Thursday, July 5th, 2018

 

Credit Suisse to pay US$77m over Chinese nepotism case

WASHINGTON, July 5 — Credit Suisse agreed to pay US$77 million (RM311.3 million) to US authorities after admitting it hired the under-qualified relatives of influential Chinese officials in order to win business, the government announced today….


Oil dips after surprise crude storage increase in the US

NEW YORK, July 5 — Oil slid after a government report showed a surprise increase in US crude stockpiles. Futures dropped as much as 1.7 per cent in New York following the US Independence Day holiday. Inventories rose 1.25 million barrels last…


MoF: ECRL, pipeline projects suspended

PETALING JAYA: The Ministry of Finance (MoF) has issued suspension orders for all contracts related to three projects, namely East Coast Rail Link (ECRL), Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP), worth a total of RM92.1 billion.

Prime Minister Tun Dr Mahathir Mohamad, after seeking advice from the Attorney General, instructed MoF to issue a suspension notice through MoF Inc for all contracts related to MPP, TSGP, and ECRL on July 3. The services and operations suspension is in place until further notice.

“The decisions are solely directed towards the related contractors relating to the provisions mentioned in the agreements, and not at any particular country,” Finance Minister Lim Guan Eng said in a statement issued today.

The statement comes after weeks of speculation on whether the government would proceed with the lopsided deals.

MPP and TSGP, which are under Suria Strategic Energy Resources Sdn Bhd (SSER), will cost the government RM11.1 billion.

According to the statement, SSER contracts totalling RM9.4 billion for the two projects do not take into account cost related to land acquisition, two expert consultancy agreements, and a maintenance agreement, which comprise a total additional cost of RM1.7 billion.

MPP and TSGP, with a total construction cost of RM9.4 billion, were awarded to China Petroleum Pipeline Bureau on Nov 1, 2016.

SSER has paid RM8.3 billion or 88% of the projects' construction value of RM9.4 billion, even though progressive work completion (that has not been audited) is only at 13%.

ECRL, a railway line that stretches from Port Klang to Pengkalan Kubor, Kelantan, will cost the government RM81 billion. The sum includes land acquisition cost and loan interest during the project's construction.

The rail project is made up of two phases. Phase 1 (Gombak to Wakaf Bharu), was approved in 2016 and Phase 2 (Gombak to Port Klang) was approved in 2017 by the then Cabinet. China Communications Construction Company was appointed as the main contractor.


JPMorgan triggers EU talent transfer as ‘dozens’ prepare for Brexit move

LONDON, July 5 — JPMorgan has asked “several dozen” employees to lead a first wave of relocations from Britain to continental Europe by early 2019, kicking off plans to protect its business post-Brexit, a memo to staff shows. In its first…


EU watchdog wants next ECB boss barred from joining opaque G30

BRUSSELS, July 5 — The next head of the European Central Bank and other ECB policymakers should be barred from joining an opaque club of top figures in finance, the European Union’s Ombudsman said today, referring the matter to the European…


Carmaker Jaguar says ‘bad Brexit’ would mean it could not stay in UK

EDINBURGH, July 5 — Britain’s biggest carmaker Jaguar Land Rover has joined dissenters to a “hard Brexit”, saying that Britain leaving the EU without a trade deal would cost it £1.2 billion (RM6.43 billion) a year and curtail its future UK…


Tech leads Wall Street higher as trade fears ebb

NEW YORK, July 5 — US stocks ticked higher today on signs that Washington may dial back on plans for tariffs on European cars, soothing some worries about trade even as China looked set to face US tariffs. Technology stocks led the gains, with…


BNM, SC urged to classify cryptocurrencies

KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) are urged to work together to define and classify tokens and cryptocurrencies to provide more clarity to the market, according to the Malaysian Blockchain Regulatory Report.

It said the uncertainty is unfavourable to the investors, consumers and businesses amid growing blockchain technology.

“While it is true that in the financial industry tokens and cryptocurrencies can be classified either as an asset, security or currency, if the two regulating bodies do not work in tandem there will be a lot of uncertainty in the industry as to how to deal with digital currencies and tokens,” the report noted.

In February, BNM issued a policy document on digital currencies, but the SC has not defined or classified the tokens.

Currently BNM does not regulate cryptocurrencies as it is not legal tender.

The research report, which was launched today, was conducted by the Faculty of Law of the University of Malaya (UM) and Quanta RegTech Capital plc (QRC).

It also highlighted that there is a need to clarify tax treatment of digital currency transactions and their exchanges.

“While the term ‘digital currency’ has been defined in the policy document on digital currencies with regards to digital currency exchanges. The question arises as to whether that definition of digital currency is sufficient for it to be regarded as ‘currency’ under the Income Tax Act 1967?”

Earlier, the Inland Revenue Board’s regulations and treaty division director Mohamad Fauzi Saat said the agency was still in the midst of studying the cryptocurrency market and no timeline has been set for the release of the cryptocurrency guidelines.

Project director for the regulatory report Nur Husna Zakaria said at a press conference today that she is positive on the blockchain development in Malaysia though regulation has not been put in place.

“None of the regulators in Malaysia has banned any transaction related to blockchain application, so it’s promising itself because some regulators in other jurisdictions have taken that step.”

She is hoping that the regulators could work hand-in-hand with the blockchain community, especially the industry players as it is a new technology with complexity.

“With that, whatever regulation put in place will be comprehensive and ensure the viability of any activities.”

Meanwhile, QRC group founder and CEO Adam Vaziri said regulators need to clarify how the cryptocurrencies should be taxed, be it in the form of income tax and capital gain.”There must be an official policy on the tax issue,” he added.

QRC is a venture capital that invests exclusively in blockchain RegTech.


Bank Negara, SC urged to classify cryptocurrencies to provide more clarity to market

KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) are urged to work together to define and classify tokens and cryptocurrencies to provide more clarity to the market, according to the Malaysian Blockchain Regulatory Report.

It said the uncertainty is unfavourable to the investors, consumers and businesses amid growing blockchain technology.

“While it is true that in the financial industry tokens and cryptocurrencies can be classified either as an asset, security or currency, if the two regulating bodies do not work in tandem there will be a lot of uncertainty in the industry as to how to deal with digital currencies and tokens,” the report noted.

In February, BNM issued a policy document on digital currencies, but the SC has not defined or classified the tokens.

Currently BNM does not regulate cryptocurrencies as it is not legal tender.

The research report, which was launched today, was conducted by the Faculty of Law of the University of Malaya (UM) and Quanta RegTech Capital plc (QRC).

It also highlighted that there is a need to clarify tax treatment of digital currency transactions and their exchanges.

“While the term ‘digital currency’ has been defined in the policy document on digital currencies with regards to digital currency exchanges. The question arises as to whether that definition of digital currency is sufficient for it to be regarded as ‘currency’ under the Income Tax Act 1967?”

Earlier, the Inland Revenue Board’s regulations and treaty division director Mohamad Fauzi Saat said the agency was still in the midst of studying the cryptocurrency market and no timeline has been set for the release of the cryptocurrency guidelines.

Project director for the regulatory report Nur Husna Zakaria said at a press conference today that she is positive on the blockchain development in Malaysia though regulation has not been put in place.

“None of the regulators in Malaysia has banned any transaction related to blockchain application, so it’s promising itself because some regulators in other jurisdictions have taken that step.”

She is hoping that the regulators could work hand-in-hand with the blockchain community, especially the industry players as it is a new technology with complexity.

“With that, whatever regulation put in place will be comprehensive and ensure the viability of any activities.”

Meanwhile, QRC group founder and CEO Adam Vaziri said regulators need to clarify how the cryptocurrencies should be taxed, be it in the form of income tax and capital gain.”There must be an official policy on the tax issue,” he added.

QRC is a venture capital that invests exclusively in blockchain RegTech.


BNM, SC to classify cryptocurrencies

KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) are urged to work together to define and classify tokens and cryptocurrencies to provide more clarity to the market, according to the Malaysian Blockchain Regulatory Report.

It said the uncertainty is unfavourable to the investors, consumers and businesses amid growing blockchain technology.

“While it is true that in the financial industry tokens and cryptocurrencies can be classified either as an asset, security or currency, if the two regulating bodies do not work in tandem there will be a lot of uncertainty in the industry as to how to deal with digital currencies and tokens,” the report noted.

In February, BNM issued a policy document on digital currencies, but the SC has not defined or classified the tokens.

Currently BNM does not regulate cryptocurrencies as it is not legal tender.

The research report, which was launched today, was conducted by the Faculty of Law of the University of Malaya (UM) and Quanta RegTech Capital plc (QRC).

It also highlighted that there is a need to clarify tax treatment of digital currency transactions and their exchanges.

“While the term ‘digital currency’ has been defined in the policy document on digital currencies with regards to digital currency exchanges. The question arises as to whether that definition of digital currency is sufficient for it to be regarded as ‘currency’ under the Income Tax Act 1967?”

Earlier, the Inland Revenue Board’s regulations and treaty division director Mohamad Fauzi Saat said the agency was still in the midst of studying the cryptocurrency market and no timeline has been set for the release of the cryptocurrency guidelines.

Project director for the regulatory report Nur Husna Zakaria said at a press conference today that she is positive on the blockchain development in Malaysia though regulation has not been put in place.

“None of the regulators in Malaysia has banned any transaction related to blockchain application, so it’s promising itself because some regulators in other jurisdictions have taken that step.”

She is hoping that the regulators could work hand-in-hand with the blockchain community, especially the industry players as it is a new technology with complexity.

“With that, whatever regulation put in place will be comprehensive and ensure the viability of any activities.”

Meanwhile, QRC group founder and CEO Adam Vaziri said regulators need to clarify how the cryptocurrencies should be taxed, be it in the form of income tax and capital gain.”There must be an official policy on the tax issue,” he added.

QRC is a venture capital that invests exclusively in blockchain RegTech.