Sunday, November 15, 2009

Malaysia 2010 Budget - What should I do with it?

If you're Malaysian, you may wonder what are the action that you should take with the recent budget 2010 announcement. If you're not Malaysian, you can ignore this post. These are the KEY summary of Malaysia budget 2010 which most likely may impact or relevant to you.

For Credit Card Holders

If you're credit card holder and you've more than 1 credit card, go to bank directly and cancel your credit cards. Keep one credit card will be enough. This is due to the fact that you're now required to pay annual RM50 fees per credit card and RM25 for each supplementary card. What a crap?

My 2 cents: If RM50 is NOT too much for you or you lazy to go to bank, you can just wait and see what are the respond from the bank to play around with our government to waive this RM50.

For Property or Real Estate Owners

If you're the owner of property and this year is your fifth year of your purchase, sell your property as soon as possible before the end of 2009. If you can't sell, you can either sell it with 5% tax starting from Jan 2010 or just don't sell it at all and pray until the next announcement to waive it. Possible?

If you plan to sell your property which is within the 4 years of your purchase, don't sell it until next year Jan 2010 because the tax is more than 5%. Hold it until 2010 only sell your property. :)

Background: It used to tax 30% out of your property gain if you sell your property within 2 years, third year is 20%, fourth year is 15% and fifth year onward is NO TAX at all. With this recent 2010 budget announcement, everything will be stick to 5% regardless of what years you're selling. So it is good for those love to sell the property within 4 years but not good for those who love to sell their properties in long term (i.e after 4 years).

For Broadband Subscribers

If you have subscribed to any broadband services (e.g. streamyx), please keep your broadband bills receipt every month. This is due to the fact that you can get claim up to RM500 for tax relief starting from 2010 to 2012.

My 2 cents:
This is probably the best news in this budget 2010 announcement. By the way, for student, there will be some incentive about PTPTN conversion to scholarship and free netbook package which I don't feel any great about it. Do you?

For EPF Contributors

If you're EPF contributors, basically you do NOT need to do anything. Your contribution will be reverted back to 11% if you opted to decrease your contribution previously. Also for 2010 tax filling, EPF and life insurance schemes to be increased to RM7K from RM5K.

My 2 cents: It is clear that this new scheme is good for everyone especially for those who has exceeded RM5K for many years.

For Self-Employed Folks

If you're self-employed, starting in 2010, you can go to the EPF office directly to open an EPF account and the government will top up 5% of every RM100 that you contribute. However the maximum amount that the government will pay you is RM60 which is RM300 for 5 years.

My 2 cents: What so big deal about this RM60 per annum? Isn't that too little? Should I say better than nothing?

p/s: Hope this helps and clear things up on what you should react to this Malaysia 2010 budget announcement. Good luck!

Sunday, November 08, 2009

How are people feeling about the economy now?

Indonesians don't see the economy as bad as it is blown up in the news. They still go on holiday, shop in malls, eat in food courts, travel out of down. Is this what is happening in Malaysia too?

Koreans feel quite positive about the economy now due to the stock index for the key companies in Korea (e.g. Samsung, LG and Hyundai) has risen and showed quite positive business result in the first half of 2009.

UK's people seem to be confused due to the conflicting message in the UK media - Things are going to get worse? Things are starting to look more positive? The recession is already over? While many become lost in negativity, there are equally many who have more positive feeling towards the economy.

Australians are caught in uncertain time which binds them into a state of inertia. In short, they don't know what to do to react to the current economy situation. Interest rates are low, services could not be better and etc. Majority of them do not expect economy upturn anytime soon.

Americans have overwhelming feeling of uncertainty and it is unclear what the next is. No one thinks the economy is getting better. 5% of Americans say they're undecided on economy's direction. 13% of Americans say the economy is staying the same. 82% of Americans say the economy is getting worse.

Malaysians are optimistic about the economy. They feel secure, they make plans for the future, they get married, they buy cars and houses, they grow their wealth with stocks, bonds and unit trust. 58% of Malaysians think the economy will get better quickly. Based on my personal experiences (since I'm Malaysian), more than 70% of people around me buying new house and new car. So, are we really optimistic about the economy now?

As you can see people from Asia are generally optimistic about the economy situation now as compared to American and European. What is your opinion on this?


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