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Tuesday, February 2, 2016

HSBC to freeze salaries, hiring in 2016 in battle to cut costs

 
Video: https://youtu.be/Q4V8L-98LVY  

Why Refusing a Pay Cut May Get You Fire?

HSBC Holdings Plc will impose a global hiring and pay freeze as part of its drive to cut as much as $5 billion in costs by the end of 2017.

The measures, which affect the consumer and investment banking businesses, were outlined in a memorandum received by employees on Friday, Gillian James, a spokeswoman for the bank, said Sunday in an e-mailed statement. Europe’s largest bank, which will release full-year earnings on Feb. 22, is mulling whether to move its headquarters away from London, partly because of the tax burden and tougher regulatory scrutiny.

“This is in line with HSBC’s moves to lower operating costs,” said Richard Cao, a Shenzhen-based analyst at Guotai Junan Securities Co. “HSBC can’t escape from the global economic slowdown and worsening asset quality like other global banks.”

HSBC Chief Executive Officer Stuart Gulliver, 56, in June outlined a three-year plan to pare back a sprawling global network by shutting money-losing businesses and eliminate as many as 25,000 jobs as he seeks to boost profitability. Barclays Plc extended a freeze on hiring new staff indefinitely in December, while European lenders including Credit Suisse Group AG and Deutsche Bank AG are cutting thousands of jobs to shore up earnings.

The moves were reported earlier by Reuters.

The shares fell 1.6 percent to 484.25 pence at 10:10 a.m. in London, extending losses this year to about 9.6 percent. They dropped 12 percent in 2015.


Under its three-year plan, the London-based lender is seeking to reduce the number of full-time employees by between 22,000 and 25,000. In the U.K., the bank may eliminate as many as 8,000 jobs.

As part of its focus on more profitable markets, HSBC is reviewing its operations in Lebanon and may exit the Middle Eastern country, people with knowledge of the matter said earlier this month. The bank is closing its Indian private-banking business, people familiar with that move said in November.

HSBC is close to concluding an eight-month review into the best location for its headquarters, with Hong Kong seen as the leading candidate city. The lender is likely to stay based in London due to the vast logistics of relocating, Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc, told Bloomberg Television in January. Aberdeen is one of the British bank’s biggest shareholders.- Bloomberg

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US playing a messy game of provocations in SCS; China build up defense to thwart the provocation

In October, the US guided missile destroyer USS Lassen conducted a "freedom of navigation" operation within 12 nautical miles of China's Meiji and Zhubi reefs.

In December, a United States Air Force B-52 bomber "accidentally" flew within 2 nautical miles of China's Huayang Reef.

On Saturday, the Pentagon announced an "innocent passage" by the guided-missile destroyer USS Curtis Wilbur within 12 nautical miles of China's Zhongjian Island.

On the surface, these are "routine" operations US Senator John McCain says are "normal occurrences" China will have to accept.

Yet this is not a Tom-and-Jerry kind of game where no party gets seriously hurt.

There is real potential danger, because the US challenges to China in the South China Sea are showing a trajectory of escalation.

Zhongjian Island is part of the Xisha Archipelago, where there is no current, active dispute, and hardly part of the issue of the day.

The Pentagon did display some diplomatic sophistication this time, claiming that the USS Curtis Wilbur "challenged attempts by the three claimants-China, Taiwan and Vietnam-to restrict navigation rights and freedoms around the features they claim by policies that require prior permission or notification of transit within territorial seas".

Ignoring the fact this violates the US' recognition of "one China", reaffirmed by US Secretary of State John Kerry on Wednesday, the Pentagon's statement raises legitimate suspicions that it has an agenda to further complicate the South China Sea issue.

As in the rest of the South China Sea, there is no evidence the named "claimants" are attempting to "restrict navigation rights and freedoms". Enlarging the South China Sea issue by extending it to the Xisha Archipelago may be an attempt to drive a wedge between the mainland and Taiwan by dragging the latter into a long dormant and increasingly forgotten "dispute".

The US wants a larger role in the Asia-Pacific. And it is bent on preempting a perceived Chinese challenge.

There is no better way to do this than by making things messier, to make itself "needed" and "wanted".

What China needs and wants is peace, but as the Chinese saying goes, while the tree craves calm, the wind will not abate. Beijing needs to react accordingly, and prepare for all possibilities.

However, the country learned the significance of comprehensive national strength the hard way. It should not be distracted. It should rise above stress responses and stay focused on its development agenda. - China Daily)

Build up defense to thwart US provocation 


China firmly upholds her sovereignty and maritime rights and interests in the South China Sea. [Photo/Xinhua]

The US on Saturday sent one of its naval vessels within 12 nautical miles of the Xisha Islands in the South China Sea. The move, according to the Pentagon, was about "challenging excessive maritime claims that restrict the rights and freedoms of the United States and others." The Chinese side criticized the behavior of a "serious political and military provocation."

Until recently, China-US frictions have been fixed on the Nansha Islands. The latest intrusion by US vessels is a high-profile US provocation that has expanded to the Xisha Islands. Xisha is under China's actual control and China has released the territorial sea baseline of the Xisha Islands, including Zhongjian Island. Therefore, the US provocation this time is more vicious.

Currently, China and the US have been focused on making their own moves in the South China Sea disputes. China is building islands in accordance with the law, and the US cannot prevent China from doing so despite strong protests. The US sent warships to provoke, and China protests against it strongly, yet with few effective countermeasures.

It is hard to evaluate the strategic nature of Sino-US confrontations in the South China Sea. China seems to have more room to maneuver, while the US apparently has more control over the overall situation.

Since it happens at the door of China, China feels that the US is circling to contain it and the US vigilance against China is aggressive. There is a long way to go before China can have an equal footing with the US. Such equality can only be achieved with the build-up of strategic strength.

China's military strength still significantly lags behind that of the US. If the US is ready for a face-off in the South China Sea, it can quickly gather its military strength despite the far distance.

We also face similar setbacks in the East China Sea. We bear enormous pressure from Washington in our peripheral areas, and the relative backwardness of China's military might is the weakest link in our competition with the US. Chinese people must be clear about the broader strategic significance of this reality.

The US provocation comes ahead of the 2016 two sessions which are scheduled in March. This reminds us that we must retain a high growth rate of military spending in spite of the economic downward trend.

The defense expenditure of a big power must constitute a certain percentage of its overall expense. China's military budget only takes up 2 percent of its GDP, much lower than the US figure of 4 percent. Before we reach the same ratio as the US, we should hold a cautious attitude toward decreasing the defense budget.

China needs to accelerate its speed of building up strategic strike capabilities, including a nuclear second-strike capability. The US provocation will not stop due to Chinese objections. In the short-term future, we will have limited means to counter the US.

It will probably take China a dozen years or longer of military build-up before it faces a different situation in the South China Sea. - Global Times

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Liberating Malay mind: Shed ‘excess baggage’ of privileges !

 Malays must shed ‘excess baggage’ of privileges, says Rafidah 


SHAH ALAM: The Malays should drop the “excess baggage” hobbling them, such as the thinking that they are “special” and deserving of certain privileges, says Tan Sri Rafidah Aziz.

Instead, she said they should move forward by nurturing themselves with a recalibrated mindset.

Speaking at the launch of a book titled Liberating The Malay Mind by author Dr M. Bakri Musa, Rafidah said that the excess baggage of the Malays included the obsession that the community was special and more privileged than the others, in an ideal that was bolstered since the formation of the New Economic Policy (NEP).

“We (Malays) have been taught that we are special and privileged. But, we must know that the NEP was introduced because we were so far behind in knowledge and economy, and we needed assistance.

“It was not because we deserved it, nor was it that we must have it because the Malays were special,” she said in her speech.

Rafidah said it was a shame that after all these years, the Malays were still imprisoned by the thinking that they were special and deserving of certain privileges.

“It is shameful that we still want the “crutches” although our legs are fine, or still want to depend on the special status when we are able. It is our mindset that is stopping us from moving forward.”

Rafidah called on the Malays to face the future by eradicating the narrow thinking as well as their over admiration on foreign culture.

“All Malays are Muslims in Malay­sia. So, be a Malaysian Muslim. We are not Arabian, we are Malaysian first.

“We must realise that we are an integral component in Malaysia.

“It is necessary for us to nurture the younger generation with good universal values, such as integrity, trustworthiness, responsibility, accountability, discipline and respect for others.

Otherwise, we will be stuck in a time warp and end up going nowhere, she added.

Sources: The Star/Asia News Network

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Saturday, January 30, 2016

Liberating Malay mind, unnecessary hoo-ha and nonsense!

Liberating the Malay mind


Open-minded people are usually more tolerant, and when you are tolerant you are also moderate in your actions and behaviour.

Open-mindedness started to disappear from the scene when we began to have indoctrination in our schools and universities. In other words, when politics and religion got into the class rooms and lecture halls.

LIBERATING the Malay Mind is the title of the book by Dr M. Bakri Musa, a Malay doctor who practises medicine and lives in California. Written in English and Malay, the book was published by ZI Publications.

The second edition will be launched on Jan 30 by another famous and successful Malay, Tan Sri Rafidah Aziz. As a Malay, I am proud to be associated with these two Malays whom I consider to be “open-minded”.

Open-mindedness is essential if we want to be a moderate and tolerant society.

Moderation is only possible if people understand the issues and are willing to talk about them openly. They can only understand difficult issues if they are willing to think rationally.

Being open-minded means that even if you think you are right, you know that you could be wrong, and you must therefore always be willing to consider other arguments and ideas.

Open-minded people are usually more tolerant, and when you are tolerant you are also moderate in your actions and behaviour.

An open-minded person is willing to engage in discussions and is generally flexible in his or her approach to things. Many leaders like the late Nelson Mandela, artists, writers and scientists attribute their success to their open-mindedness.

In Malaysia, Malays of my generation and those who are older are generally more open-minded than the present crop. This is partly because our educational approach was more focused on building skills such as reading, writing and thinking.

Science and the arts were subjects that had no socio-political dimension. They were studied purely to understand the physical world, culture and human nature.

Interpersonal relations were measured according to how we dealt with others as human beings, rather than which race we belonged to.

Success was measured by the level of skills we attained after years of schooling, and by the job skills we required to feed our families upon graduation. Back then nothing more than a bit of fun here and there got into our bloodstream.

Open-mindedness started to disappear from the scene when we began to have indoctrination in our schools and universities. In other words, when politics and religion got into the classrooms and lecture halls.

Education now includes courses on political awareness, and a heavy dose of religious instructions. If teachers and educationists do not exhibit some form of conforming identity or partisanship to “political and religious needs”, then they might not go far in their respective fields.

A new sense of historical perspective is also considered necessary. The biggest stumbling block to open-mindedness is, of course, education. Both secular and religious education in this country are not like those in the Islamic world of the 8th century.

Baghdad then was the centre of learning, and had the biggest public library in the world. Jews, Christians and Greek scholars of all faiths and creeds gathered to pursue knowledge without restrictions. It was never vacuous, mediocre and rigid, both in content and methodology, like what we have here today.

The culture of having an intellectual and pluralistic approach to understanding the world, including religious tenets, has not taken root.

In fact, such an approach is frowned upon and considered blasphemous. The state’s monopoly and control of religion is absolute.

The outcome is therefore predictable. Younger Malays are an angrier lot; they are less tolerant and moderate than older Malays. Just read their Facebook accounts and social media comments on any subject that is faintly controversial and you will appreciate what I mean.

They hurl abuse and make personal comments that have nothing to do with the subject matter in question. Extremism in their thinking is clearly visible.

They always see problems as if Islam and the Malays are under constant attack.

My concern in all of this is that the attributes these Malays/Muslims are exhibiting, besides being dangerous to the country’s peace and stability, are actually detrimental to their own well-being.

Their “enemies” – such as Chinese, Jews and the West in general – will continue with their ways and not be bothered with the tantrums thrown by these Malays.

They will continue with their educational and economic dominance. They will continue to make inroads in science and technology. They will continue to produce Nobel Prize winners.

What will become of these Malays? They will continue to be fascinated with ideas of violence and destruction, like the Islamic State teachings.

They will continue to adopt a rigid mindset which will make living in a multicultural 21st century setting more difficult. They can continue to listen to preachers and motivational speakers about how to defend their rights; but they will continue to be irrelevant because they will not be successful or dominant over things that matter.

They will not be able to truly develop the country and exploit its resources because they will lack the necessary know-how.

I am concerned that their frustrations over their own irrelevance will push them closer to those militants who blow themselves up. After all, suicide bombers are usually driven by their sense of helplessness, despair and alienation.

That’s why I hope more young Malays will read Dr Bakri’s book and attend the forum “Merdekakan Minda Melayu”, which will be held after the book launch.

I hope they will listen to what Rafidah has to say to find out what can make them more resourceful, and hopefully, successful.

One thing for sure though: they can only do that if they are prepared to liberate their minds from the toxic influences of the present.


By Zaid Ibrahim
all kinds of everything
Former de facto Law Minister Datuk Zaid Ibrahim (carbofree@gmail.com) is now a legal consultant. The views expressed here are entirely his own.


Unnecessary hoo-ha and nonsense



Common sense has slowly been taking a back seat over the last few years, as people get hysterical over the most ridiculous things.

I don't understand why we are not ashamed to admit our faith is weak, and that we should constantly protect it. Others people don't seem to have ths same problems.

FOR a country that loves having laws to govern everyone’s beha­viour, we are very peculiar about ensuring that people follow them.

For some people, we bring the full force of the law to not only pu­nish them but to also set as an “example” to others.

For others, we sometimes wilfully ignore the law and let them do what they want.

Then there are the people who ignore court orders because they say it conflicts with some other law. Why they don’t get charged with contempt of court, I don’t know, but I don’t have to be a lawyer to think this is weird.

Then there are people who stretch laws to mean and do other things.

Like assuming that fathers are the only parents of a child and therefore what they say goes. (To the students to whom I was explaining what gender discrimination means today, there’s your example.)

Additionally there are people who make things up because it’s a law that only exists in their head.

A Muslim parent whose child goes to a Chinese school talked about how it was not enough for the religious studies teacher that there is halal food available in the canteen, but that the Muslim kids had to sit apart from their non-Muslim friends as well.

Does she think that non-halal food can be breathed in?

Some people will undoubtedly say that children have a habit of sharing food and utensils so some may inadvertently eat some non-halal food.

But of course sharing even all-halal food isn’t very hygienic either and is something parents should teach their children not to do.

Thinking about this story, I rea­lise how common sense has slowly been taking a back seat over the last few years.

Some people can really get hysterical over the most ridiculous things.

The unnecessary hoo-ha over the eventually false story of pig DNA in chocolate comes to mind.

Then of course there is the obsession with the cross appearing everywhere.

Apparently if you live in a house where there is something that looks like a crucifix on the roof, you will change your faith as easily as you change your underwear.

It never ceases to amuse me how, while Muslims find it so difficult to convert anyone else, all it takes to convert a Muslim to some other religion is the sight of a crucifix, a statue, hearing a song, drinking some water and even, as I was once privileged to be told, looking into the eyes of the Pope.

Our faith is a delicate thing, which we hang on to by the thinnest wisp of a thread, vulnerable to whatever “infidel” breeze might blow our way.

As it happens, I spent 12 years in a Convent school where there were crucifixes everywhere inclu­ding a giant one on the roof of the school.

Not a single one of the Muslim girls who studied there has left the faith. But maybe our generation are stronger than the people today.

I don’t understand why we are not ashamed to admit our faith is weak, and that we should constantly protect it.

Other people don’t seem to have the same problem.

I talk to young foreigners about the practice of Islam in Malaysia very often and, as far as I know, none have converted yet.

I may have dispelled some stereotypes about Muslims however, particularly the one about us having no sense of humour.

Logic is not our strong point either.

I saw a video where a uniformed man was briefing some academics on how to spot terrorists.

He talked about their distorted beliefs about religion and their lite­ral reading of the Quran.

I thought he was doing a fair job until he decided to give some examples of people to be wary of.

All of a sudden, he cited some of the most progressive people in the country as those most dangerous.

The sheer illogicality was breathtaking. I think even the terrorists would be puzzled, because the very people he mentioned in the same breath as terrorist ideology are not exactly popular with the angry, head-chopping, bearded crowd either.

The people wreaking havoc in Syria these days don’t believe much in women’s rights, for example.

So does it make sense to label women’s rights advocates as terrorists?

But maybe the illogicality and nonsense are deliberate. Our people tend to look up to those in authority so perhaps when they say that black is now actually white, and good is now bad, we will simply believe it.

That approach assumes that our people are all mildly intelligent, of course, and have shaky values to begin with. But it seems to work.

Maybe ultimately that’s the only thing about how we are governed that makes sense.


By Marina Mahathir musings

Marina Mahathir is a human rights activist who works on women, children and HIV/AIDS issues. The views expressed here are entirely her own.


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Friday, January 29, 2016

Malaysia revised budget 2016 to GDP growth 4.0%~4.5% from original 4.0%~5.0%



PUTRAJAYA: The Government’s recalibrated Budget 2016 reinforces its pledge to look after the people in times of economic challenges.

The adjustments – reflected in 11 measures to be undertaken – largely serve to cushion the impact of the increase in the cost of living.

In presenting the adjustments yesterday, the Prime Minister said the recalibration and restructuring of Budget 2016 centred on the need to ensure the economy remained on a strong growth trajectory and to protect and safeguard the welfare and wellbeing of the people.

“These measures are proactive, transparent and realistic, in tandem with the current global economic challenges,” Datuk Seri Najib Tun Razak said in his 46-minute address to a packed audience comprising ministers, senior civil servants, economic stakeholders, foreign missions and representatives of non-governmental organisations.

Also present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, Chief Secretary to the Government Tan Sri Dr Ali Hamsa, Treasury secretary-general Tan Sri Dr Irwan Serigar Abdullah and Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.

Najib said the recalibration was within the range of initiatives and allocation of the Budget approved by Parliament last year, and emphasised that Malaysia was neither in economic nor technical recession.

He noted that other countries were also affected by the slowdown, with world trade anticipated to be moderate from 4.1% to 3.4% and economies such as the United States, Brazil and China expected to grow at a slower pace.

“This trend proves that we are not alone in facing the global economic challenges. Other countries too, are affected by the uncertainties,” he said, adding the drastic decline in world crude oil prices had a significant effect on the nation’s revenue.

The strengthening of the US dollar also affected the economy and the ringgit, which depreciated by 11.3% from RM3.77 in June last year to RM4.25 as of Wednesday, said Najib.

Other currencies also affected are Brazil’s Real which depreciated by 23.2%, China’s yuan (-5.7%), Cana­dian dollar (-11.3%), Russian ruble (-29.3%) and Singapore dollar (-5.6%) against the US greenback.

“In fact, the ringgit is underva­lued and does not reflect the true economic fundamentals. However, the ringgit is expected to better reflect the strength of the economy when the global financial market stabilises and oil prices recover to more reasonable levels,” said the Prime Minister.

Sources: The Star  mazwin nik anis, foong pek yee, ho wah foon, joseph kaos jr, adrian chan, tho xin yi, tashny sukumaran, victoria brown, nurbaiti hamdan, akil yunus, hanis zainal, joash de silva, andrebecca grace rajaendram

Malaysia can withstand oil shocks

Meeting the media: (from left) Irwan, Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar and Bank Negara governor Tan Sri Zeti Akhtar Aziz at the 2016 Budget recalibration forum

PUTRAJAYA: Malaysia can withstand sustained oil price decline to US$25 (RM105) per barrel.

According to secretary-general of Treasury Tan Sri Mohd Irwan Serigar Abdullah, the various scenario analyses conducted by the Government showed that Malaysia would still be able to sustain its economic growth and its recalibrated Budget 2016 would remain on track as long as crude oil prices remain above US$25 per barrel.

He, however, acknowledges that if oil prices were to go any lower than that, there will be great challenges, not only for Malaysia, but also for the global economy.

“In our estimation (for Budget 2016 revision), we even went to US$25 per barrel and we find that the budget will still be intact ... that is not a problem because we have a lot of measures in place,” Irwan said.

“But if it goes further down to US$20 or US$15 per barrel, it will be a world recession! Every oil-producing country will face a problem,” he told reporters at a forum after the Budget 2016 recalibration announcement here yesterday.

The Government had been forced to revise its Budget 2016 three months after tabling it in Parliament due to the continuous decline in global crude oil prices.

The recalibrated Budget 2016 saw the Government lowering its average-price assumption for Brent, which is the international oil benchmark, to US$30-US$35 per barrel, compared with US$48 per barrel under the original Budget 2016 when it was unveiled in October last year.

Under the recalibrated Budget 2016, the Government’s revenue is expected to decline by 3.5%-4.2% to RM216.3bil-RM217.9bil, compared with the originally estimated RM225.7bil, while its total spending (operating and development expenditure) will be cut by 3.0%-3.6% to RM255.7bil-RM257.2bil from the initially proposed RM265.2bil.

“Most of the forecasts by analysts and research institutes expect oil prices to average at US$30-US$40 per barrel this year. But we have taken a more conservative estimate of US$30-US$35 per barrel.

“If it goes below US$30 per barrel, we can still sustain economic growth; it won’t affect the budget that much, given the various mechanisms we have at hand,” Irwan said.

Brent crude was traded at around US$33.50 per barrel yesterday. Last week, prices of the commodity fell to a 13-year low of around US$28 per barrel.

Irwan said the Government was expecting additional income from various sources to act as “buffer” if oil prices declined further.

He pointed out that the Government had yet to add this additional income into its revenue projection for the revised Budget 2016.

Among the new measures expected to generate extra income for the Government were the sale of telecommunications spectrums and greater reinforcement to reduce leakages in duty-free islands such as Labuan.

As for managing its expenses, Irwan said the Government would continue to optimise and slash unnecessary spending to manage its operating expenditure; and prioritise high-impact projects and programmes for the country’s growth and people’s well-being, while postponing non-critical projects to manage its development expenditure.

“In terms of reprioritising our development expenditure, what we are going to do is to go further into project-implementation planning.

“There are some projects that will be shifted to beyond 2016 but some important projects that will have an impact on people such as rural roads, schools and hospitals will continue to be implemented,” Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar said.

Wahid, together with Irwan and Bank Negara governor Tan Sri Zeti Akhtar Aziz, were the three panellists at the forum yesterday.

Essentially, Wahid said, the Government would continue to pursue its overall fiscal consolidation targets.

On that note, the fiscal-deficit to gross-domestic-product (GDP) target for 2016 remained unchanged at 3.1% under the revised budget.

Malaysia’s GDP growth, however, had been revised to a narrower range of 4.0%-4.5% for this year, compared with 4.0%-5.0% under the original Budget 2016.

“We have detected moderation in domestic demand,” Zeti said. “The key to support domestic demand is to boost private consumption by putting money into the pockets of consumers through income transfers,” she added.

She pointed out that the newly introduced measure to allow employees’ EPF contribution to be reduced by 3% between March 2016 and December 2017 was one of the ways to boost consumer spending.

However, she stressed: “These measures are only temporary because retirement savings are important.”

By Cecilia Kok The Star

Main points of Budget 2016 revision

KUALA LUMPUR: Datuk Seri Najib Tun Razak had on Thursday announced the revised Budget 2016 in the face of the fall in crude oil prices which has affected the government's revenue.

The Prime Minister said the government revenue would be based on Brent crude oil at US$30 to US$35 per barrel when compared with the US$48 when it prepared the Budget 2016 last year.

He also said the economy was expected to grow at a slower pace of between 4% and 4.5% when compared with the earlier forecast of 4% to 5%.

Later, Ministry of Finance Secretary-General Tan Sri Dr. Mohd Irwan Serigar Abdullah said the recalibrated Budget 2016 remains on track even if Brent crude oil prices were to deteriorate further to US$25 per barrel

Main points of Budget 2016 revision:
  • Revised Budget 2016 will enable the government to save RM9bil
  • Govt will maintain the Goods and Services Tax
  • Fiscal deficit target at 3.1% of GDP
  • Govt revenue to be based on Brent crude oil at US$30 to US$35 per barrel from US$48
  • Trimmed GDP growth outlook for 2016 to 4%-4.5% from 4%-5%
  • Govt debt to be reduced to 55% of GDP
  • Govt will not peg the ringgit
  • Govt to reduce EPF contributions for employees by 3% from March 2016 to December 2017, contributors from employers unchanged Govt to give special tax relief of RM2,000 to individual tax payers earning RM8,000 a month for year of assessment 2015
  • Malaysia to restructure foreign labour system
  • Govt to give special tax exemption for some selected income groups
  • Govt to allocated RM5bil for the Higher Education Fund (PTPTN)
  • Govt will liberalise the control on import quotas or approved permits for eight agricultural produce for temporary period. It includes raw coffee beans, buffalo meat, beef and mutton
  • To enhance the efficiency and amount of tax collection, govt will double compliance and auditing efforts on tax evaders
  • Govt to give special consideration on relaxation for penalty on taxpayers to encourage them to come forward and declare their past years’ income. The tax arrears must be settled before 31 December 2016.
  • For duty-free islands, to reduce leakages which resulted in revenue loss of nearly RM1bil, the government will restructure the selling channel of cigarettes and liquors limited to duty-free outlets licensed by the Royal Malaysian Customs Department (RMCD)
  • The free duty treatment on imported vehicles in duty-free islands will be tightened.
  • However, the restructuring of sales on cigarettes, liquors and vehicles will not affect the tourists and locals who are residing in these duty-free islands
  • Govt will optimise the revenue from the telecommunication spectrum through a redistribution and bidding process which will be implemented soon

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