...1 (January, 2013) 12-19 Indexing and Abstracting: Ulrich's - Global Serials Directory Goods and Services Tax (GST): A New Tax Reform in Malaysia Nor Hafizah Abdul Mansor Faculty of Accountancy Universiti Teknologi MARA (UiTM), Malaysia Email: norha058@johor.uitm.edu.my Azleen Ilias College of Business and Accounting, Universiti Tenaga Nasional (UNITEN), Malaysia Email: Azleens@uniten.edu.my Abstract The Goods and Services Tax (GST) is becoming one of the most prominent topics in Malaysia. The announcement by the Malaysian Ministry of Finance (MOF) in the Budget 2010 on the implementation of GST had created various reactions from practitioners, academicians, general public and most important businesses. GST is one of the tools that are proposed by the Government to reduce continuous deficit budget in Malaysia. This paper discusses the GST as a new tax reform in Malaysia, and covers several issues in order to enhance the understanding and readiness among Malaysian in adopting GST. Keywords: Tax reform; GST; budget deficit. 1. Introduction The introduction of Goods and Services Tax (GST) was first announced in the Budget 2005 in order to replace the existing sales and services tax structure in Malaysia. This new tax reform is projected to be implemented in January 2007. However, the Government has announced on 22 February 2006 that the implementation would be postponed to a later date. Recently in Budget 2010 the Government is currently at the final stage of completing the study...
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...Background Lembaga Tabung Haji – TH (Pilgrims Fund Board) was established as a premiere economic-based Islamic financial institution inspired with a realization to help provide investment services and opportunities while managing pilgrimage activities for the Malaysian Muslim community. TH was meant to play a bigger social role, thus in addition to managing pilgrimage activities, it operates as an alternative institutional body providing investment opportunities for Islamic depositors to save and invest in accordance to Islamic principles. Depositors' money is invested in selected investment establishments spread across a diverse range of investment portfolios based strictly on Syariah principles to preserve the purity and integrity of profits derived which is free from "riba"elements and to avoid trading in prohibited ‘haram' products. The fund board was established in 1962 as a modest proposal to aid the Malayan rural economy and to enable the Muslims to perform 'Hajj', one of the tenets of their faith. Today TH is one of the greatest cooperative success stories in Malaysia. Its basic principles, structured by the Royal Professor Ungku Aziz who was then an economic lecturer and later became the Vice Chancellor of the University Malaya, remain unchanged, but the institution has developed beyond imagination. In the early days, Islamic community in Malaysia resorted to rather unsystematic and traditional methods when it comes to saving their money for the purpose of performing...
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...IMF Country Report No. 15/58 MALAYSIA March 2015 2014 ARTICLE IV CONSULTATION—STAFF REPORT; PRESS RELEASE; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR MALAYSIA Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2014 Article IV consultation with Malaysia, the following documents have been released and are included in this package: The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on February 13, 2015, following discussions that ended on November 24, 2014, with the officials of Malaysia on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on January 23, 2015. An Informational Annex prepared by the IMF. A Press Release summarizing the views of the Executive Board as expressed during its February 13, 2015 consideration of the staff report that concluded the Article IV consultation with Malaysia. A Statement by the Executive Director for Malaysia. The document listed below has been or will be separately released. Selected Issues Paper The policy of publication of staff reports and other documents allows for the deletion of market-sensitive information. Copies of this report are available to the public from International Monetary Fund Publication Services PO Box 92780 Washington, D.C. 20090 Telephone: (202)...
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...Vol. 11, No. 1: 43-56 Journal abbreviation: J. Contemp. East. Asia Stable URL: http://eastasia.yu.ac.kr/documents/Fumitaka_11_1.pdf www.JCEA-Online.net Open Access Publication Creative Commons License Deed Attribution-No Derivative Works 3.0 Journal of Contemporary Eastern Asia, Volume 11, No.1: 43-56 http://dx.doi.org/10.17477/jcea.2012.11.1.043 Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun The paper chooses the “Asian Financial Crisis” as a case study to examine its impact on Malaysian economy and describes how Malaysian government responded to the crisis. It also focuses on the Asian financial crisis’ impact on the employment of banking sector in Malaysia. In the finance, insurance, real estate and business service sector, a number of 6,596 workers were retrenched. Banks were forced into mergers and acquisition as well as downsizing, trim lean, organizational changes and introduction of new technologies. Excess workers were offered a “voluntary separation scheme.” These retrenched workers became the urban poor facing high cost of living and no opportunity for jobs as there is no safety net provided. 1. Introduction The economic meltdown began in Thailand in July 1997 and spread to other countries in the region, such as Malaysia, Indonesia, the Philippines and South Korea. This phenomenon was later called the "contagion effect." To improve economic foundations...
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...1) In the early stage, costing system was viewed as a method of accounting that used various techniques to assign costs to particular cost objectives, e.g. the cost to perform an activity, produce a product or render a service. W.B. Lawrence stressed the importance of accountants becoming familiar with cost accounting in his 1930 text because even then, “the modern factory occupies more space and employs many more workers than did the factory of a generation ago”. In 1940, John Blocker recommended in his text additional uses for cost accounting in other industries, such as construction, mining, utilities and nonprofit organizations. He believed that all of these businesses needed to consider that the costing in different departments within a company could be controlled through cost accounting. Even in the 1960’s accountants and system designers developed cost accounting to do more than measure performance. Cost accounting was an integral part of planning and control in businesses. After that, the concept of activity-based costing (ABC) was introduced in the US, initially in the manufacturing sector during 1970s and 1980s. Robert Cooper and Robert Kaplan brought the ABC concept to light and published the body of knowledge in the Harvard Business Review in 1988. Cooper and Kaplan defined ABC method as an approach to solve the problems of traditional cost management systems; that is, the conventional cost accounting systems are often unable to identify correctly the true...
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...Vol. 2, No. 2 International Business Research Case Study of Factors Influencing Jobs Satisfaction in Two Malaysian Universities Edward Sek Khin Wong (Corresponding author) Faculty of Business & Accountancy University of Malaya, 50603, Kuala Lumpur, Malaysia E-mail: edwardwong@graduate.uwa.edu.au Dr Teoh Ngee Heng Universiti Tunku Abdul Rahman 46200, Petaling Jaya, Malaysia E-mail: tiohnh@utar.edu.my Abstract This work identifies the factors that measure job satisfaction of faculty members at two selected and major universities in Malaysia, using ten major factors corresponding to job satisfaction using the Herzberg Two-factor Theory to determine how these selected factors are related to job satisfaction of Malaysian faculty members. The conclusions drawn from this study are that the major sources of job satisfaction for Malaysian faculty members are shown to be policy, administration, and salary. The relevant sources of dissatisfaction are personal achievement, personal growth, interpersonal relations, recognition, responsibility, supervision, the work itself, and the overall working conditions. This study has a number of practical implications for institutional administrators, because if the educational institution has no instrument designed to measure faculty perceptions of their jobs and work, these administrators could elect to use the same instrument that investigates the areas of job satisfaction to gain similar results. Keywords: Higher education, Herzberg Two-factor...
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...hand-painted shoes business came from one of our directors, Lim Ping Yeng who is particularly fond of designing and drawing. We found that the trend of wearing painted shoes has been emerging in other countries but yet it is still new in the Malaysian market. Malaysian people may perceive readymade shoes as the only option for them when they want to buy shoes and are unaware that there is a “better choice” for them- hand-painted shoes. So, what are hand-painted shoes? They are pure hand-drawn designs canvas shoes, washable and come in color combinations varying according to the designs of shoes. Painted shoes are up to trend and fashionable. It can be easily mixed and matched with different types of clothing such as shorts, skirt, jeans and other casual wears. It also creates sporty and casual look that suits people of different ages. Well-matched, they perfectly reflect a person’s thoughts, personality and style. Unlike readymade shoes, every pair of painted shoes is unique and exclusive whereby it exhibits the translation of one’s ideas into a realistic form. We proposed to run a hand-painted shoes business because we observed its market potential in Malaysia. By setting up this business, we are able to promote hand-painted shoes widely among Malaysians. We named our company...
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...Corporate governance Two definitions: 1. ASX CGC: rules, relationship, systems and processes help a company to monitor and assess risk, optimize performance, create value and provide accountability. a) A narrow definition which consistent with agency theory focuses on relationship between company and shareholders. 2. OECD: a system a company can be directed and controlled, specify rights, responsibilities and rules; set and achieve objectives and monitor performance. b) A board definition consider relationship between company and stakeholders 3. Agency theory c) A contract under which one or more person engage another person or persons to perform some service on their behalf d) Agency problem rise because of the conflict of interest between principle and agent e) Three specific problems: i. Managers try to maximize their wealth at the expense of shareholders ii. Tendency for management to focus on short-term performance iii. Different attitude of managers and shareholders towards risk f) Corporate governance structures, policies and relationships can help to overcome these three related agency problems iv. Independent board of directors v. Independent board chair vi. Independent board subcommittees such as audit, remuneration and nomination 4. Stakeholder theory g) Reject the only important relationship is shareholders and managers, but consider...
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...Asian Social Science; Vol. 9, No. 11; 2013 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Elements of Compliance Costs: Lesson from Malaysian Companies towards Goods and Services Tax (GST) Mohd Rizal Palil1, Rosiati Ramli1, Ahmad Fariq Mustapha1 & Norul Syuhada Abu Hassan1 1 School of Accounting, University Kebangsaan Malaysia, Malaysia Correspondence: Mohd Rizal Palil, School of Accounting, Faculty of Economics and Management, University Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia. E-mail: mr_palil@ukm.my Received: May 6, 2013 Accepted: June 20, 2013 Online Published: August 30, 2013 doi:10.5539/ass.v9n11p135 Abstract URL: http://dx.doi.org/10.5539/ass.v9n11p135 Various parties including academics, professionals and the society (the potential GST payers) are arguing about the introduction of GST in Malaysia. Goods and Services Tax (GST) or Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services. The Malaysian government introduce this potential tax mechanism, in order to increase the existing tax bracket and replacing the long-implemented service and sales taxes. With the introduction of GST, the Malaysian government felt it would provide them with the prospect to reduce the rates of individual and corporate income tax. However, do all companies particularly small and medium enterprises (Companies) ready to adopt the systems efficiently? If they could adopt the system, how much their...
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...pART 1 NEW ECONOMIC MODEL FOR MALAYSIA NEW ECONOMIC MODEL FOR MALAYSIA pART 1 High Income Rakyat Quality of Life Inclusiveness Sustainability NEAC National Economic Advisory Council Level 5 & 11, Menara Usahawan Persiaran Perdana, Precinct 2 Federal Government Administrative Centre 62652 PUTRAJAYA MALAYSIA NATIONAL ECONOMIC ADVISORY COUNCIL NEAC www.neac.gov.my NEAC NATIONAL ECONOMIC ADVISORY COUNCIL CHAPTRE NEW ECONOMIC MODEL F O R M A L AY S I A 1 Part I: Strategic Policy Directions Copyrights Reserved All rights reserved. No part of this publication may be reproduced, stored in retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of: Secretary National Economic Advisory Council Level 5 & 11, Menara Usahawan Persiaran Perdana, Precinct 2 Federal Government Administrative Centre 62652 PUTRAJAYA Tel.: 03-8888 6512/ 8888 6513 Fax: 03-8888 4638/ 8888 4177 Email: secretariat.neac@pmo.gov.my www.neac.gov.my Sales copies are obtainable from: Percetakan Nasional Malaysia Berhad Jalan Chan Sow Lin 50554 Kuala Lumpur Tel.: 03-9236 6888 Fax: 03-9222 4773 Email: cservice@printnasional.com.my __________________________________ Cover design and layout by Percetakan Nasional Malaysia Berhad Preface This report is the first of two documents by the National Economic Advisory Council (NEAC) on the New Economic Model (NEM). This report presents...
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...Elisabeth Hetterich Due date: 5:00pm Monday 11 April Week 6 Word count: 2,064 Contents Introduction 1 Organisational Analysis 1 Organisational analysis-Business Strategy 2 Cost Leadership Strategy 3 Focus Strategy 3 Differentiation Strategy 3 Organisational analysis-culture 4 Analysis of Issues-Analysis of performance management and reward issues 5 Conclusion 8 References 10 Introduction This report will use organisational analysis, business culture, and performance management cycle models to examine the current situation and its approach to performance management. It will also identify, assess and present issues found to be problematical in Bank of Queensland’s current performance management and rewards approach to the senior management team. Organisational Analysis This section is a presentation of results from the analysis of two major business areas; organisational analysis/culture and analysis of performance management and rewards issues. Porter’s strategy [pic] Porter (1980) According to Miles and Snow Organizational Types model, in order for an organisation to be superior, there has to be a strong and direct correlation between the organization's mission/values by it definition, the organization's functional strategies which are its’ characteristics and behaviours. Of the four type; Reactors, Analyzers, Prospectors and Defender, this theory suggests that BOQ is...
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...MBA 1015 Entrepreneurship Ku Chong Yoong 900509-05-5279 0173690600 201044 JANUARY 2014 SEMESTER Contents 1.0 Introduction 3 2.0 SME 7 2.1 Benefit of SME 7 3.0 Case Study 1 13 4.0 Case Study 2 25 5.0 Reference 44 1.0 Introduction While individuals may be publicly recognized as social entrepreneurs for their contributions to improve the welfare of communities, the field of social entrepreneurship continues to struggle to gain academic legitimacy. Social entrepreneurship is a term in search of a good definition. The current use of the term seems vague and limitless; it needs boundaries to demarcate its function. The lack of a common definition hinders research and raises questions about which social or profit-making activities fall within the spectrum of social entrepreneurship. To become an important stream in the entrepreneurship literature, social entrepreneurship needs to be properly defined and it requires a theoretical framework that links it to the theory of entrepreneurship. This article builds on the literature to define social entrepreneurship, discusses the boundaries of socially-oriented entrepreneurial activities, and positions the social entrepreneur in the spectrum of entrepreneurship. Introduction Most economists and academics support the notion that entrepreneurship is becoming a crucial factor in the development and well-being of societies. Whether the entrepreneurial activities are practiced in factor-driven, efficiency-driven...
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...International Political Economy Contents 1.0 Explanation of: 3 1.1 Free Market System 3 1.2 Command System 3 1.2 Mixed Economy System 4 1.4 Islamic Economic System 5 2.0 Introduction 6 3.0 Description of the Malaysian Economic System 7 4.0 What caused the failure of the Free Market System in Malaysia 10 5.0 How does the Government intervene? 11 Reference 13 1.0 Explanation of: 1.1 Free Market System Free market system is an economy where the question is answered by and controlled by the people. It is a market based economy that depends on the law of supply and demand. The values of properties and facilities are set by the participants in the market i.e. suppliers, vendors, businesses, and consumers, in which the government has no role in setting any rules or regulations of prices and resources. In other words, the government does not interfere. It can be often referred to as Barter Trading. Both parties voluntarily agree to exchange something for the other to which he holds value. Which goods are to be produced are defined by the demand and supply rule. In a free market the products chosen by the consumers survive, a deficiency happens at time when consumers need to obtaining more than manufacturers produce. A surplus happens while creators want to sell more than customers wish to buy. Unavailability of a manufactured goods commonly result in value growths in a market economy; surpluses typically consequence in cost reductions. The disadvantages...
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...New Zealand Journal of Asian Studies 11, 1 (June 2009): 304-317. EMPLOYMENT RELATIONS IN MALAYSIA: PAST, PRESENT AND FUTURE MAIMUNAH AMINUDDIN1 Independent Scholar Introduction This paper offers an overview of the employment relations framework in Malaysia, focusing on the current status of three key areas central to the employment relations system, namely, the strength of the trade union movement, security of employment for employees, and the state’s position on measures to deal with sexual harassment. It will only examine these subsystems of the employment relations system as they apply in the private sector where the majority of employees work, this sector is considered the main driver of Malaysia’s economy. The Trade Union Movement The relationship between employers and employees in Malaysia is regulated by a number of laws which were introduced prior to independence (1957) and in the first decade immediately thereafter. The colonial economy prior to World War II (1939-45) was based on tin mining and rubber plantations. The need for labour in these two industries changed the human landscape of Malaysia (Malaya as it then was) for ever. The colonial government either allowed or actively encouraged the importation of labour from China and India, thus creating the multi-racial society which is Malaysia today. The wages of this growing group of employees were low and working conditions were mostly abysmal. Jomo and Todd explained the lack of governmental ...
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...SEALANT COSTS Sir, I was interested to read the practice paper by Dr Bonetti on Evidence not practised: The underutilisation of preventive fissure sealants.1 In the recently published clinical guideline by the Scottish Intercollegiate Guidelines Network (SIGN),2 it has been suggested that resin-based PFSs should be applied to the permanent molars of all children as early after eruption as possible. In other words, applications should usually take place between the ages of 6-7 years for first permanent molars and 11-12 years for second permanent molars. In 2012/13, approximately 30% of primary 7 children (mean age 11.5 years) in Scotland received PFSs.3 In Scotland, the current cost of application of PFS to unfilled permanent molar teeth within two years of their eruption is £8.15 per tooth.4 To increase the uptake of PFSs in first permanent molars from 30% to 60% in Scottish children aged 6-7 years, SIGN estimated that the incremental cost would be over £1 million. Similarly, over £1 million would be required to double the uptake of PFSs in second permanent molars in Scottish children aged 11-12 years.2 It was not possible to segregate visits incorporating treatment with visits representing routine examinations in the above estimated costs; therefore, the total cost of service provision in Scotland may have been underestimated. However, potential savings from restorations avoided are also excluded.2 Implementation of the SIGN guideline is the responsibility of each NHS board...
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