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| Malaysian Ringgits per Gram |
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| Malaysian Ringgits per Kilo |
Friday, October 28, 2011
Monday, October 24, 2011
Regulators close four banks in the United States
NEW YORK: Regulators closed four banks in the United States on Friday, including one in Colorado with over US$1bil in assets, bringing the total number of closures this year to 84.
The largest of the failed banks, the Community Banks of Colorado, had US$1.38bil in assets and US$1.33bil in total deposits as of June 30, the Federal Deposit Insurance Corp said. It is the largest bank to fail since Aug 19, 2011.
Bank Midwest, NA, Kansas City, Mo, agreed to assume all the deposits of Greenwood-based Community Banks of Colorado and to purchase essentially all of he assets. Its 40 branches will reopen on Saturday as branches of Bank Midwest.
The Federal Reserve Board, which appointed the FDIC as the receiver of the Colorado-based bank, said it had been “critically undercapitalised” since July 29.
Among other banks to fail on Friday included two in Georgia and one in Florida.
In Georgia, regulators closed Community Capital Bank in Jonesboro and the Decatur First Bank in Decatur.
State Bank and Trust Co, Macon, Ga, has agreed to assume the deposits and purchase essentially all of the assets of Community Capital Bank, which as of June 30 had US$181.2mil in assets. State Bank and Trust Co is a subsidiary of State Bank Financial Corp .
Fidelity Bank, Atlanta agreed to assume all of the deposits and purchase essentially all of the assets of Decatur First Bank. Decatur First Bank had about US$191.5mil in assets, and US$179.2mil in deposits as of the end of the end of June.
In Florida, regulators shut down the Old Harbor Bank in Clearwater, and entered into an agreement with 1st United Bank of Boca Raton to assume the bank's deposits and purchase almost all of the assets.(Reuters)
The largest of the failed banks, the Community Banks of Colorado, had US$1.38bil in assets and US$1.33bil in total deposits as of June 30, the Federal Deposit Insurance Corp said. It is the largest bank to fail since Aug 19, 2011.
Bank Midwest, NA, Kansas City, Mo, agreed to assume all the deposits of Greenwood-based Community Banks of Colorado and to purchase essentially all of he assets. Its 40 branches will reopen on Saturday as branches of Bank Midwest.
The Federal Reserve Board, which appointed the FDIC as the receiver of the Colorado-based bank, said it had been “critically undercapitalised” since July 29.
Among other banks to fail on Friday included two in Georgia and one in Florida.
In Georgia, regulators closed Community Capital Bank in Jonesboro and the Decatur First Bank in Decatur.
State Bank and Trust Co, Macon, Ga, has agreed to assume the deposits and purchase essentially all of the assets of Community Capital Bank, which as of June 30 had US$181.2mil in assets. State Bank and Trust Co is a subsidiary of State Bank Financial Corp .
Fidelity Bank, Atlanta agreed to assume all of the deposits and purchase essentially all of the assets of Decatur First Bank. Decatur First Bank had about US$191.5mil in assets, and US$179.2mil in deposits as of the end of the end of June.
In Florida, regulators shut down the Old Harbor Bank in Clearwater, and entered into an agreement with 1st United Bank of Boca Raton to assume the bank's deposits and purchase almost all of the assets.(Reuters)
Banks need to train more people in Islamic banking
KUALA LUMPUR: The need to educate more staff on Islamic banking products and services is apparent as Malaysia moves towards becoming a hub for Islamic finance, said Islamic Banking and Finance Institute Malaysia (IBFIM) senior consultant in training and professional development Zanariah Zahari.
She said while the country retained a dual-banking system to cater to conventional and Islamic banking needs, employees with Islamic banking knowledge were not many as compared to conventional banking staff.
“There is a demand for staff who know the products. We have a lot of products but a lot of the people selling them do not fully understand them,” she said.
Zanariah said staff promoting Islamic finance had to be able to give customers the full details of the products and services so that they could decide what to sign up for under conventional or Islamic banking.
She noted that although there were many staff trained in conventional banking moving to Islamic banks, they would need more education on the Islamic services.
“We can refer to scholars on what is halal and what is not but it is very difficult to get good scholars who can also see the business side of their knowledge,” she said, adding that employees at all levels needed to know the products well enough as customers expected them to.
She added: “(Islamic banking) is very competitive now in Malaysia. Not only do the individual Islamic banks have to compete with their conventional sister banks but also full-fledge Islamic banks like Al Rajhi.”
Zanariah noted that Bank Negara had set up institutions like IBFIM and International Shari’ah Research Academy (ISRA) to train bank employees on Islamic finance and was also monitoring the industry to ensure all banks were sending their staff for training.
However, banks have also taken the initiative to educate their employees instead of relying only on the central bank.
On maintaining a dual-banking system, she said it was because the local market segments required both types of financial services.
“Also, we learn from countries like Pakistan and India where the full conversion to Islamic banking did not work out,” she said.(The Star Online)
She said while the country retained a dual-banking system to cater to conventional and Islamic banking needs, employees with Islamic banking knowledge were not many as compared to conventional banking staff.
“There is a demand for staff who know the products. We have a lot of products but a lot of the people selling them do not fully understand them,” she said.
Zanariah said staff promoting Islamic finance had to be able to give customers the full details of the products and services so that they could decide what to sign up for under conventional or Islamic banking.
She noted that although there were many staff trained in conventional banking moving to Islamic banks, they would need more education on the Islamic services.
“We can refer to scholars on what is halal and what is not but it is very difficult to get good scholars who can also see the business side of their knowledge,” she said, adding that employees at all levels needed to know the products well enough as customers expected them to.
She added: “(Islamic banking) is very competitive now in Malaysia. Not only do the individual Islamic banks have to compete with their conventional sister banks but also full-fledge Islamic banks like Al Rajhi.”
Zanariah noted that Bank Negara had set up institutions like IBFIM and International Shari’ah Research Academy (ISRA) to train bank employees on Islamic finance and was also monitoring the industry to ensure all banks were sending their staff for training.
However, banks have also taken the initiative to educate their employees instead of relying only on the central bank.
On maintaining a dual-banking system, she said it was because the local market segments required both types of financial services.
“Also, we learn from countries like Pakistan and India where the full conversion to Islamic banking did not work out,” she said.(The Star Online)
Tuesday, October 18, 2011
KL’s edge in Islamic finance
German don: Malaysia’s comprehensive regulatory framework a competitive advantage
KUALA LUMPUR: Malaysia's competitive advantage in Islamic finance is its comprehensive regulatory framework, according to a German economics professor.
“Malaysia has the necessary ingredients to be a hub for Islamic finance, such as its capital adequacy requirements, good governance and disclosure policies that are able to meet European financial standards,” said International Centre for Education in Islamic Finance (INCEIF) governing council member Prof Dr Volker Nienhaus.
“The German Bundesbank (central bank of Germany) has even sent its representatives to Malaysia's Securities Commission for training on Islamic finance.”
He said in comparison, the Gulf countries - the other major players in Islamic finance - have surplus liquidity but not capital adequacy. Their legal framework was also uncertain, he said. Nienhaus was speaking at a public lecture on Opportunities for Islamic Finance in the Arab Spring, Asian Summer and European Autumn, organised by INCEIF, Bank Negara's Islamic education arm.
However, Nienhaus cautioned against excessive government intervention in the growth and adoption of Islamic finance, citing the example of Pakistan which took a top-down approach and ended up creating a less-efficient replica of its previous financial system.
“It took them 10 years to reverse this, and now Pakistan maintains a dual financial system,” he said.
Nienhaus said the Arab spring in North Africa and the Middle East had opened up opportunities for the growth of Islamic finance in the region as its current financial system was deficient and did not provide support to the entrepreneurial middle class.
Its existing banks were mainly tied to the discredited elites and focused on trade financing, he said. “Once the political unrest dies down, there will be huge market potential in the Middle East, especially in areas like financing for new businesses and takaful for the young, growing population.”
On Asia's prospects, Nienhaus said although there were concerns the economic slowdown in Europe and the United States would have some spill-over effects in the region, its impact would likely be moderate.
“Much of the trade and growth in Asia is Asian growth, it is within Asia,” he said.
He also argued that the failure of the current global financial system, as seen in Europe and the US, has fostered a more open outlook toward alternative financial systems like Islamic finance.
“Something is clearly wrong with the credibility of the (mainstream) banking sector. Previously, stress tests failed only eight banks and we thought we were safe. Now, the latest news appears to say that almost all banks are bankrupt,” he said.
He said there were notable markets for Islamic finance in Europe owing to the sizeable Muslim populations there, including the United Kingdom (two million Muslims), France (five million), Germany (three million), and the largest in Russia (17 million), as well as smaller numbers in Luxembourg, Belgium and the Netherlands.
He added that each country however had varied approaches to Islamic finance, with some facilitating retail operations and others disregarding it completely.(The Star Online)
KUALA LUMPUR: Malaysia's competitive advantage in Islamic finance is its comprehensive regulatory framework, according to a German economics professor.
“Malaysia has the necessary ingredients to be a hub for Islamic finance, such as its capital adequacy requirements, good governance and disclosure policies that are able to meet European financial standards,” said International Centre for Education in Islamic Finance (INCEIF) governing council member Prof Dr Volker Nienhaus.
“The German Bundesbank (central bank of Germany) has even sent its representatives to Malaysia's Securities Commission for training on Islamic finance.”
He said in comparison, the Gulf countries - the other major players in Islamic finance - have surplus liquidity but not capital adequacy. Their legal framework was also uncertain, he said. Nienhaus was speaking at a public lecture on Opportunities for Islamic Finance in the Arab Spring, Asian Summer and European Autumn, organised by INCEIF, Bank Negara's Islamic education arm.
 |
| Nienhaus: ‘Malaysia has the necessary ingredients to be a hub for Islamic finance.’ |
However, Nienhaus cautioned against excessive government intervention in the growth and adoption of Islamic finance, citing the example of Pakistan which took a top-down approach and ended up creating a less-efficient replica of its previous financial system.
“It took them 10 years to reverse this, and now Pakistan maintains a dual financial system,” he said.
Nienhaus said the Arab spring in North Africa and the Middle East had opened up opportunities for the growth of Islamic finance in the region as its current financial system was deficient and did not provide support to the entrepreneurial middle class.
Its existing banks were mainly tied to the discredited elites and focused on trade financing, he said. “Once the political unrest dies down, there will be huge market potential in the Middle East, especially in areas like financing for new businesses and takaful for the young, growing population.”
On Asia's prospects, Nienhaus said although there were concerns the economic slowdown in Europe and the United States would have some spill-over effects in the region, its impact would likely be moderate.
“Much of the trade and growth in Asia is Asian growth, it is within Asia,” he said.
He also argued that the failure of the current global financial system, as seen in Europe and the US, has fostered a more open outlook toward alternative financial systems like Islamic finance.
“Something is clearly wrong with the credibility of the (mainstream) banking sector. Previously, stress tests failed only eight banks and we thought we were safe. Now, the latest news appears to say that almost all banks are bankrupt,” he said.
He said there were notable markets for Islamic finance in Europe owing to the sizeable Muslim populations there, including the United Kingdom (two million Muslims), France (five million), Germany (three million), and the largest in Russia (17 million), as well as smaller numbers in Luxembourg, Belgium and the Netherlands.
He added that each country however had varied approaches to Islamic finance, with some facilitating retail operations and others disregarding it completely.(The Star Online)
Allowing higher foreign shareholding of local banks likely to be on a case-by-case basis
Reciprocity on bank stakes
PETALING JAYA: Allowing foreign banks to hold higher stakes in local banks may be an issue of reciprocity but it will probably give local banks a run for their money.
Bankers contacted in a random poll said they were unaware of such a move and opined that a clearer picture on any liberalisation of the current shareholding structure would probably emerge next year.
It was reported over the weekend that Bank Negara may liberalise the foreign shareholding in domestic banks, which currently stands at 30%, under the second leg of the financial services masterplan.
This move, expected on a case-by-case basis, is apparently aimed at preparing local banks for regional expansion and helping them tap opportunities within the Asean region.
“Of course, there will be some nationalistic feelings but in the end, it is up to the regulators and government how they see the sector evolving and what they want out of it,'' said an industry observer.
Foreigners will want a bigger piece of the pie; they are usually part of a global group that will provide the support, resources, talent pool and products that will challenge the locals to work harder.
“Liberalisation in this aspect can result in an intense situation where the market will be crowded and there will be competition for talent,'' said analysts.
Early this year, Reuters reported from Australia, quoting Prime Minister Datuk Seri Najib Tun Razak that he was open to the idea of Australia and New Zealand Banking Group (ANZ) increasing its stake in AMMB Holdings Bhd to 49% from about 24%.
Reciprocity became an issue in the case of Indonesia considering a rule to limit the foreign shareholding in its banks.
It is suggested that such issues be solved at the level of the Asean banking framework; nevertheless, Malaysia may be studying its implications from a country's perspective.
In April, foreign ownership limit for investment banks, Islamic banks and takaful companies was raised from 49% to 70%.
Besides ANZ's stake in AMMB Holdings, other notable foreign shareholding in domestic banks include:
Temasek's effective stake in 14.5% in Alliance Financial Group (AFG); Temasek owns 49% in Vertical Theme Sdn Bhd, the holding company that owns 29% in AFG. The other 51% in Vertical Theme is held by local firm Langkah Bahagia Sdn Bhd.
Aabar Investments PJS's 25% stake in RHB Capital; Aabar is sister company of Abu Dhabi Commercial Bank which had earlier bought the block.
Bank of East Asia's 24% stake in Affin Holdings Bhd.
As part of the liberalisation, licences have been awarded to banks from different countries but these represent relatively small start-ups. Buying a higher stake in established domestic banks represent a different ballgame in a bigger arena.
Other areas of focus in the upcoming masterplan involve responsibilities of directors, CEOs and senior management under a strict corporate governance framework and the development of a dynamic Islamic banking hub in Malaysia.(The Star Online)
PETALING JAYA: Allowing foreign banks to hold higher stakes in local banks may be an issue of reciprocity but it will probably give local banks a run for their money.
Bankers contacted in a random poll said they were unaware of such a move and opined that a clearer picture on any liberalisation of the current shareholding structure would probably emerge next year.
It was reported over the weekend that Bank Negara may liberalise the foreign shareholding in domestic banks, which currently stands at 30%, under the second leg of the financial services masterplan.
This move, expected on a case-by-case basis, is apparently aimed at preparing local banks for regional expansion and helping them tap opportunities within the Asean region.
“Of course, there will be some nationalistic feelings but in the end, it is up to the regulators and government how they see the sector evolving and what they want out of it,'' said an industry observer.
Foreigners will want a bigger piece of the pie; they are usually part of a global group that will provide the support, resources, talent pool and products that will challenge the locals to work harder.
“Liberalisation in this aspect can result in an intense situation where the market will be crowded and there will be competition for talent,'' said analysts.
Early this year, Reuters reported from Australia, quoting Prime Minister Datuk Seri Najib Tun Razak that he was open to the idea of Australia and New Zealand Banking Group (ANZ) increasing its stake in AMMB Holdings Bhd to 49% from about 24%.
Reciprocity became an issue in the case of Indonesia considering a rule to limit the foreign shareholding in its banks.
It is suggested that such issues be solved at the level of the Asean banking framework; nevertheless, Malaysia may be studying its implications from a country's perspective.
In April, foreign ownership limit for investment banks, Islamic banks and takaful companies was raised from 49% to 70%.
Besides ANZ's stake in AMMB Holdings, other notable foreign shareholding in domestic banks include:
Temasek's effective stake in 14.5% in Alliance Financial Group (AFG); Temasek owns 49% in Vertical Theme Sdn Bhd, the holding company that owns 29% in AFG. The other 51% in Vertical Theme is held by local firm Langkah Bahagia Sdn Bhd.
Aabar Investments PJS's 25% stake in RHB Capital; Aabar is sister company of Abu Dhabi Commercial Bank which had earlier bought the block.
Bank of East Asia's 24% stake in Affin Holdings Bhd.
As part of the liberalisation, licences have been awarded to banks from different countries but these represent relatively small start-ups. Buying a higher stake in established domestic banks represent a different ballgame in a bigger arena.
Other areas of focus in the upcoming masterplan involve responsibilities of directors, CEOs and senior management under a strict corporate governance framework and the development of a dynamic Islamic banking hub in Malaysia.(The Star Online)
Friday, October 14, 2011
Bank of Korea retains rates
SEOUL: South Korea's central bank has kept interest rates unchanged as the global economy weakened and insisted it had not abandoned its tarnished inflation-fighting credentials, although it gave few clues on its next move.
The Bank of Korea kept the base rate unchanged at 3.25% for a fourth consecutive month.(Reuters)
The Bank of Korea kept the base rate unchanged at 3.25% for a fourth consecutive month.(Reuters)
Yuan-denominated sukuk by Khazanah
PETALING JAYA: Khazanah Nasional Bhd has issued its first offshore yuan-denominated sukuk of 500 million yuan (RM246mil) via Danga Capital Bhd, a Malaysian-incorporated special purpose vehicle.
The three-year benchmark sukuk was priced through a book-building process on Oct 13 and at the tightest end of the price guidance at 2.90%, the company said in a statement.
The transaction drew a demand of 3.6 times book size, enabling Khazanah to upsize the deal to 500 million yuan from an earlier announced 300 million yuan.
Khazanah said its investors comprised financial institutions, asset management companies, private banks and statutory bodies from Malaysia, Singapore, Hong Kong, the Middle East and Europe.
Issued under the Malaysia International Islamic Financial Centre initiative, it is the world’s first Emas Sukuk denominated in yuan. The sukuk will be listed on Bursa Malaysia (Exempt Regime) and Labuan International Financial Exchange.(The Star Online)
The three-year benchmark sukuk was priced through a book-building process on Oct 13 and at the tightest end of the price guidance at 2.90%, the company said in a statement.
The transaction drew a demand of 3.6 times book size, enabling Khazanah to upsize the deal to 500 million yuan from an earlier announced 300 million yuan.
Khazanah said its investors comprised financial institutions, asset management companies, private banks and statutory bodies from Malaysia, Singapore, Hong Kong, the Middle East and Europe.
Issued under the Malaysia International Islamic Financial Centre initiative, it is the world’s first Emas Sukuk denominated in yuan. The sukuk will be listed on Bursa Malaysia (Exempt Regime) and Labuan International Financial Exchange.(The Star Online)
New service charter for commercial banks
PETALING JAYA: The Association of Banks in Malaysia (ABM) has introduced a standardised template for a customer service charter for commercial banks to improve efficiency and accountability towards consumerism.
The initiative, a collaboration between ABM and its members, is the next service launched following the well-received partner initiative last year which focuses on streamlining and simplifying processes and procedures of loan applications for small and medium enterprises.
Executive director Chuah Mei Lin said that aside from improving standards of service and build stronger customer-banker relationship, “the customer service charter also sets out the time frames within which a customer can expect the banks respectively to deliver the services highlighted”.
“In this manner, customers will be better equipped to set their expectations accordingly when conducting business with a particular bank,” she added, acknowledging that banks had to keep up with customers’ needs and maintain high-standard customer service in the competitive banking climate.
With the charter, customers can review all the information furnished and use the turnaround times as a comparative tool to select banking services.
Most member banks have posted their charters on their website and banking halls and a standardised template can be found on ABM’s website too.(The Star Online)
The initiative, a collaboration between ABM and its members, is the next service launched following the well-received partner initiative last year which focuses on streamlining and simplifying processes and procedures of loan applications for small and medium enterprises.
Executive director Chuah Mei Lin said that aside from improving standards of service and build stronger customer-banker relationship, “the customer service charter also sets out the time frames within which a customer can expect the banks respectively to deliver the services highlighted”.
“In this manner, customers will be better equipped to set their expectations accordingly when conducting business with a particular bank,” she added, acknowledging that banks had to keep up with customers’ needs and maintain high-standard customer service in the competitive banking climate.
With the charter, customers can review all the information furnished and use the turnaround times as a comparative tool to select banking services.
Most member banks have posted their charters on their website and banking halls and a standardised template can be found on ABM’s website too.(The Star Online)
Monday, October 10, 2011
Malaysia Budget 2012 highlights
KUALA LUMPUR, Malaysia - Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament Friday.
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil (S$8.7 billion)
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.
- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013
- RP2 main projects will include the East Coast Highway from Jabor to T'ganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre
- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012
- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013
- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil
- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes
- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment
- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project
- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas - To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month
- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases
- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established - RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced - Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided - For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500
Source:Asia One News
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil (S$8.7 billion)
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.
- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013
- RP2 main projects will include the East Coast Highway from Jabor to T'ganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre
- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012
- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013
- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil
- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes
- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment
- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project
- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas - To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month
- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases
- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established - RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced - Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided - For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500
Source:Asia One News
Maybank: Budget will promote Islamic banking
The 2012 Budget will further promote the comprehensive development of conventional and Islamic banking, insurance and takaful, investment banking and other financial services in terms of the range and offerings of products and services, Maybank president/chief executive officer Datuk Seri Abdul Wahid Omar said.
“We are extremely pleased that the Government continues to give a high priority for the growth and development of the financial services sector.
“Budget 2012 is no exception given the slew of tax incentives for the setting up of treasury management centres, sukuk issuance and transactions, private retirement scheme, exchange-traded fund, Skim Amanah Rakyat 1Malaysia and the development of Kuala Lumpur International Financial District,” he said in a statement on Friday.
Wahid, who is also chairman of the Association of Banks in Malaysia, said the budget was most comprehensive and reflected the Government’s effort to strike a balance between dealing with people, cyclical and structural issues.
He said the banking industry was grateful for the tax incentives for companies providing structured internship programme and scholarships as well as participating in careers fairs abroad.
This was because human capital development and attracting and retaining talent were one of the key issues facing the banking/financial services sector, he said.
Wahid said the further liberalisation of services sector would further promote financial services sector by enhancing the country’s post-industrialisation development strategy.
He said the review of Real Property Gains Tax (RPGT) was a good move to ensure macroeconomic and financial stability as well as social justice by curbing speculative activities and preventing excessive rise in property prices. “This is also balanced with incentives and allocations for the purchases and provisions of affordable and public housing schemes.”
Wahid also welcomed the Government’s commitment to reduce the budget deficit in 2012 to 4.7% of gross domestic product compared with 5.4% in 2011.(Bernama)
“We are extremely pleased that the Government continues to give a high priority for the growth and development of the financial services sector.
“Budget 2012 is no exception given the slew of tax incentives for the setting up of treasury management centres, sukuk issuance and transactions, private retirement scheme, exchange-traded fund, Skim Amanah Rakyat 1Malaysia and the development of Kuala Lumpur International Financial District,” he said in a statement on Friday.
Wahid, who is also chairman of the Association of Banks in Malaysia, said the budget was most comprehensive and reflected the Government’s effort to strike a balance between dealing with people, cyclical and structural issues.
He said the banking industry was grateful for the tax incentives for companies providing structured internship programme and scholarships as well as participating in careers fairs abroad.
This was because human capital development and attracting and retaining talent were one of the key issues facing the banking/financial services sector, he said.
Wahid said the further liberalisation of services sector would further promote financial services sector by enhancing the country’s post-industrialisation development strategy.
He said the review of Real Property Gains Tax (RPGT) was a good move to ensure macroeconomic and financial stability as well as social justice by curbing speculative activities and preventing excessive rise in property prices. “This is also balanced with incentives and allocations for the purchases and provisions of affordable and public housing schemes.”
Wahid also welcomed the Government’s commitment to reduce the budget deficit in 2012 to 4.7% of gross domestic product compared with 5.4% in 2011.(Bernama)
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