Year 2010 Budget For Malaysia

The 'Malaysian' Budget for Year 2010 seemed promising for some companies out there, but to what extent can you expect out of the budget to help your business grow faster?

It has been said in the main media that our Prime Minister, Mr. Najib has planned out a "Shrinkage of Budget Deficit" plan. Just to satisfy the technical people reading this - The Malaysian government intends to reduce expenses to falling offset revenues. Of course, you can read that anywhere. While the purpose of "The Accounting Digest" is to provide "between-the-line" explanations pertaining the finance and accounting industries, stories of what the Malaysian government is planning to do can vary.

Malaysia's Budget 2010 Injecting billions of Ringgit as stimulus packages often come with one main responsibility every receiver and giver has to handle - Discipline. It's quite impossible to expect small companies to positively response to economic downturns, albeit the fact that their management practices have good cash reserves, financed well or practices excellent financial management.

The RM67 billion stimulus plan is measured to encumber businesses from fallouts, at the same time allow small timers to grow competitively. Yet again:

- Malaysia has unveiled RM67 billion (US$19 billion) of stimulus measures to counter a global recession that policy makers predict may cause the Southeast Asian economy to shrink as much as 5 per cent in 2009.

- The additional spending will swell this year's budget shortfall to 7.6 per cent of gross domestic product, the biggest in 22 years, the government said in March.

- That prompted Fitch Ratings to lower Malaysia's long-term local-currency credit rating to A, the fifth-lowest investment grade, from A+, on June 9. It was Fitch's first rating cut for the nation's debt since the Asian financial crisis in 1998. -Business Times

Yet again, the Malaysian government has said to put focus in education & health infrastructures, public social frameworks, agricultural and export growth for the country. These are excellent to start with - But how long have we been putting focus on these basic needs?

Tax Measures to call for in 2010 Looking at everyday news and getting updates from the mass media can be informational and entertaining - But it comes down to evaluating your businesses from the very foundation of it. Since many financial analysts, experts and economists would charge you a bomb for just advices alone, The Accounting Digest will point out some highlights in tax functions to help you evaluate and understand better:

Filing tax returns is no joke. Don't expect the tax framework to benefit you. Instead, make it work for your business in particular.

• Withholding tax system - Income tax from employees paid directly to the Tax department. For small companies, a financial restructuring plan can be done, but multiply that by 20 - 100 employees. Ask us how you can perform proper financial restructuring on withholding tax on your company.
• Taxation Fees - Corporate tax return fees, bookkeeping (in some cases) fees, company secretarial fees, etc. Since tax filing is complicated and varies between businesses, your tax professional can now provide you a list of what to declare, what can be declared and to what extent.
• Tax losses and group relief - (In taxation) When total expenses are more than income, you can incur a loss for taxation purposes. For certain industries, tax losses are at 70%. If you're unsure about how to go about this, be sure to ask your local tax professional.

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Malaysia Offers Wonders to the Tourist

Malaysia was first given the name in 1963 after the Federation of Malaya, North Borneo, Sarawak and Singapore formed a federation comprising 14 states. At that time other names were considered too, among them was Langkasuka which was the name of a historic kingdom in the same area.

In the year 1511 Portugal established a colony in Malacca, which is situated on the east coast of Malaysia, but they were always in conflict with the Sultanate of Johor and the Sultanate of Aceh. The conflict lasted on until 1641 when the Dutch allied with the Sultanate of Johor to gain control from the Portuguese of Malacca.

Jumping forward in time, in 1963 the Federation of Malaysia came about. Initially the Sultanate of Brunei had wished also to join the Federation but due to pressure from some members of their population and some other issues to do with oil payments, they pulled out of the agreement.

In the early years of the Federation and independence, troubles continually reared up from Indonesia and President Sukarno, and also with Singapore's exit from the Federation in 1965. Then, the Philippines made a claim upon the state of Sabah.

Furthermore, due to the large racial variation, mainly made up of Malays, Chinese, Indians and ethno tribes people such as the Iban, there is a very delicate set up with the proposed idea that all peoples are to be treated fairly. Many people however feel that the political system is very much in favor of the Malays at the expense of all other races - the Chinese feel themselves to be treated very unfairly.

The governmental system has been modeled upon that of the British system, which is a legacy of colonial rule. From the date of independence from Britain in 1957, Malaysia has used a multi-party coalition to govern, which is known as Barisan Nasional.

Malaysia is now made up of 13 states, 2 of these are in Malaysian Borneo - Sarawak and Sabah, and 3 federal territories. The states are subdivided into districts, which are individually referred to as mukim. Governance over the country is divided between both federal and state governments.

Malaysia is by land mass the 66th largest country in the world being 320,000 km square, which is a similar size to Vietnam, New Mexico and Norway. Total population is 28 million which makes it the 43rd most populated country in the world which is similar to Venezuela and Saudi Arabia.

Article Source: http://EzineArticles.com/?expert=Joseph_Archibald