Effective real property gain tax of Malaysia Budget 2010
Fraud prevention – don't take risk dealing with unlicensed financial operators (Malaysia)
be extra careful of frauds.
For recession survival, beware of frauds.
Bank Negara Malaysia has some useful information which is useful to prevent potential financial fraud.
From its "Hyperlink",
we can find lists of licensed :
banking institutions,
insurance companies & Takaful operators,
dealers of foreign currency,
money changers,
non-bank remittance operators,
issuers of credit cards, charge cards, e-money, remittance services providers,
loss adjusters,
insurance brokers, Takaful brokers,
financial advisers.
Be very vigilant of having transactions with unlicensed financial operators.
Though they may not necessarily fraudsters, don’t take the risk.
It’s a matter of "what if".
Consumer may be more legally protected when he is dealing with licensed ones.
However, due diligence is still needed, especially if large amount of money is involved.
Bank Negara Malaysia’s website has also
"Financial Consumer alerts".
Check occasionally on Financial Consumer Alerts.
Among the ones mentioned:
Unauthorised withdrawals,
Misuse of BNM’s name,
Get-Rich-Quick schemes,
Warnings about companies, for e.g. G-Gold Gallery, PureInvestor.com Inc., Swiss Cash/Swiss Mutual Fund.
Check also on press release.
You will be able to see, for examples:
Sunshine Empire charged for illegal deposit taking;
Walton International Property Group raided..
These advices may save us from potential frauds.
Malaysia's first and second Economic Stimulus Packages
Malaysia’s 1st Economic Stimulus Package
PDF file
Malaysia’s 2nd Economic Stimulus Package
PDF file
its appendices
PDF file
SmartPengguna - a website to compare product prices in Supermarket Stores in KL, Selangor
Heard from Malaysia news today, there is this website called SmartPengguna.
website
I found this website useful.
This website is useful to compare prices of products sold in Supermarket Stores (Carrefour, Giant, Jusco, Mydin, TESCO) in Wilayah Persekutuan KL (Federal Territory) and Selangor. Carrefour, Giant, Jusco, Mydin, TESCO are the main Supermarket Stores in Malaysia.
We can select the Supermarket Stores near to our home and select the products to be compared (currently there are 8 categories available). Note the date/time the information is updated.
We can also get Ministry news and user generated articles from the "News, Articles, Feedback, Q&A" portion.
This type of website is useful to reduce information cost/information asymmetry. Consumer can compare the prices first before taking a trip to the Supermarket Stores. But the pre-requisite is the information has to be accurate and updated frequently. The cost of getting information to this website should not be too high, otherwise this website will not be sustainable.
If you like the concept of SmartPengguna as a way to save and survive in recession, check out my other posts on recession survival and fraud prevention too.
Malaysia’s Ministry of Housing and Local Government
A forum friend has recommended this website of Malaysia’s Ministry of Housing and Local Government.
website
This is the Ministry governing housing developers in Malaysia.
Some information from the website which may be useful for housebuyers:
Guidelines: (some highlights)
1. Guideline on licensing
Can learn a great deal on licensing of housing developers and moneylenders.
2. Guideline on housing and you (important)
This is very useful. It tells potential housebuyer what to caution for when buying a house.
3. Guideline on landscape
This is government guidelines on aspects of landscape, public parks, greening of nations etc..
Services: (some highlights)
1. Licensing (important)
We can search for registered developers/housing projects, moneylenders here.
2. Tribunal for homebuyer claims (important)
An easier, cheaper and faster means of dispute resolution for homebuyers claiming compensation/damages from housing developers.
Conditions, procedures, forms etc.. are available in the website.
3. Housing Legal Clinic
Providing advise to resolve dispute between house buyer and developer, especially to those who cannot afford legal advice
4. Prosecuted & Fined Developers (important)
Good to know which developers (and projects) have bad reputations. Avoid buying house from them.
Great website...
Real Estate Malaysia - The Board of Valuers, Appraisers and Estate Agents Malaysia
website
Quite a useful website to know more about Valuers, Appraisers and Estate Agents.
The Board of Valuers, Appraisers and Estate Agents Malaysia, under Ministry of Finance, Malaysia, is regulating the Valuers, Appraisers and Estate Agents practising in Malaysia.
Valuers, Appraisers and Estate Agents in Malaysia are governed under Valuers, Appraisers and Estate Agents Act 1981.
Some highlights from the website:
1. Qualifications
We can know what are the academic qualifications, professional qualifications and test of professional competence for registration as a Valuer or an Estate Agent.
Maybe we can search further to find out the body of knowledge to be a Valuer or an Estate Agent.
2. Fees
We can find out how much are the fees for valuation services, property management and estate agency, at least we can know whether we are overcharged.
3. Code of conduct
Great. Can find what are not allowed on Valuers, Appraisers and Estate Agents.
4. Search
Good to confirm whether your Valuer, Appraiser and Estate Agent hired are a legally registered one.
5. Role/Role of Negotiator
We can learn what are the roles of Appraisers, Estate Agents and Property Management and Negotiator.
It also shows current number of firms, registered members & probationary members.
6. Publications
A number of publications listed, with their price.
Most are not expensive. Of interest is "Malaysian Valuation Standards" (RM15).
Will this teach us "how to evaluate real estate in M’sia" ?
Note:
Do check out my other posts on Malaysia investment and real estate.
Real Estate Malaysia - Valuation and Property Services Department – Ministry of Finance, Malaysia
website
(in Malay, it is "Jabatan Penilaian dan Perkhidmatan Harta" (JPPH) )
I think it is a great resource to read about Malaysia’s Real Estate.
JPPH has 3 programmes:
1. Valuation and Property Services
2. National Institute of Valuation (INSPEN)
3. National Property Information Center (NAPIC)
Information by NAPIC is good for Malaysia Real Estate industry analysis.
Its quarterly Property Stock Report and Property Market Status Report are particularly useful.
Property Stock Report:
Inside the Property Stock Report, there is a summary of existing stock, future supply of residential property, commercial property, industrial property and leisure property in different states of Malaysia. Occupancy rates are also available. More detailed tables are also available for different types of property.
Property Market Status Report:
Inside the Property Market Status Report, there is a summary of new launches, property overhang, unsold not constructed property, unsold under construction property and commercial complexes vacancy. (Definition of what these include are in Technical Notes.)
Information on types, unit launched, sold and sales performance are available too. More detailed tables are available. It has details to the level of district, price ranges etc.., cool.
real estate - Malaysia National House Buyers Association
Buying property is a big decision. The amount of money involved is large.
There are a lot of pitfalls during the process. We need to be extra careful in every step.
Found this "Malaysia National House Buyers Association".
website
Some useful information:
1. Where to get help: FAQ and Forum Board, contact and advice centre
2. Statistics:
This shows complaint statistics (available from 2000 - 2006).
We will be able to take a glimpse of what can go wrong in property buying, for examples:
(the list is not exhaustive…)
- strata titles,
- management & maintenance,
- late delivery & LAD claims,
- certificate of fitness,
- abandoned projects, (look at abandoned projects)
- shoddy workmanship & defects,
- non-adherence to building plans,
- infrastructure,
- failure to recovery on awards/prosecution of awards – section 16AD,
- compensation delays,
- payments…
3. Buyer watch issues
We can find lots of issues/news on Malaysia’s property/housing.
Many are newspaper articles.
4 Buyers’ group list
We can find existing owners’ association/committee (in the form of Yahoo Groups, blogs, forums) of some housing projects. Useful if you are buying 2nd hand property and wish to find out info or existing problems of that housing estate/project. Useful also if you have problems related to your house and wish to join forces with others in the same housing estate/project.
4. Useful Links
These links are extremely useful. We can find links to many real estate industry participants here. Explore..
5. The Laws/Guidelines
Laws like:
- Building and Common Property (maintenance and management) Act
- Housing Development (Control and Licensing) Act,
- Strata Titles Act,
- Street, Drainage and Building Act,
Court cases are also available here.
6. Experts’ views
Laws of Malaysia
Without laws especially those governing investment and business aspects, markets cannot function well, if even function at all.
Changes of laws and regulations are also important to valuation of companies.
Modification of laws and new laws can create, boost or even destroy an industry.
Functioning of a country’s legal system is also an important intangible when doing country analysis.
Website of Attorney General’s Chambers (Jabatan Peguam Negara) of Malaysia is a good resource for laws in Malaysia.
List of laws that are related to investment, business in Malaysia:
website
They are classified into:
Banking and Finance Laws
Commercial Laws
Corporate and Business Laws
Constitutional Law
Custom Laws
Development Corridor Laws
Dispute Settlement Laws
Employment Laws
Environmental Law
Immigration Law
Industrial Laws
Insurance Laws
Intellectual Property Laws
Land Laws
Local Government Laws
Promotion of Investment Laws
Securities Laws
Shipping Law
Taxation Laws
Cool..This is quite a surprise. I didn’t expect there are laws like Development Corridor Laws, Promotion of Investment Laws etc..
For investment, those laws under Banking and Finance Laws, Securities Laws are particularly relevant.
List of laws (with PDF files) in Malaysia:
link
We may not need to know in details these laws to start investing, but it’s good to know where to look for the information when needed.
Linked Notes, structured debt (2) - Malaysia
Caveat Emptor (buyer bewares) is often the rule. However, information asymmetry often disadvantaged the investors, especially when the investors are of lower educational level, not knowing English and under excessive sales gimmicks..
Sellers had the advantages. Sales pamphlet’s facts may be selectively presented; prospectus may be available only after the sales; high risk product (like LNs) be recommended to low risk investors etc..
I just wonder whether these Linked Notes are marketed in Malaysia to the general public and what the regulator’s standpoint on Linked Notes.
Found this "Guidelines on the offering of structured products" (2007) from Securities Commission of Malaysia:
PDF file
The above guidelines are applicable to :
Equity LN, Bond LN, Index LN, Currencies LN, Interest Rate Linked Notes, Commodity LN, Credit LN etc..
In my opinion, the requirement that makes a difference and gives investors’ extra protection are the "suitability and fair dealing requirements".
Excerpts of some of the notable points inside (refer to the PDF file for details):
(bracketed text below is my comment)
1. ....primary seller shall adopt fair dealing best practices when dealing, marketing and selling structured products to investors…. (this puts the responsibility to the seller)
2. ....different standards of fair dealing in relation to institutional investors and investor individuals…
(this sets a more stringent requirement to sales to investor individuals)
3. ...giving an investor individual who invests in structured products during an offer period, the option to obtain a full refund of his principal investment sum within three working days of such investment or the remaining offer period
(a cooling off period; good for investors who are bombarded with sales gimmicks)
4. A primary seller should endeavour to make an investor understand the risks in relation to investing in structured products before marketing and selling structured products to that investor.
(this again puts the responsibility to the seller)
i. know your client: ……primary seller should take all reasonable steps beforehand to assess the client’s financial position, investment experience and investment objectives.
(not only puts responsibility to the seller, it also sets the proper sequence of the sales process)
ii. duty of care: …..financial risks and potential losses that may arise from investing in structured products are fully explained to clients before the client makes his investment decision
iii. sales personnel: …. specifically identified personnel who have a financial background and possess adequate knowledge and understanding of structured products, particularly when dealing with investor individuals….. (only peoples with adequate product knowledge can sell)
iv. provided risk disclosure statement: …..risk disclosure statement is to be provided separately from the application form or other document constituting a contract between an Eligible Issuer and the investor, and is to be furnished to the potential investor together with other promotional and sales documents, before any binding contract is entered into by the investor….
v. confirmation of disclosure by client: …..primary seller should invite the client to read the risk disclosure statement, ask questions and take independent advice if the client so wishes….client should be requested to sign a confirmation..
vi. investors individual: …primary seller should ensure that a higher standard of diligence is exercised when dealing with investor individuals… (this sets a higher standard for sales to investor individuals)
I hope these guidelines have helped reducing/eliminating misrepresentation in LN sales in Malaysia and Malaysian investors are not affected by these LNs.
If that is the case, special thanks should be given to the Securities Commission. It has safeguarded the investors’ interest.
changes in PIDM’s deposit guarantee
Factsheet
List of financial institutions guaranteed under govt deposit guarantee:
(list of Commercial Banks, Islamic Banks, Investment Banks, International Islamic Bank, Deposit-taking Development Financial Institutions):
list
FAQ
Industry Analysis – get data from MICE
Malaysia Convention & Exhibition Directory
website
Look for calendar of events .
It shows a list of events, conventions, exhibitions that have been held and are going to be held.
We can get a lot of information from Industry Exhibition, for e.g
- Industry participants (industry leaders, challengers, numbers of main participants etc.)
- Buyers
- Suppliers
- Industry publications, magazines, newsletters
- Industry groups
- Regulators
- Industry experts
- Talks/seminars (sometimes presentation materials are available)
- Products, niche markets etc…
Take for example, from Calendar of Events,
choose ISF 2008 (17 June – 20 June 2008)
go to ISF website (International Security & Safety Expo & Forum) (click on the logo),
you can get "e-brochure" (can find related Ministry, industry body, lots of industry participants can be found inside).
The logo shows the sponsors (usually important industry players), industry publications etc.
We will be able to get even more information about the industry cluster (to use Michael Porter’s word: "cluster") if we continue to search for the sponsors, industry publications, professional bodies etc.
We have not even set foot on the real Exhibition and already got so much information :-)
Malaysia - 2007 Auditor-General Report
2007 Auditor-General Report (only Malay version available as of now)
2007 Auditor-General Report
(going a level up will be other Audit Report)
- It comes with :
Penyata Akaun Awam & Pengurusan Kewangan
(can see how Ministries, government agencies’ financial accounts are managed) - Pengurusan & Aktiviti Kementerian/Jabatan dan Pengurusan Syarikat Kerajaan Persekutuan
(can see what are the activities carried out by Ministries, their structures, new projects etc.. a good source of information)
From (a), (Sigh) What a mess ! Lots of rooms for improvement !
Page 20: Table showing weaknesses of expenditures for development
(subsequent pages showing the details and amount involved. )
Page 74-75: "scores" for financial management of different Ministries, Departments
Page 115: Conclusion
Both reports also have some photographs showing examples of what need to be improved.
Seems like this Audit is really painstakingly done.
Hopefully, those weaker Ministries & Departments can buck up as soon as possible and improve themselves in financial "governance".
Economic Analysis : Malaysia
Where to get data for economic analysis of Malaysia ?
1. Bank Negara Malaysia
BNM website
Some of the data available:
National Summary Data,
Statement of Asset & Liabilities (official international reserves position) ,
detailed breakdown of official international reserves,
rates like: exchange rate, interest rates, Islamic interbank rates,
Malaysian Government Securities ("risk free rate" for Malaysia, useful in investment calculation. Also can look at MGS yield curve),
Kijang Emas prices (gold price),
primary issues of all instruments etc.
- Some information comes with downloadable historical data or historical chart. A good source to see the trend of the parameters.
- By checking Advance Release Calendar, we can proactively know and check for timely, relevant data, instead of passively waiting to see the same data appearing in newspaper etc..
- Monthly statistical bulletin is a compilation of monetary, financial & macro economic statistics. A good one-stop summary.
2. Department of Statistics, Malaysia
website
We can find macro-economic statistics for e.g population, vital statistics, GDP/GNI, BOP, external trade, exports, production, CPI, PPI etc. from the website. The growth rate is useful as a benchmark for economic growth.
Disclaimer
The opinion post on this blog is personal and is not an inducement to buy or sell any investment products. The author of this blog will NOT be held responsible for any losses incurred due to the reliance on any content of this blog for investment decisions.

