sarawak

 
 

Govt losing RM8b in tax revenue from illicit trade : IDEAs

KUALA LUMPUR: The Institute for Democracy and Economic Affairs (IDEAS) estimates the government is losing some RM8 billion in tax revenue annually due to the black market, which looks to be thriving particularly in the tobacco, food and beverage and motor vehicle industries.

A roundtable with the authorities and industry players today to gain feedback and formulate a way forward to combat the illicit goods market highlighted the growing number of contraband beers in the Sabah and Sarawak market, the infringement of copyrights and threats to intellectual property especially through digital channels.

A common solution mooted by participants was for more government intervention in policing and enforcement of laws.

The think tank’s estimates are based on previous academic studies on the subject as well as RM4.4 billion tax revenue losses recorded from the illicit tobacco market last year.

Apart from the tobacco industry, these losses also are from the black markets of the food and beverage, motor vehicle and non-electrical machinery segments.

The tax revenue losses from the tobacco industry accounted for 56% of the computed figure, followed by F&B (24%), motor vehicles (17.8%) and non-electrical machinery (2.2%).

IDEAS research director Ali Salman said high taxes on tobacco and alcohol products has led to Malaysia being a fertile breeding ground for the proliferation of illicit products.

“Measures such as price control and anti-profiteering is not helping businesses. Government should see the market and encourage more supply,” he said adding that these policies have also become a bane for businesses.

Ali noted that there is a need for a multi-agency committee from a few ministries to be set up to combat illicit trade and the shadow economy. He also noted that there should be more market based approaches and engagement between industry players and the government to come up with solutions to combat illicit trade.

The study also suggested the use of technical solutions such as holographic devices to authenticate products and to prevent counterfeits.


Govt losing RM8b a year in tax revenue from illicit trade : IDEAS

KUALA LUMPUR: The Institute for Democracy and Economic Affairs (IDEAS) estimates the government is losing some RM8 billion in tax revenue annually due to the black market, which looks to be thriving particularly in the tobacco, food and beverage and motor vehicle industries.

A roundtable with the authorities and industry players today to gain feedback and formulate a way forward to combat the illicit goods market highlighted the growing number of contraband beers in the Sabah and Sarawak market, the infringement of copyrights and threats to intellectual property especially through digital channels.

A common solution mooted by participants was for more government intervention in policing and enforcement of laws.

The think tank’s estimates are based on previous academic studies on the subject as well as RM4.4 billion tax revenue losses recorded from the illicit tobacco market last year.

Apart from the tobacco industry, these losses also are from the black markets of the food and beverage, motor vehicle and non-electrical machinery segments.

The tax revenue losses from the tobacco industry accounted for 56% of the computed figure, followed by F&B (24%), motor vehicles (17.8%) and non-electrical machinery (2.2%).

IDEAS research director Ali Salman said high taxes on tobacco and alcohol products has led to Malaysia being a fertile breeding ground for the proliferation of illicit products.

“Measures such as price control and anti-profiteering is not helping businesses. Government should see the market and encourage more supply,” he said adding that these policies have also become a bane for businesses.

Ali noted that there is a need for a multi-agency committee from a few ministries to be set up to combat illicit trade and the shadow economy. He also noted that there should be more market based approaches and engagement between industry players and the government to come up with solutions to combat illicit trade.

The study also suggested the use of technical solutions such as holographic devices to authenticate products and to prevent counterfeits.


Poh Kong confident of performing better in current fiscal year

KUALA LUMPUR: Jewellery retailer, Poh Kong Holdings Bhd, is optimistic of outperforming its previous year’s financial performance, riding on better gold prices. Head of Corporate Affairs, Admin and Human Resources, Margaret Hon said gold prices were expected to better the level last year, which already saw price grow by about 13 per cent to around […]


Stocks in Focus (17-1-2018)

KUALA LUMPUR (Jan 16): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Jan 17) may include the following: Advance Synergy…


Petronas awards MCM deals to five local contractors

PETALING JAYA: Petroliam Nasional Bhd’s (Petronas) subsidiary Petronas Carigali Sdn Bhd has awarded contracts for the provision of maintenance, construction and modification services (MCM) at its offshore facilities in Peninsular Malaysia, Sabah and Sarawak to five local contractors.

In a statement yesterday, Petronas said Carimin Engineering Services Sdn Bhd, Dayang Enterprise Sdn Bhd, Deleum Primera Sdn Bhd, Petra Resources Sdn Bhd, Sapura Fabrication Sdn Bhd and its joint venture partner Borneo Seaoffshore Engineering Sdn Bhd were selected for the five-year contracts with an option to extend an additional year which took effect in September last year.

The value of the contracts was not disclosed.

Under the terms of the contracts, the engineering and maintenance services will include topside major maintenance and facilities improvement projects.



Analysts neutral on Ta Ann’s move to acquire stake in Sarawak Plantation

KUCHING: Ta Ann Holdings Bhd’s (Ta Ann) proposal to acquire a 30.4 per cent stake in Sarawak Plantation Bhd (Sarawak Plantation) garnered neutral views from analysts. In its report, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) explained that it is overall neutral on the proposed acquisition as their estimated incremental associate profit […]


Sarawak’s Petros aims to be active oil & gas player within two years

MIRI: Petros, an oil and gas (O&G) company that is wholly owned by the Sarawak government, targets to become an active player in the O&G industry within two years.

Chief Minister Datuk Patinggi Abang Johari Tun Openg, said the company would try to exploit all opportunities in the O&G industry once it is operational.

“Wait two years for Petros to take active participation in the oil and gas industry, “ he said during the opening of the Parti Pesaka Bumiputera Bersatu (PBB) Miri Zone 10 delegates meeting today.

Petros was established in August 2017 to enable the state government to participate directly in the O&G industry in Sarawak.

In November 2017, Petros  chairman Tan Sri Hamid Bugo was reported as saying the company was expected to begin operations in the first quarter of 2018, and was looking for a suitable candidate to fill the post of the chief executive officer. At the same event, Abang Johari had proposed to change the Miri tourism promotion approach by using virtual reality method.

“Bario highlands as well as Bekenu beach in Miri are most suitable to use the new approach to attract tourist arrivals,” he said.

Meanwhile, State Legislative Assembly Deputy Speaker Datuk Gerawat Gala, who is also PBB Zone 10 Coordinator, said the delegates from eight branches had unanimously decided to maintain the current leadership in PBB.

Abang Johari will remain as PBB President and there would be no contest for the two deputy president posts as well as Youth and Women’s Chief at the party’s general assembly next month.


Mapping the sustainability landscape

KUCHING: The ways of doing business has evolved with time. Long gone are the days of operating a business purely for the want of generating profits; these days, it is  crucial to consider of the impact our businesses have on our enviroment, society and economy as a whole. In the midst of doing business, sustainability […]


The week at a glance 14 January 2018

Sabah & Sarawak Analysts positive on CPO export duty removal, but warns of trade war brewing While most analysts have been fairly positive in the temporary crude palm oil (CPO) export duty removal that became effective on Monday, there were concerns over a possible trade war brewing with other oil palm producing countries. To recap, […]