Saturday, May 19th, 2018
KUALA LUMPUR: Companies should continue to maintain records post-abolition of Goods and Services Tax (GST), as tax audits can be expected upon deregistration, which may take place up to seven years from the time of supply, said Ernst & Young Advisory Services Sdn Bhd (E&Y).
Though the GST has been zero-rated, its rules and obligations continue to apply, including the filing of returns, issuance of tax invoices, claiming of input tax credits (where applicable) and bad debt adjustments, it said.
“Businesses need to understand the impact of zero-rating on pricing and the tax system, among others,” said E&Y Asean Tax Managing Partner, Yeo Eng Ping in a statement.
Prime Minister Tun Dr Mahathir Mohamad has issued an order for the GST to be zero-rated from June 1, 2018, to be followed by the reintroduction of the Sales and Service Tax (SST).
The transition from GST to SST would require careful management, E&Y said, adding that organisations need to deploy sufficient focus and resources to ensure a smooth transition.
“We also anticipate refinements of tax incentives to encourage the right investments in Malaysia which can spur the country's transformation into the new economy.
“It is hoped that the introduction of the new SST will be done in a manner that is sensitive to business operations and mindful of resource and costs associated with change,” said Yeo.
E&Y also anticipated some policy shifts in due course, including a comprehensive review of tax policies and framework as the government deliberates its implementation and fund social and development plans, while keeping tax rates competitive. — Bernama
KUALA LUMPUR, May 19 — AirAsia, via its agencies, took home 11 accolades of five gold, five silver and a bronze at the 2018 MARKies Awards, held here recently. Four of the gold awards for Best Idea-Digital, Best Idea-Mobile, Best Use of Digital…
KUALA LUMPUR: The ringgit is expected to remain on a downtrend against the US dollar next week at between the 3.96-3.99 levels and on further demand for the greenback, said a dealer.
OANDA Head of Trading in Asia-Pacific, Stephen Innes said factors that would drive the greenback include the higher US Treasury yield and a faster-than-expected increase in the US interest rates due to strong economic data.
“The US dollar will continue to stay firm against all Asian currencies, partly because, investors too are cautious about the on-going trade negotiations between the US and China,” Innes told Bernama.
On the local front, he said sentiment would also weigh on discussions around the removal of the Goods and Services Tax (GST) and how credit rating agencies view the matter, despite the improvement in oil prices.
During the week, the benchmark Brent crude topped US$80 per barrel for the first time since November 2014, as the market grew concerned over US President Donald Trump administration's effort at sanctioning Iran's crude oil exports.
Meanwhile, FXTM's Global Head of Currency Strategy & Market Research, Jameel Ahmad said following further investor appetite for the US dollar in the coming weeks, the ringgit may breach the 4.0 level.
“But, it must be pointed out that weakness in the ringgit is not due to a change in Malaysia's economic outlook.
“Investors are also monitoring other data announcements in the country next week, including the latest inflation data due for release on May 23.
“The expectation is that the inflation rate will be around 1.3 per cent.But, there is a risk of inflation edging higher over the upcoming months, following the weakness in the ringgit and emerging markets since April, as a result of a transformation of investor sentiment towards the US dollar,” he added.
The ringgit traded mixed against a basket of major currencies.
On a Friday-to-Tuesday basis, the local note fell against the greenback to 3.9700/9740 from 3.9480/9530,
It declined against the Singapore dollar to 2.9523/9557 from 2.9498/9540, but increased against the yen to 3.5769/5815 from 3.6250/6299.
The local note depreciated vis-a-vis the British pound to 5.3516/3577 from 5.3353/3437, but strengthened against the euro to 4.6751/6806 compared with 4.6898/6962 last Tuesday.
The market was closed last Wednesday for the 14th General Election, as well as on Thursday and Friday, to observe special public holidays in conjunction with the Pakatan Harapan coalition's victory. — Bernama
KUALA LUMPUR: Bursa Malaysia is expected to trend higher towards the 1,880 level next week, driven by stronger crude oil prices, an accommodative monetary policy and improvement in consumer sentiment.
Hermana Capital Bhd's Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan said the government's recent announcement on zero-rates Goods and Services tax (GST) is expected to improve consumer sentiment and lift consumer counters.
“This (zerorising of GST) will be a boost to private consumption,” he told Bernama.
He said strong crude oil prices, with the benchmark Brent hitting US$80 per barrel on Thursday, the highest level in four years, would also be a mitigating factor for the local bourse, especially oil and gas counters.
Meanwhile, he said Bank Negara Malaysia's (BNM) assurance over keeping interest rates accommodative would bring further stability to sentiment on Bursa Malaysia.
On developments overseas, Nazri Khan said investors would be watching events surrounding the US-China trade talks.
“Hopefully, it (trade talks) will be fruitful. This would boost our own exports,” he added.
For the week-just-ended, Bursa Malaysia closed mostly higher on sustained buying momentum in selected heavyweights, as well as situational counters.
Bursa Malaysia started off the first day of trading under the new government, surprisingly better-than-expected, and closed in positive territory when compared to expectations that it would close lower due to a knee-jerk reaction to the defeat of the ruling Barisan Nasional coalition to Pakatan Harapan.
On a Friday-to-Tuesday basis, the benchmark FTSE Bursa Malaysia KLCI was 7.99 points higher at 1,854.5 from 1,846.51.
The FBM Emas Index eased 22.49 points to 12,863.22, the FBMT100 Index eased 35.08 points to 12,663.36, the FBM 70 slid 350.89 points to 14,952.37 and the FBM Emas Syariah Index fell 129.72 points to 12,945.64.
The FBM Ace improved 172.77 points to 5,385.1.
On a sectoral basis, the Finance Index surged 237.7 points to 18,328.29, the Industrial Index expanded 107.34 points to 3,303.89 and the Plantation Index rose 72.52 points to 7,922.24.
Weekly turnover rose to 20.14 billion units worth RM21.61 billion from 4.27 billion units worth RM4.89 billion.
Main market volume increased to 13.97 billion shares worth RM20.6 billion from 2.39 billion shares worth RM4.53 billion.
Warrants turnover grew to 3.67 billion units valued at RM523.83 million versus 1.22 billion units valued at RM235.14 million.
The ACE market volume expanded to 2.46 billion shares worth RM472.54 million from 643.35 million shares worth RM122.59 million.
Gold futures contracts on Bursa Malaysia Derivatives is likely to stage a rebound next week on a technical correction after a lacklustre performance during the week, said a dealer.
Phillip Futures Sdn Bhd Dealer Amberlyn How said Bursa Malaysia gold futures is expected to pick up on buying demand from investors.
“The current low prices in local gold, will likely see investors buying next week,” How told Bernama.
The market was closed last Wednesday for the 14th General Election, as well as on Thursday and Friday, to observe special public holidays in conjunction with the Pakatan Harapan coalition's victory.
On a Friday-to-Tuesday basis, May 2018 dipped RM39 to RM165.05 per gramme, June 2018 and July 2018 each fell RM25 to RM165.85 and RM166.25 per gramme respectively, while August 2018 eased RM23 to RM166.35 per gramme.
Weekly turnover increased to 18 lots worth RM301,155 from seven lots worth RM116,910 from the previous week, while open interest decreased to 46 contracts from last Tuesday's 49 contracts. — Bernama
BEIJING, May 19 — China’s push to open up its financial sector to foreign banks and financial institutions will be based on the principle of reciprocity and will not reward protectionism by other countries, an official said today. Chen Wenhui,…
KUALA LUMPUR, May 19 — The ringgit is expected to remain on a downtrend against the US dollar next week at between the 3.96-3.99 levels and on further demand for the greenback, said a dealer. Oanda Head of Trading in Asia-Pacific, Stephen Innes…
WASHINGTON, May 19 — White House economic adviser Larry Kudlow said yesterday that China is “meeting many of our demands” on reducing its trade surplus with the United States but that no deal had emerged yet. “China has come to trade,”…
NEW YORK, May 19 — The S&P 500 ended lower yesterday after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks. All three major US stock indexes posted a weekly loss as…
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) supports the government’s non-interference stance with regards to government-linked companies (GLCs), said chief executive officer (CEO), Datuk Zakaria Arshad. “We have been assured by the Council of Eminent Persons (CEP) that there will not be any more interference from politicians, moving forward,” he told reporters after giving […]
KUCHING: Analysts see moderate gross domestic product (GDP) growth ahead after weighing in the possible downside risks which comes with the transition of administration to the new Pakatan Harapan (PH) government. Of note, on Thursday, Bank Negara Malaysia (BNM) announced that Malaysia’s economy grew by 5.4 per cent in the first quarter of 2018 (1Q18) […]