Malaysia catching up to Singapore for ease of business

[zzm9980]

We know this already...

http://blogs.wsj.com/searealtime/2013/1 ... od=WSJBlog

KUALA LUMPUR – Singapore has, for the eighth consecutive year, topped the chart for ease of doing business, according to an annual ranking published by the World Bank on Tuesday. Malaysia, however, came in a close second among countries in Southeast Asia, narrowing the gap with its highly efficient neighboring city-state.

Can't wait to see when the results start to account for added difficulty in hiring qualified employees, and Singapore starts to drop.

[Barnsley]

Will the Causeway get reverse traffic flow to what it is now...........

[Wd40]

Nice to see some competition
Its good for everyone, if Malaysia and Thailand up their game and close some of the gap with Singapore, so they can soak up some of the business that Singapore is turning away.

[ScoobyDoes]

Will the Causeway get reverse traffic flow to what it is now...........

It already is in reverse.

Right now, I bet, if you log into the webcam for the Causeway you will find it stuck with vehicles heading toward JB. It is now the same EVERY single day after around 9:30am.

I make a point of heading out before 8:30am otherwise it now takes 2-3hrs to cross. It's actually quicker, though further and costlier to get to JB City Centre through Tuas than it is via the Causeway during the day.

In addition, as some here know, I spent more than 5yrs living and working in Malaysia before coming to Singapore and I never had a problem with efficiency. Yes, taxes are higher and you can't be a numptie but it is relatively straight forward, though some patience is required at times - though that is more so the case here these days than before.

[Wd40]

Just curious, whats the overall income tax %in Malaysia for a salary of say 120K RM a year? In Singapore a salary of 100K SGD the overall tax rate is 3.5%, which is almost nothing, which lets us spend so much on rent.

[kookaburrah]

Bloody hell. I just googled my way to a malaysian tax calculator. For a salary of RM 400k you'd be paying a flat rate of 36.5%! Is this correct? Madness!

Just curious, whats the overall income tax %in Malaysia for a salary of say 120K RM a year? In Singapore a salary of 100K SGD the overall tax rate is 3.5%, which is almost nothing, which lets us spend so much on rent.

[ScoobyDoes]

Bloody hell. I just googled my way to a malaysian tax calculator. For a salary of RM 400k you'd be paying a flat rate of 36.5%! Is this correct? Madness!

Just curious, whats the overall income tax %in Malaysia for a salary of say 120K RM a year? In Singapore a salary of 100K SGD the overall tax rate is 3.5%, which is almost nothing, which lets us spend so much on rent.

Top rate of income tax will soon me 75% so still want to talk about madness.

I think I was paying around 20% whereas here it's about 5-7% but Wd40 is right that what we save in pure income tax here is more than covered elsewhere....... a GST of 7%, for example, which Malaysia still doesn't quite have.

[livingontheedge]

Its always been "easy" to do business in Malaysia.

[the lynx]

Bloody hell. I just googled my way to a malaysian tax calculator. For a salary of RM 400k you'd be paying a flat rate of 36.5%! Is this correct? Madness!

Just curious, whats the overall income tax %in Malaysia for a salary of say 120K RM a year? In Singapore a salary of 100K SGD the overall tax rate is 3.5%, which is almost nothing, which lets us spend so much on rent.

Top rate of income tax will soon me 75% so still want to talk about madness.

I think I was paying around 20% whereas here it's about 5-7% but Wd40 is right that what we save in pure income tax here is more than covered elsewhere....... a GST of 7%, for example, which Malaysia still doesn't quite have.

Malaysia will roll out 6% GST starting next financial year. It has been revealed in the recent Budget.

[QRM]

Its always been "easy" to do business in Malaysia.

LOL very true, if theres a "will" theres a way to get things done there.

[Fortan]

Its always been "easy" to do business in Malaysia.

LOL very true, if theres a "will" theres a way to get things done there.

If there's a will there's a 'cause-way'

[livingontheedge]

6% GST introduction vs a complimentary 1% reduction in income tax. Since I don't spend too much in Malaysia, it doesn't affect me.

But what does is the Capital Gains Tax of 30% on properties sold within 3 years, 20% within 4 years, 15% within 5 years, just when I was planning for disposals next year.

[ScoobyDoes]

Malaysia will roll out 6% GST starting next financial year. It has been revealed in the recent Budget.

Hence I said doesn't 'quite' have it yet.

What will happen to income taxes etc. as compensation will be helpful but the biggest problems for Malaysia is not so much income taxes, GST, etc. but the removal of subsidies.

Doing business HAS to be made easier to get FDI that raises income levels.

[Wd40]

I don't think GST is such a big money sucker. The 3 big ticket items that I can think off that really offset the low income taxes here are:
1)Rent
2)Children's education
3)Car ownership(can be avoided)

This is in comparison to Australia or UK where income taxes are high(35-40%) but you don't pay as much on the above items, I guess.

I don't own a car, my daughter will only hit playgroup early next year. So in my case its only the rent that's affecting me. I find many low income expats leave Singapore the moment their kids start going to serious schooling.

[PrimroseHill]

WD40, have to disagree with you there.

Income tax in UK is anything to 45%. Then you have NI (samey as social security). Then you all VAT at 20% other than food, children clothes and some other stuff. Council tax etc etc. If it moves it will be taxed. Taxi is a luxury treat. Tube/trains are expensive. You also have to pay tax on your savings - all bank accounts are taxable unless you put it in a tax wrapper or ISA.

Rent - yes it is cheaper if you live outside, beyond zone 5 or something. Anything that is W1-6 or WC, NW1-8 or SW1 and Chelsea, a tiny 2bed apartment will cost you something like GBP3200 per month.

Schools - well, thats a choice. Religious schools whereby you have to attend church religiously for 6-12months depending on the area and availability, now that's free. Ordinary state school is dependent on catchment areas and thats a mug's game. Or grammer school whereby it has a huge waitlist and your child has to either be Dave's pal or ultra smart.
My DD managed to get into a COE primary school. She couldn't get into the highly and oversubscribed COE secondary schools or renowed henrietta barnett. We took the decisiom to pay so she went to a COGNITA school. So, school fees are payable out of your taxed income. Go figure