theSun | THURSDAY OCTOBER 15 2009
business
MIER expects corporate
and personal tax cuts
KUALA LUMPUR: Corporate and indi-
vidual taxes are likely to be reduced by
1-2% in the 2010 Budget, according to the
Malaysian Institute of Economic Research
(MIER).
The reduction would not affect the
government’s revenue, MIER executive
director Datuk Dr Mohamed Ariff Abdul
Kareem said at a press conference here
yesterday.
“Since 2010 will be a better year than
this year, then shaving off the tax rates
may be offset by increased income base.
So I don’t think it will affect government’s
revenue,” he said when presenting a report
on MIER’s economic outlook for the third
quarter 2009.
Corporate tax is currently at 25%
while individual income tax is at 12% for
chargeable income exceeding RM35,000 to
‘Ringgit to strengthen to 3.30 against greenback next year’
KUALA LUMPUR: The Malaysian Institute of
Economic Research (MIER) expects the ringgit
to strengthen against the US dollar to around
3.30 next year with the greenback continuing
to weaken in regional and global markets.
The ringgit has been hovering at 3.3880 to
the US dollar.
MIER executive director Datuk Dr Moham-
ed Ariff Abdul Kareem told a media briefing
yesterday the ringgit is still undervalued with
more room to grow in the medium term by
2012 and possibly touching 3.00 per dollar.
RM50,000.
Mohamed Ariff said the tax reduction
would have positive impact on the economy
as well as investors.
This, he said, was very much in sync
with the country’s long-term goals and
Prime Minister Datuk Seri Najib Razak’s
liberalisation policy.
“It is the kind of tonic that the economy
needs,” he added.
For instance, Malaysia’s corporate tax
is higher than its neighbours and reducing
it to be close to that of its competitors will
boost investors’ interest, Mohamed Ariff
said.
This will also augur well with Malay-
sia’s plan to become a regional hub for
investment activities, he said.
Asked whether such a reduction was
in preparation for the introduction of the
He said the local currency has not been
appreciating as much as other regional cur-
rencies despite the continuing downtrend.
From Aug 1 to Sept 29, the ringgit ap-
preciated by 0.9% vis-a-vis US dollar, due to
favourable investor sentiment and increased
risk appetite towards high-yielding regional
currencies.
The ringgit opened higher against the US
dollar yesterday at 3.3880, from 3.3900 on
Tuesday on commercial buying support as
well as positive sentiment on the local stock
Goods and Services Tax (GST), Mohamed
Ariff said: “It could be.”
He said GST taxed on consumption and
not income, thus providing an incentive for
people to work harder and earn more.
“In Malaysia, there is a need for GST
because the number of people paying tax
is small, so everybody will chip in. Every-
body is contributing because everybody is
consuming. So the tax base gets bigger,”
Mohamed Ariff said.
“The more you consume, the more you
pay, so in that sense it is not regressive ... it’s
a kind of harbinger,” he said.
While seeing the need for tax reforms
to diversify the tax basket, Mohamed Ariff
felt the government was not prepared to
introduce the GST at the coming budget.
He said it could, however, be included in
the 2011 or 2012 Budget. – Bernama
market and regional bourses, dealers said.
Mohamed Ariff said the monetary policy
stance is expected to be fairly commutative
for remainder of the year, facilitated also by
the absence of inflationary expectations in
the near term.
Hence, the MIER expects the Overnight
Policy Rate (OPR) to be relatively unchanged
at least until 2010 or when the economy
recovers, both domestically and externally,
he said.
Currently, the OPR is at 2%. – Bernama
13
Sime Darby signs
Islamic programmes
KUALA LUMPUR: Sime Darby Bhd has
successfully signed Islamic programmes
yesterday, where the proceeds will be use for
acquisitions and capital expenditure, working
capital requirements as well as to refinance
certain debt obligations.
In a statement, lead arranger Maybank
Investment Bank Bhd said it involved Islamic
Medium-Term Note (IMTN) Programme of
RM4.5 billion and Islamic Commercial Paper
(ICP)/Islamic Medium Term Note Programme of
RM500 million with a Combined Master Limit
of RM4.500 billion.
The ICP/IMTN Programmes are collectively
known as the Islamic programmes.
Maybank president and chief executive
officer Datuk Seri Abdul Wahid Omar said the
financial group was proud to be working on this
Video transaction to assist Sime Darby in meeting its
medium- to long-term funding requirements.
nasties He said the strength of the AAA-rated
the key to Islamic Programmes reflected Sime Darby’s
England’s position as a leading conglomerate and the
world’s largest listed oil palm plantation group.
success – Bernama
pg 26
TM upbeat on Streamyx
user target in Sabah
KOTA KINABALU: Telekom Malaysia Bhd (TM)
is confident of reaching the 85,000 mark for
its Streamyx broadband subscribers in Sabah
by year-end, said its general manager for the
state, Sukkuriya Masri.
Speaking to reporters at the Hari Raya
gathering with TM Sabah yesterday, he said to
achieve this, the company had to recruit only
another 5,000 subscribers as it had 80,000 at
present.
“We maintained our last year’s target of
20,000 new Streamyx subscribers annually.
We have recorded 15,000 new subscribers
to date, so we are confident of reaching the
target. – Bernama