I Love Malaysia

My view of the budget 2010

The budget for year 2010 that has been tabled – frankly, i don’t think is very exciting, but given the fact economic situation globally is not favorable – its somewhat acceptable. As per any of the years, as a guy on the street – the wait for the budget is all about knowing what and how it will impact my daily live 😀

For this year….


Individual Tax Relief for Broadband

Since broadband is now a somewhat part of human right in certain country, and is at par with electricity and water by some people – the government is giving out tax relief of RM500 per year. Time to start keeping my broadband bill 😀

Review of Individual Income Tax

Come 2010, personal relief is increased from RM 8,000 to RM9,000! Can save more! On top of that, tax rate for people with income more than 100k, the income tax rate will drop from 27% to 26%! Double whooopie!

I wouldn’t be bothered with the increased in EPF and insurance contribution. The additional RM1,000 relief is solely for any increase in insurance annuity scheme paid after Jan 2010. This particular point is meant to help the insurance company to grow (grrr..)

Service Tax on Credit Card and Charge Card

Come 2010, each credit card or 529 plan that an individual own – they will be charge RM50 for principal and RM25 for supplementary. I think its a great idea since there are a lot Malaysian fell into the credit card trap. By putting the charge, it does somewhat help the individuals to give it a second and third thought before they start expanding their credit card collection.

Truthfully – i don’t think this particular step is enough, but its a start. I do hope that eventually, there is some sort of a regulation with regards to the mapping of TOTAL credit limit across finance companies against the individual income. I.e., my total credit limit across my citibank, maybank and hsbc should not exceed 3 times or 4 times of my monthly salary. By virtue of that, if in any case the individual fell into the trap, the amount of credit they owe won’t be too bad. If there is a requirement that the person travel, there must be a trend where corporation start issuing credit cards for the employees.

Tax Incentive for Knowledge Workers in Iskandar Malaysia

This is a freaking good incentive, but yet so confusing. Knowledge workers in qualified activities will be taxed at 15% INDEFINITELY! Holy cow. For those in the income group of 100k and above, thats a saving of 11% INDEFINITELY!. Geeze…

This incentive is still vague – as the knowledge workers who work between 24th October 2010 and 31st December 2015. Does it mean that I just need to work for 1 month and i get this benefit? Or is there a minimum amount? Or i need to own property. Well – I hope they will clarify on this matter soon, as I am sure there’s a lot of those dollar conscious bosses who wants to start moving to Iskandar. Can’t we have this in Cyberjaya? 😀


Tax on Disposal of Real Property

Hmmmm, the annoying tax is now back – at a fixed rate of 5%. No minimum and maximum holding period! Gulp…

Shall wait and see lah…

Anyway in summary, I think its an acceptable budget. I would put on a “Yay” in the parliament if I am a politician (more “Yay” if i have road construction company too). I would be able to save couple of thousands in the next year hopefully. And since times are bad, probably the extra savings will be pumped up into my investments (which some what will be ended up in the economy in terms of equities and bonds). Screw the plan to spend more to boost economy 😉 Where’s my Leica M9 (that’s 2009 budget for spending more for the economy)

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