By Farha Anati
Rizkin bt Chaharuddin
2013-121791
Topic : Ministry
of Finance
The Malaysian
economy is expected to strengthen further and projected to grow at a faster
rate of 4.5% to 5.5% in 2013 supported by improving exports and strong domestic
demand.
In the Economic
Report 2012/2013 released by the Ministry of Finance (MoF), it said “the
assumption was based on the global growth that will pick up especially during
the second-half of 2013 (2H13). It was also premised upon the expectation of an
improvement in the resolution of a debt crisis in the euro-area and stronger
growth in the economies of Malaysia’s major trading partners”.
Malaysia is a successful
nation. In a short period, we have changed the face of the nation from being an
agricultural and low income nation to a modern industrial upper middle income
country. This success did not come easy. It was a result of hard work between
the Government and the people who toiled together and held firmly to the
principle of systematic planning and effective implementation. This is the
blessing to a country with a responsible Government since independence. This is
not a Government that makes empty promises but a responsible Government which
always place the interest of the people above all and carries out policies for
the benefit of the people and well-being of the nation. The
government’s role in job creation is to convene people such as educators,
labour, the not-for-profit sector and business to work together towards common
goals and to encourage the right environment for businesses and for people to
succeed. They, in turn, will take risks, make investments, create jobs and
drive innovation. This approach is helping Malaysia’s economic recovery. 
First, we will maintain Malaysia’s
competitive business climate by keeping taxes at a low level. We will
extend the accelerated capital cost allowance for machinery and equipment —
providing assistance to manufacturers of $265 million over three years. We
will provide small businesses with greater relief from the Employer
Health Tax. By proposing to increase the amount of annual payroll that is
exempt from the tax. The cost of this tax break for small business would be
paid for by eliminating that same exemption altogether for larger corporations.
Second, we will continue to make investments in modern infrastructure
because we know that growth in Malaysia’s economy is supported by the movement
of goods and people. The Rural Transformation Programme (RTP) complements the
national transformation initiatives. RTP will transform the rural areas to
attract private investments, create employment and economic activities as well
as provide opportunities for the younger generation to return and work in rural
areas.
On
private investment, Malaysia is expected to post a strong growth of 13.3% in
2013 (2012: 11.7%) attributed to the ongoing implementation of the Economic
Transformation Programme projects. Each investment vehicles have their own
advantages, as well as disadvantages. It varies based on individual
preferences. The general rule of thumb is to not put all your eggs in one
basket. Diversity is the key. Therefore, the best investment in Malaysia would
be a portfolio of many different types of investment tools, which matches the
priorities and risk profiles.
Reference
4.
Bank
Negara Malaysia (2012), ‘Economic and Financial Developments in Malaysia in the
Fourth Quarter of 2011’’, (Kuala Lumpur : Bank Negara Malaysia)
5.
Ministry
of Finance, Malaysia (2013), ‘Economic Report, 2012/2013’’, (Kuala Lumpur : Ministry
of Finance)
6. Ministry of
Finance, Malaysia (2009), ‘Economic Report, 2008/2009’’, (Kuala Lumpur :
Ministry of Finance)
7.
Redelet
S. and Sachs, J.D, 1998, ‘The East Asian Financial Crisis: Diagnosis, Remedies,
Prospects,’’ Brookings Paper, Vol 28, No 1, pp.1-74
I agree with you that there is no new taxes that is applied to the public because those low income citizen can't afford to pay new taxes as it will cause them more troublesome.
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