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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An emerging pioneer from the big five in the company, KLM's management style, methodology and business concept has brought forth revolutionary influence in both the Accounting industry Asia-wide. Find out more of their professional services at http://www.klmanagement.com.my/category/corporate-services/.

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