the people. I will decide on an appropriate rate that we will charge and I promise you it will not burden the rakyat.”

Let us hold him to his promise. We do not want leaders who simply give empty promises as the BN government has always announced with pride that they are a caring government.

However, in the recently concluded PAS Muktamar, a resolution was passed that PAS will organise a big protest against the GST (Goods & Services Tax), TPPA (Trans-Pacific Partnership Agreement) and the general rise in the cost of living. This is good and perhaps then the government will wake up to the fact that the rakyat are angry.

So far, after the general election there is nothing much to rejoice about. The corrupted sharks are still swimming about, crime is still on the rise, the national debt has increased, higher taxes will be imposed and the ordinary citizens have to cope with the higher cost of living.

Yes, the rakyat are indeed unhappy

Not in sync

Pakatan Rakyat MPs raising the issue of the Prime Minister’s RM2.2 million electricity bill for his official residence have certainly annoyed the latter but the issue is important.

Why is the Prime Minister telling the rakyat to tighten our belts when he himself is spending lavishly? He has certainly lost credibility due to his shocking electricity bill.

He has also said that those who evade taxes are traitors to the nation. If he is hinting at the KL folks who are against the assessment hike, then he has totally lost the point.

KL folks are only protesting the ridiculously massive hike, nobody ever said that they do not want to pay. This shows that Najib is not listening to the rakyat at all.

In the meantime, in a recent press conference earlier this month, PKR’s Lembah Pantai MP Nurul Izzah Anwar has revealed that there are 30 Special Branch (SB) officers in London.

What are they doing in London? Do they intend to stem the flow of real, true and accurate information from Malaysians in UK to Malaysians back home?

Now we know that although the government is not listening to the rakyat, they are listening in on the rakyat.

“I don’t want to listen to the economy being robust and resilient when I am struggling to make ends meet,” said Peter Chong, who works in the retail sector.

Chong said Najib was a failure especially in not listening to the Chinese and thus he should not be angry if the community rejected BN.

He listed three major points for Najib to take note:
  • According to the population ratio, more Chinese voted for PAS compared with the Malays;
  • The Chinese say that the BN government is hopeless and is mired deep in mismanagement; and
  • More Chinese will be migrating soon which means that Malaysia will experience a greater brain-drain.
At the end of the day, it is clearly obvious that despite all the hype, Najib is not in touch with the pulse of the rakyat despite constantly saying that he is.

Those who think that he is doing a good job as a Prime Minister fail to see that his proclamation of BN as a caring government is in direct contrast with his actions.

Najib and the rakyat are not really in sync. He is only in sync with the Umno members and his elite cronies.

Selena Tay is a DAP member and a FMT columnist.

How to fix Malaysia in five easy steps

November 26, 2013
FMT LETTER: From Vivegavalen Vadi Valu, via e-mail

You often read about the never ending issues ailing our country and sometimes we get tired and frustrated by the politicians who run the country. The thing is, have you stopped to think that all our problems actually are a repeated cycle and can be solved easily?

Today, the Prime Minister is quoted to say “it’s either GST or face bankruptcy”. Now, while the statement may seem exaggerated it is not that far off the actual reality facing Malaysia’s looming economic disaster.

In 1993, the World Bank produced a 400-page report on the Asian Economies, and Malaysia was dubbed the ‘Tiger of Asia’ with an annual growth of 9% in comparison with South Korea’s 6% and Singapore’s 7%.

Our GDP per capita stood at US$350 in contrast to South Korea’s US$130. Foreign Direct Investment (FDI) was also at its highest of US$7.3 billion, whereas our market capitalisation was ranked 1st in Asia at 14.6% (excluding Japan).

Fast forward to the present, Malaysia has never recovered from the Asian Financial Crisis of 1997, and since then we have fallen behind Singapore, South Korea and Hong Kong, and now sits on par with Indonesia and Philippines.

While both Singapore and Hong Kong built up their portfolios by providing lucrative incentives and a favourable environment for investors to do business, Malaysia’s stock exchange recorded a drop in listings from 1,025 companies to 976 in 2009.

The final blow came from the World Investment Report 2010, which stated that Malaysia suffered a staggering 81.1% drop in FDI compared to Thailand’s 30.4% and Indonesia’s 44.7%.

This shocking indictment of the current economic state of our country should come as no surprise, for it was revealed that as of June 30, 2011, the country’s debt stands at 54% wherein if it touches 55%, the constitution will have to be altered to increase borrowings, and we may face a similar disposition as Greece and opt for a bailout.

As Malaysia continues to be ploughed under debts, the Government continues to spend lavishly, ignoring the economic climate to ensure that power remains in their hands. Most notably, petrol and sugar prices both respectively being subsidised have been kept in check although being distorted by market value. The question that begs to be answered is why, as petroleum producers, we currently face this deplorable situation?

The New Economic Model (NEM) proposed by the Prime Minister in the first year of his regime failed to curb our decline as he released Part 1 which effectively was rendered useless as we continued the implementation of the New Economic Policy (NEP) which advocates racial-policies instead of merit based policies albeit using the backdoor. The 30% quota for tenders and projects reserved exclusively for Bumiputera’s continued and this further added to wounds of the economy.

Furthermore, the country’s Corruption Perception Index (CPI) stands at #54 below countries like Rwanda while Singapore sits at #5. The perceived illicit outflow per annum stands at RM30 billion and it should therefore come as no surprise that the implementation of GST is a must as we can ill afford to depend on Petronas.

The crux of the matter here is mismanagement and corruption, nothing more and nothing less and the generation that will pay the ultimate price will be mine and yours. Then, how do we fix Malaysia?
  • Absolute judicial independence, practising proper separation of powers among the Executive, Judiciary and Legislature plus a shadow cabinet with funding allocated to provide for proper check and balance.
  • Revamp the MACC and PDRM with an independent commission reviewing abuse of powers to ensure those who are put in place to serve the people do just that instead of serving those who sign their monthly pay slips.
  • De-regularise government purchases, practice transparency with ethics and ensure total open tenders with documents of sale and purchase being made public.
  • Improving the education system with globalisation and pro-employment reforms with special emphasis given to children from rural areas, especially those from Sabah and Sarawak.
  • The banning of all racial politics and policies with maximum punishment meted out for repeat offenders. Enough of the bullshit that racism begins at home, it is time we implement a non-partisan and merit based system for all.
The question then is why isn’t it being done if it is in fact that easy? Politics. It does not matter if it is Barisan Nasional or Pakatan Rakyat, none gives a two hoot about the rakyat public save maybe a few. What can you do about it? Simple, citizen activism – reclaim your rights and powers, as demanding for change will not suffice.

‘PM must explain if we are next Greece’

| November 26, 2013

Prime Minister Najib must come clean in explaining the true financial situation of the country; and not hide behind the GST.

KUALA LUMPUR: Pandan MP Rafizi Ramli has urged Prime Minister Najib Tun Razak to clarify on the country’s financial position, and further described that the government can no longer hide the reality that it was now facing fiscal downfall.

The PKR strategy director then questioned the reversal made by the Deputy Finance Minister Ahmad Maslan during yesterday’s parliament session when he said that Malaysia was still stable economically despite Najib mentioning that Malaysia was facing bankruptcy just a day earlier.

“Which is which? Are we going bankrupt or not?”

“Yesterday Ahmad Maslan said in the parliament that our economy is stable but his statements are contradicting with Najib’s,” said Rafizi.

Speaking at the parliament’s lobby this afternoon, he then said that Najib’s plan to avoid bankruptcy by implementing GST does not make any sense, citing Greece as an example. He said Greece which went bust despite implementing the Goods and Service Tax (GST).

“GST is not the cure for our economical instability. Our country is going bankrupt not because we don’t implement GST.

“Greece had GST and went bankrupt but the real issue is we fail to detect the real problem behind our financial problem,” he said.

“Corruption is rampant and we are over-spending our money on unnecessary stuff. GST is not a miracle cure and we fail to reinvent a better system to help our finances,” he said.

Rafizi added that Najib should be more consistent in his views and should be vocal to inform the public about Malaysia’s financial position.

“We need a firm answer from Najib. If we are stable then why we need GST?,” he asked.

“Thus the government can no longer keep quiet on this matter. Najib has to speak out and let the people be informed.”

The GST will come into effect starting April 1, 2015 at a rate of 6%.This was announced by Najib when tabling the 2014 budget in October.