The Inland Revenue Board has issued the latest list of business codes.

New Business Code 

New Coins Series issued into Circulation from 16 Jan

Bank Negara Malaysia has announced that the new Malaysian coins series will be issued into circulation from 16 January 2012 onwards. Members of the public will be able to obtain these new coins through their normal business transactions. 

The new coins to be introduced into circulation in phases are legal tender and will co-circulate with the existing series. The existing series will be gradually phased out. In ensuring a smooth transition to the new coins series, machine vendors had been given sufficient time to calibrate their machines to accept these new coins. 

Themed 'Distinctively Malaysia', the new coins series draws inspiration from distinctive features that define the nation's rich culture and heritage. The design motifs were crafted in the form of nature, flora and fauna and traditional handicraft which is found in Malaysia. The new coins series are in the denominations of 5 sen, 10 sen, 20 sen and 50 sen.

The new coins are smaller and lighter making it more user-friendly for the public. The yellow and silver coloured coins enable the public to easily distinguish the different denominations. The edged designs and the different sizes will facilitate the visually impaired to identify and differentiate the denominations. In addition, latest advancements in minting technology which incorporates improved counterfeit resistance security features are embodied in the new coins series. The new metal alloy used for minting has enhanced durability against wear and corrosion. 

For further information on the new coins series, members of the public can contact BNMTELELINK at 1-300-88-5465 or call 03 - 2698 8044 ext 8658 or visit Bank Negara Malaysia's website at www.bnm.gov.my.

Guidelines on the Implementation of Service Tax Imposition based on Budget 2011

Guidelines on the Implementation of Service Tax Imposition based on Budget 2011 has been released.

[Click here to view the full text]

Business registration reduced to one day via online

KUALA LUMPUR: Those who want to set up businesses can now simultaneously register with five government agencies online and complete the process within a day compared to 11 days previously.

The Malaysia Corporate Identity Number or MyCoID’s gateway system which was launched yesterday would also see information being transferred electronically without requiring a person to physically head to the five government agencies to register their business as is the current practice.

Prime Minister Datuk Seri Najib Tun Razak said the implementation of the MyCoID gateway system would help boost the country’s competitiveness globally, improve the delivery system and reduce the number of processes from nine to one.

“The concept is easy, quick and effective. Registration with various agencies is done through a one-touch point,” said Najib, whose speech was read out by Domestic Trade, Cooperatives and Consu?merism Minister Datuk Seri Ismail Sabri Yaakob.

Najib said the system would also help improve Malaysia’s ranking with the World Bank’s “Doing Business” category from the current 23rd spot to 17 by next year.

On the price of RON97 petrol, Ismail said: “There is no reason for the people to panic or worry as over 90% of motorists use RON95 which is still at RM1.85 per litre,” he said yesterday after launching the Malay?sia Corporate Identity Number or MyCoID’s second phase gateway system.

Ismail Sabri was commenting on the increase of RON97 petrol by 5 sen to RM2.15 per litre effective on Tuesday.

He also said the RON97 pricing would change every first of the month with oil companies having the option to increase the full amount or absorb some of the cost to create a healthy battle with their competitors.

On whether the prices of RON95 would be increased, Ismail Sabri said he did not expect it to increase this year, adding that such decisions were subject to Cabinet approval.

http://thestar.com.my/news/story.asp?file=/2010/11/4/nation/7359289&sec=nation

Stamp Duty Exemption on Housing Loans/ Transfer Agreements

KUALA LUMPUR, Oct 15 (Bernama) -- In an effort to ensure every citizen owns a residential property, the government has proposed stamp duty exemption on instruments of transfer and loan agreements for residential property.

To encourage ownership of the first residential property, it has proposed that a stamp duty exemption of 50 per cent be given on instruments of transfer of a residential property priced not exceeding RM350,000.

The exemption is granted for the first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period, Prime Minister, Datuk Seri Najib Tun Razak said on Friday.

Residential properties include terrace houses, condominiums, apartments or flats, he said when tabling the Budget 2011 at Parliament here.

The effective date for the exemption is for sales and purchase agreements executed between Jan 1, 2011 and Dec 31, 2012, said Najib.

As for the stamp duty exemption on loan agreements for residential property, he said there would be also a stamp duty exemption of 50 per cent for residential property prices not exceeding RM350,000.

This exemption is applicable for sales and purchase agreements executed from Jan 1, 2011 to Dec 31, 2012.

http://malaysianlaw.my/newsitem.aspx?id=MLTIC-161010-LN-10&Cateid=1&Title=Stamp Duty Exemption on Housing Loans/ Transfer Agreements

Service Tax increases to Six Per Cent

KUALA LUMPUR, Oct 15 (Bernama) -- The government has proposed that the service tax on all taxable services be increased to six per cent from five at present to generate additional tax revenue for national development.

The effective date of implementation of the proposal is Jan 1, 2011, it was stated in the Budget 2011 proposals tabled in Parliament Friday.

This rate is not applicable to credit cards where the service tax is charged at a specific rate of RM50 annually on principal cards and RM25 for supplementary cards.

http://malaysianlaw.my/newsitem.aspx?id=MLTIC-161010-LN-11&Cateid=1&Title=Service Tax increases to Six Per Cent

News on Budget 2011 with Full Text of Speech, Attachments and Finance Bill

KUALA LUMPUR, Oct 15 (Bernama) -- Datuk Seri Najib Tun Razak on Friday tabled a RM212-billion budget for 2011 centred on four key strategies designed to transform Malaysia into a developed and high-income nation by 2020.

Tabling Budget 2011 in the Dewan Rakyat, he said the budget would emphasise efforts to "transform the national into a developed and high-income economy with inclusive and sustainable development, spearheaded by the private sector as well as focus on the well-being of the people".

Najib, who is also the finance minister, described the budget as laying the foundation for Malaysia to become an advanced nation and as a precursor "in our final efforts" towards achieving Vision 2020, which he said was nine years, two months and 17 days away.

The budget, which carries the theme "Transformation Towards a Developed and High-Income Nation", centres on four key strategies, which are Reinvigorating Private Investment; Intensifying Human Capital Development; Enhancing Quality of Life of the People; and Strengthening Public Service Delivery.

The prime minister said that to enhance private sector involvement in economic activities, the government would further intensify the Public-Private Partnership (PPP) initiative and implement in 2011 several PPP projects identified under the 10th Malaysia Plan through private investment of RM12.5 billion. The government would allocate RM1 billion from the Facilitation Fund.

Among the PPP projects are the Ampang-Cheras-Pandan Elevated Highway, Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, West Coast-Banting-Taiping Highway, Sungai Dua-Juru Highway and Paroi-Senawang-KLIA Highway;

A 300-megawatt Combined-Cycle Gas Power Plant in Kimanis, Sabah, to increase electricity generation capacity to meet rising demand; and

The International Islamic University Malaysia Teaching Hospital in Kuantan, the Women and Children's Hospital as well as the Integrated Health Research Institute Complex in Kuala Lumpur;

The Academic Medical Centre, a joint venture between Academic Medical Centre Sdn Bhd and Johns Hopkins Medicine International as well as Royal College of Surgeons Ireland which involves private investment of RM2 billion.

Najib also said that the government would encourage the private sector to resume an active role in the economy through several high-impact strategic projects.

These projects included the Kuala Lumpur International Financial District (KLIFD) valued at RM26 billion, which would be implemented from 2011 by 1Malaysia Development Berhad (1MDB) in collaboration with Mubadala Development Company, an investment arm of the Government of Abu Dhabi.

Also, under the High-Impact Strategic Development, Najib announced the development of another landmark in Kuala Lumpur, a 100-storey tower to be named Wisma Merdeka.

The integrated development project costing RM5 billion will retain the Merdeka and Negara stadiums as national heritage. The tower will be completed by 2015 and the whole project by 2020.

Najib also said that the Mass Rapid Transit (MRT) in Greater Kuala Lumpur (Klang Valley), with an estimated private investment of RM40 billion, would be implemented from beginning 2011 and was expected to be completed by 2020.

Also to be implemented beginning next year is the development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres by the Employees Provident Fund (EPF). It would be a mixed development comprising affordable houses as well as commercial, industrial and infrastructure facilities.

The entire development is estimated at RM10 billion and is expected to be completed by 2025.

Budget 2011, which allocated RM162.8 billion for operating expenditure and RM49.2 billion for development expenditure, also outlines strategies and incentives to revitalise the capital market, including the Islamic capital market, and intensify the venture capital industry.

As part of the effort to reinvigorate private investment, Najib also said that the Bumiputera Property Trust Foundation (BPTF) would provide opportunities for bumiputera ownership of prime commercial properties in major towns.

"The BPTF will establish a fund to enable ownership of prime commercial properties in the Klang Valley, through a group ownership scheme," he said.

For this, he said, the BPTF would launch a syariah-compliant Bumiputera Property Trust Scheme this year with a size of RM1 billion.

The government would also launch a Private Pension Fund next year to revitalise capital market activities.

"This fund will benefit private sector employees and the self-employed," Najib said, adding that the existing income tax relief of up to RM6,000 for employees' contributions to the EPF would be extended to the contributions made to the pension fund, including the self-employed.

Under the strategy of intensifying human capital development, the prime minister said the government would establish Talent Corporation under the Prime Minister's Office early next year. Talent Corporation will formulate a National Talent Blueprint and develop an expert workforce database as well as collaborate closely with talent networks globally.

Najib also said that the government would expand access to quality education, and the national education system would be revamped to focus on thinking skills, character building, creativity, innovation and competitiveness.

"For the Ministry of Education, a sum of RM6.4 billion is allocated for development expenditure to build and upgrade schools, hostels, facilities and equipment, as well as to uphold the status of the teaching profession," he said.

The government would strengthen early education, primary and secondary education and higher education and intensify training and skills programmes.

Najib also announced the 1Malaysia Training Programme which would begin in January next year with an allocation of RM500 million.

Of the sum, RM200 million is allocated to conduct part-time training in the evenings and weekends at selected training centres nationwide. It will be conducted by community colleges, national youth training institutes, Giat Mara centres and industrial training institutes.

Najib also said that the government was committed to expediting the transformation process through implementation of the projects and programmes under the 10th Malaysia Plan, the National Key Results Areas (NKRAs) and the National Key Economic Areas (NKEAs).

He said the transformation process was holistic, encompassing economic, social and political aspects.

"The 2011 Budget is formulated with firm determination to bring significant changes to the nation's development and well-being of the people," he said, adding that the budget had taken into account the needs of all the people of Malaysia.

"This budget is possible due to the efficient and prudent financial management thus far," he said.

Najib said the government upheld the concept of 1Malaysia as the fundamental philosophy in driving the nation's development path. "The Government Transformation Programme (GTP) and Economic Transformation Programme (ETP) will be a guiding force in this journey," he added.

"The six NKRAs and the New Economic Model with its eight Strategic Reform Initiatives will be the framework for the nation's economic transformation," he said, adding that the implementation of the development programmes would be realised through the 10th and 11th Malaysia plans.

Under the strategy to intensify human capital development, Najib announced the establishment of a National Wage Consultation Council as the main platform for wage determination to raise productivity.

The council will comprise representatives from employers, trade unions, non-unionised employees, government agencies, academia, NGOs and individuals. Its secretariat will be at the Human Resources Ministry.

Najib said the National Wage Consultation Council would determine the rate and mechanism of minimum wage.

Other measures to intensify human capital development include expanding women's participation in entrepreneurship and intensifying training and skills programmes.

Under the third strategy of enhancing the quality of life of the people, the government will, among other things, allocate RM1.2 billion to the Women, Family and Community Development Ministry to carry out various welfare and community programmes.

The government would also increase house ownership and enhance the quality of life of the rural people, said Najib.

A sum of RM6.9 billion is allocated for the implementation of basic infrastructure such as water supply, electricity, and rural roads.

Of the amount, RM2.1 billion is for the construction and upgrading of rural roads in Sabah and Sarawak, and RM696 in the peninsula.

Meanwhile, RM1.5 billion is allocated to provide rural water and electricity supply in Sabah, RM1.2 billion for Sarawak and RM556 million for the peninsula.

Najib said the government would also implement housing aid programmes for the poor and hardcore poor with an allocation of RM300 million.

This programme involved the construction and repair of 12,000 units of houses throughout the country especially in Sabah and Sarawak.

The government will also provide a Special Mobile Unit for the National Registration Department for the convenience of the people in remote areas in Sabah, Sarawak and peninsular Malaysia to register their citizenship.

Najib said the government would continue to simplify private sector transactions with the government agencies to strengthen the public service delivery.

For this purpose, the MyCoID Gateway initiative which uses the sole reference provided by the Malaysian Companies Commission for transactions would be extended to other agencies and ministries.

http://malaysianlaw.my/newsitem.aspx?id=MLTIC-161010-LN-1&Cateid=1&Title=News on Budget 2011 with Full Text of Speech, Attachments and Finance Bill

Persons with Disabilities (Registration and Issuance of Kad OKU) Regulations 2010

The Regulations amongst others provide for the application for registration as a person with disability.

P.U. (A) 344 of 2010; 7 October 2010

http://malaysianlaw.my/newsitem.aspx?id=MLTIC-161010-LG-2&Cateid=6&Title=Persons with Disabilities (Registration and Issuance of Kad OKU) Regulations 2010

Many Traders Unclear on Malaysian Competition Act

ALOR SETAR, Oct 12 (Bernama) -- Many traders are still vague on the Competition Act 2010 which will be enforced on Jan 1, 2012 although it is aimed at creating a competitive business environment.

The Head of the Interim Competition Commission Unit, Ministry of Domestic Trade, Cooperatives and Consumerism, Shila Dorai Raj, said although there was no objection from traders and members of the public on the enforcement of the act, many business associations were still concerned that the act would affect their operations.

She said that as such, the unit would intensify efforts to give briefings on the act throughout the country from time to time.

"We have conducted briefings in Sabah, Sarawak, Johor and Negeri Sembilan. Today, we are in Kedah and Penang. We were given 18 months (before January 2012) to introduce the act to the business community," she said when met after the Malaysian Competition Act 2010 Introductory Seminar attended by about 200 people, here Tuesday.

It will prevent monopolistic activities and abuse of one's dominant position.

She said the implementation of the act could attract more foreign investors into the country because the open competition gave them more confidence.

MIA-CTIM Budget Hotline for Public

Source: MLTIC

The Malaysian Institute of Accountants (MIA) in collaboration with the Chartered Tax Institute of Malaysia (CTIM) will hold the Budget Hotline 2011 which is open to the public on Saturday, 16 October 2010. The hotline will be operating from 9.00 am to 12.00 noon.

The hotline will be managed by a panel of tax consultants drawn from the major accounting firms. The main purpose of the above hotline is to provide a convenient channel for the public to seek advice from tax experts on the implication of any changes to the income tax law affecting individuals and businesses, investment incentives and other pertinent issues. The number to call is 03-2274 5055.

Single halal certificate beginning April

PUTRAJAYA: The single halal logo and certification will come into force by April next year, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

He said the draft of the amendments to the Trade Description Act 1972 that would allow for a single Malaysian halal logo and certification was finalised at a meeting between the ministry and the Islamic Development Department (Jakim) yesterday.

He said all the state religious departments had agreed to the amendments and the draft given the green light by the Attorney-General’s Chambers.

“The draft (Bill) will be tabled in Parliament later this month and we expect to have it gazetted and enforced by April next year,” he said at a joint press conference with Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom here yesterday.

One of the amendments is to standardise the issuance of the halal logo and certification in all states.

Jamil Khir said once the new logo and certification came into force, manufacturers and companies could no longer get their halal certification from private companies.

Fears have been raised in the past on the risk that certification from private agencies did not strictly adhere to standards or requirements and that enforcement and monitoring might also be lacking.

Jakim Halal Hub Division director Saimah Mukhtar said all applications for certification would be processed within a month.

She said this was made possible because the state religious departments would be empowered to conduct the necessary checks and issue the approvals on its behalf.

“This includes products for export, which previously had to be certified direct by Jakim,” she added.

Practice Direction No 5 of 2010 on Mediation

From MLTIC

The Chief Justice of Malaysia has issued a Practice Direction on mediation, which came into effect on 16 Aug 2010. According to the Practice Direction, all Judges of the High Court and its Deputy Registrar and all Judges of the Sessions Court and Magistrates and their Registrars, may “give such directions that the parties facilitate the settlement of a matter before the court by way of mediation”.

The objective of this Practice Direction is to encourage parties to arrive at an amicable settlement without having to go through, or complete, a trial or appeal.

The benefits of settling disputes by way of mediation are as follows:

* Parties are able to explore all options available;

* Underlying issues and common grounds may be identified;

* Good relationships are restored and maintained;

* Terms agreed upon would be acceptable to both parties;

* Settlement is expeditious;

* No delays in court hearings; and

* Terms of settlement are final.

The Practice Direction offers the following modes of referrals to mediation, whereby parties are given the option to select:

* Option A - Judge-led mediation; or

* Option B - By a mediator agreeable to by both parties.

Option A

This option allows for a process whereby, if agreed by parties, the Judge hearing the case will refer the case to another Judge.

In the event the mediation fails, the matter will then be referred to the original Judge to hear and complete the case. However, if mediation is successful, the Judge mediating shall record a consent judgment on the terms as agreed to by the parties.

Option B

This option allows parties to appoint a trained mediator of their preference (mutually agreed upon) to mediate the matter. At the present moment, there is a total of 236 mediators empanelled on the Bar Council Malaysian Mediation Centre (MMC). For a list of MMC mediators, kindly call Marianna Tan (03-2031 3762) or Faizal Mahat (03-2031 3003 ext 185).

Under this option, parties may, if they so desire, appoint more than one mediator to resolve their dispute.

MMC’s rates are as follows:

* Mediator’s fees: RM1,500 per day (regardless of the quantum of claim);

* Administrative fees: RM300 per case; and

* Room Rental: RM350 per day, if MMC’s premises are being utilised.

A pre-mediation conference will be conducted without any charge.

Should parties decide to engage the services of MMC, kindly complete and submit the Mediation Request Form to MMC.

Apart from the cases identified in the Practice Direction, MMC also mediates disputes in the following areas of practice:

* Landlord/Tenant;

* Hire-Purchase;

* Employment;

* Construction;

* Defamation;

* Probate & Estate;

* Conveyancing; and

* Professional Malpractice.

It is hoped that Members would take this opportunity to encourage their clients to opt for mediation and settle their disputes by way of mediation.

[...]

Ragunath Kesavan

President

Malaysian Bar

Govt mulling trading ringgit offshore to boost investments

From: MLTIC

PETALING JAYA: Malaysia could end the year with at least 6% growth based on strong domestic consumption and fairly strong external demand, said Prime Minister Datuk Seri Najib Razak.

“Yes, I believe we can achieve a robust growth this year. There is enough momentum domestically. And external demand, although there will be some sort of dampening effect, we expect it to be fairly strong,” he told CNBC’s Martin Soong in an interview yesterday.

Najib also said that the country would consider making the ringgit tradable overseas if it could bring in more foreign investment.

But he also said most investors did not view this as the key for their investment decisions.

“If we think that it’s going to help the economy, certainly we will review the situation,” he said.

The Government was monitoring the currency to ensure it reflects economic fundamentals and at the moment, the stronger ringgit doesn’t seem to be having a negative impact on exports, said Najib.

Najib, who is also Finance Minister, said the wage structure would also be reviewed, adding that an announcement would be made soon to attract Malaysian talent outside the country.

“We would have to look at the wage structure in Malaysia. I think we have undervalued human talent in Malaysia. We need to find a mechanism so that we can raise wage levels in Malaysia,” he said.

He also invited United States President Barack Obama to engage more economically with Asian countries, especially within Asean.

“This is an important region and the US cannot afford not to have a serious policy and engagement towards Asia. That should manifest itself in many ways,” he said.

Najib also said that the Government was committed to more sophisticated development policies for Sabah and Sarawak under the 10th Malaysia Plan (10MP).

“If you look at the resources we are going to allocate under the 10MP, especially with respect to the Government Transformation Programme, quite a large chunk of it will be channelled to Sarawak and Sabah,” he said.

Najib added that the Government’s objective was for more equitable development of basic transport and energy infrastructure in the two states as part of the New Economic Model (NEM).