HIGHLIGHTS FROM BUDGET 2011

• Service tax will be increased from 5% to 6% and to cover pay television services – bad news for Astro, restaurants and the hospitality sector;
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• EPF and Permodalan Nasional Berhad will undertake RM10bn Sungai Buloh housing projects and RM5bn 100 storey tower respectively – good for property sector;
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• First time house buyers will obtain a 100% loan without having to pay the 10% down payment for houses below RM220k through “Skim Rumah Pertamaku” and given stamp duty exemption of 50% for houses not exceeding RM350k – good for property sector;
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• Full import duty and 50% excise duty exemption was granted to franchise holders of hybrid and motorcycles up to 2010 and full excise duty exemption up to 2011 – good for UMW and Honda but bad for local manufacturer, Proton;
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• Import duty of 300 goods preferred by tourists and locals, at 5% to 30% will be abolished – good for retailers and shopping mall operators;
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• Sales tax of 10% will be abolished for all mobile phones – good for all the telecommunication companies;
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• RM6.4bn to build and upgrade schools, RM213m allocated to high performance schools, increase pre-school enrolment rate to 72% through additional 1,700 classes, RM575m for scholarships, RM213m to strengthen language skills – good for education sector;
• Government to introduce minimum wage rate and increase the levy for foreign workers – bad for businesses generally as cost will increase;
• Toll rates in 4 highways operated by PLUS Expressway will not be raised for the next 5 years – bad for toll operators, setting precedent that no toll hikes for other operators;
• Three new stock-broking licenses will be introduced for locals and foreigners – bad for stockbrokers as competition will intensify.

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.

IRB hotline to open on Friday

KUALA LUMPUR: The Inland Re­­­­­venue Board will open its 2011 Budget Special Hotline Operations Centre on Friday from 7pm to 10pm.

“This will allow the public to obtain further information on any tax-related issues after the delivery of the budget speech by Prime Minister Datuk Seri Najib Tun Razak,” it said in a statement yesterday.

The public can call the following numbers for enquiries: 03-62015975/976/981 and 03-62016027/031/035/037/041. – Bernama

http://thestar.com.my/news/story.asp?file=/2010/10/13/nation/7212110&sec=nation

Employment Bill withdrawn

The Employment (Amend­ment) Bill 2010, which was listed for second reading in the Dewan Rakyat, has been withdrawn.

Deputy Human Resources Minister Datuk Maznah Mazlan withdrew the bill, which was first tabled on July 8.

When contacted yesterday, Human Re­­sources Minister Datuk Dr S. Subramaniam said the bill was withdrawn to enable the ministry to initiate changes and add more amendments.

He added that the bill would be re-tabled during this Parliament sitting.

To a question, Dr Subramaniam denied that the bill’s withdrawal was related to a nationwide picket organised by Parti Sosialis Malaysia (PSM) in seven places yesterday.

PSM had called for a picket to reject the proposed amendments of the bill and described them as the worst amendments made to labour laws.

Among the proposed amendments to the Bill included a move to fine employers up to RM10,000 for turning a blind eye to sexual harassment, provide better protection to pregnant workers and penalise employers who terminate the services of women employees during their maternity leave.

The bill also stipulates that wages of domestic helpers would have to be paid directly into their bank accounts.

The proposed amendments were met with differing opinions by NGOs and employers.

The MTUC supported the amendments of sexual harassment as such cases were usually ignored when a high-ranking personnel was involved.

The Malaysian Employers Federation said the bill on sexual harassment gave the impression that employers did not care about the problem.

Meanwhile, M. Kulasegaran (DAP - Ipoh Barat) has called for a review of the Industrial Relations Act 1967.

He said present regulations gave sole power to the Human Resources Minister to decide whether to refer a case to the Industrial Relations Court.

“The minister is the prosecutor, judge and jury. We feel that is not right,” he told reporters at the Parliament lobby.

Kulasegaran said aggrieved employees should be allowed to institute legal action against their employers freely, just as in civil suits.

Abdullah Sani Abdul Hamid (PKR - Kuala Langat) and M. Manogaran (DAP - Teluk Intan) called for a review of Section 20 (3) of the Industrial Relations Act, which gave the minister discretion to refer cases to the court.

http://thestar.com.my/news/story.asp?file=/2010/10/13/parliament/7210907&sec=parliament

Employment Act (Amendment) Bill Withdrawn

KUALA LUMPUR, Oct 12 (Bernama) -- The government pulled back the Employment Act (Amendment) Bill 2010 which was due for second reading at the Dewan Rakyat Tuesday.

The withdrawal was announced by Deputy Human Resources Minister Datuk Maznah Mazlan.

Human Resources Minister Datuk Dr S. Subramaniam, when contacted, said the withdrawal was made to enable several changes to be made and provisions to be added.

He denied that the withdrawal was prompted by the proposed pickets by Parti Sosialis Malaysia (PSM) at seven locations to air its objection against several bills proposed by the ministry.

Subramaniam said the Employment Act (Amendment) Bill would be tabled again after the changes were made.

The bill, which was tabled for first reading on July 8, among others, covered sexual harassment, welfare and domestic help.

http://malaysianlaw.my/newsitem.aspx?id=MLTIC-131010-LN-11&Cateid=1&Title=Employment Act (Amendment) Bill Withdrawn

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.