Capital market
Five foreign stockbrokers to
be allowed to operate in Malaysia to strengthen the distribution network
as well as increase liquidity;
Five leading global fund
managers to be allowed to operate in Malaysia to enhance fund management
expertise and improve the quality of services. Malaysia investment
instruments will also be promoted globally;
100% foreign ownership to be
allowed in venture capital companies to increase funding and expertise to
promote investments in the ICT sector;
Local stockbroking companies
which have merged with at least one other stockbroking company to be
allowed to establish four additional branches or electronic access
facilities permitted activities;
EPF to be allowed to increase
the size of its funds placed with local fund management companies,
including non-bank owned companies. Presently, EPF placement with local
fund management companies is about RM6 billion and this amount will be
doubled to RM12 billion within three years; and
Tax exemption on interest
income derived by non-resident companies from ringgit-denominated Islamic
securities and debentures, excluding convertible loan stocks, and
securities issued by the government.
Health
RM7.90 billion to upgrade health
services. Incentive payment for health attendants in hospital mortuaries
increased to RM100 per month from RM30; and
Excise duty on cigarettes
increased to RM81 per 1,000 sticks from RM58. Excise duty on liquor
increased to between 10 sen and RM28 per litre from between 5 sen and
RM23.40.
Goods
and services tax
Goods and services tax to be introduced in
2007 to reduce taxes on personal income and corporations.
Finance
Interest-in-suspense will be deemed
as special provision for bad sents and allowed as deduction in computing
income tax. However, income tax will be charged when such
interest-in-suspense is received.
Insurance
Individual income tax relief on
contributions to EPF and takaful as well as premium payments for life
insurance be increased from RM5,000 to RM6,000.
Civil
service
Bonus of 1.5 months for civil servants earning less
than RM1,000 and one month bonus subject to a minimum of RM1.500. Bonus to
be paid in two instalments -- October and December.
Merdeka bonds
Additional RM1.70 billion
Merdeka bonds to be issued up to end-2005.
Religion
Monthly allowance of RM450 per
mosque for Imam.
Real
estate
Real Estate Investment Trusts to be exempted from
tax on income distributed to unitholders taxed at 28%.
Education
Private institutions of higher
learning exempted from stamp duty and real property gains tax to those
that merge. Tax exemptions up to 2006.
Apparel
Import duty on selected raw materials
for apparel industry and herbicides from between 10% and 35% to between 5%
and 30%.
SMEs
Small and Medium Industry Fund 2 for
SMEs increased by RM1.50 billion to RM4.50 billion; and
The New Entrepreneurs Fund 2
increased by RM550 million to RM2 billion.
Rural
development
RM130 million allocated for rural electricity
supply programme;
RM95 million for water
supply. RM174 million for building kampung roads;
RM50 million for building and
completing rural roads; and
RM18.70 million to improve
rural health.
Housing
RM778 million to build 21,000 units
of low-cost houses for squatters in Kuala Lumpur and major towns.
ICT
& reading material
Tax rebate given to individual
taxpayers for purchase of PCs increased to RM500 from RM400; and
Tax relief given to
individual taxpayers for buying books increased to RM700 from
RM500.
Family
RM129.50 million for the family
development programme
