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Malaysia catching up to Singapore for ease of business

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zzm9980
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Malaysia catching up to Singapore for ease of business

Postby zzm9980 » Wed, 30 Oct 2013 9:36 am

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.

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Postby Barnsley » Wed, 30 Oct 2013 10:50 am

Will the Causeway get reverse traffic flow to what it is now........... :D
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Postby Wd40 » Wed, 30 Oct 2013 10:56 am

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.

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Postby ScoobyDoes » Wed, 30 Oct 2013 11:48 am

Barnsley wrote:Will the Causeway get reverse traffic flow to what it is now........... :D



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.
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Postby Wd40 » Wed, 30 Oct 2013 12:08 pm

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.

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Postby kookaburrah » Wed, 30 Oct 2013 12:33 pm

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!

Wd40 wrote: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.

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Postby ScoobyDoes » Wed, 30 Oct 2013 1:54 pm

kookaburrah wrote: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!

Wd40 wrote: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.
'When Lewis Hamilton wins a race he has to thank Vodafone whereas in my day I used to chase the crumpet. I know which era I'd rather race in.'



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Postby livingontheedge » Wed, 30 Oct 2013 2:19 pm

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

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Postby the lynx » Wed, 30 Oct 2013 2:21 pm

ScoobyDoes wrote:
kookaburrah wrote: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!

Wd40 wrote: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.

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Postby QRM » Wed, 30 Oct 2013 3:10 pm

livingontheedge wrote:Its always been "easy" to do business in Malaysia.


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

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Postby Fortan » Wed, 30 Oct 2013 3:40 pm

QRM wrote:
livingontheedge wrote: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' :D

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Postby livingontheedge » Wed, 30 Oct 2013 3:57 pm

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.

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Postby ScoobyDoes » Wed, 30 Oct 2013 7:01 pm

the lynx wrote: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.
'When Lewis Hamilton wins a race he has to thank Vodafone whereas in my day I used to chase the crumpet. I know which era I'd rather race in.'



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Postby Wd40 » Wed, 30 Oct 2013 11:42 pm

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.

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Postby PrimroseHill » Thu, 31 Oct 2013 11:50 am

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


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