The current movement control order (MCO 3.0) will not end as scheduled tomorrow (June 28).
This was announced by Prime Minister Tan Sri Muhyiddin Yassin who said the current lockdown, part of Phase 1 of the National Recovery Plan will continue until the threshold value is less than 4,000 Covid-19 cases a day.
He also said the government will announce more comprehensive assistance to all groups of society on Monday or Tuesday.
Source: NST Online
The first phase of the Swettenham Pier Cruise Terminal (SPCT) expansion project has been completed with the berthing area now bigger by about 30%.
Penang Port Commission (PPC) chairman Datuk Tan Teik Cheng said besides the solid deck wharf extended 220m towards north of the terminal, the breasting and mooring dolphin had increased by 50m and 68m.
“Phase 1A was completed on May 31 and is expected to obtain the certificate of completion and compliance (CCC) by the end of July.
“Two new link bridges will be constructed to connect the breasting and mooring dolphin.
“As a result of this extension, it will allow for the berthing of two Oasis class vessels at the same time.
“This will increase the wharf capacity to handle 12,000 passengers from the existing 8,000,” he said.
The RM155mil project is a federal initiative funded by Penang Port Sdn Bhd.
Three other phases involving preliminary upland and terminal improvement are set to be completed within the next five years.
“Phase 1B of the development in connection with the berth expansion is the narrowing of concourse and installation of gangways or boarding bridges to improve the berthing of vessels. This phase is expected to start in 2023 and be completed within a year.
“Phase 2 and 3 for terminal improvement will commence after the completion of Phase 1A and 1B.
“The proposed terminal improvement will involve the restructuring of the existing terminal to allow simultaneous flow and movement plus embarkation and disembarkation of passengers for the home porting cruise, port of call cruise and regional ferries.
“It was also proposed that the existing north side driveway be converted to two-way vehicular access linking to the apron and new annex.
“Construction is expected to start by 2024 and will take a year to complete,” he said.
Other aspects of the expansion including the refurbishment of the warehouses inside the PPC area will continue as preliminary work has already begun.
Cautious approaches on the development of the warehouses are taken due to their heritage value.
George Town World Heritage Incorporated will also be involved in the development comprising retail, culture and duty-free elements while maintaining its original heritage value.
The warehouses are set to be ready in 2022 with the development estimated to be around RM300mil.
PPSB, which was set up in 1994 under Finance Ministry Incorporated, has been operating SPCT via a management contract while PPC comes under the Transport Ministry, which is the licensing authority of the port.
Source: TheStar.com.my
Whether you’re a property investor, an owner simply looking to sell your current home to purchase your dream home or a corporate group engaging in a corporate restructuring exercise, it is important to be aware of all costs associated with a real estate transaction including the real property gains tax (RPGT) in Malaysia.
RPGT is a form of capital gains tax levied on profits arising from the disposal of real property or real property company (RPC) shares. Real property is defined to mean any land situated in Malaysia and any interest, option and other right in or over such land.
The effect of the definition of real property is that RPGT can be levied on interests or ownerships which amount to less than a full title to the land.
The RPGT Act, 1976 has been amended a number of times over the years to cater to the economic needs of the country. Currently, companies as well as individuals that are citizens or permanent residents of Malaysia will be subject to RPGT at the following rates:
Based on the Short-Term Economic Recovery Plan or Penjana package announced last year, Malaysian citizens are exempted from RPGT on gains from the disposal of up to three residential properties from June 1, 2020 to Dec 31, 2021.
RPGT exemption is also available for disposals of properties by Malaysian citizens in the sixth or subsequent year after the acquisition date where the consideration does not exceed RM200, 000.
The other main exemptions from RPGT that are available for individuals are as follows:
Transfers of real properties between companies in the same group to bring about greater efficiency, or for purposes of reorganisation, reconstruction or amalgamation could be exempted from RPGT if certain conditions are fulfilled and the prior approval of the Director General of Inland Revenue is obtained.
For disposals of real property that take place from Oct 12, 2019, the market value of the property on Jan 1, 2013 will be deemed to be the purchase price for properties that were acquired prior to 2013.
This would give rise to a higher cost base and lower profits, thus reducing the property seller’s tax burden.
Incidental costs incurred in disposing properties can be deducted in calculating the taxable gains.
These would include fees for legal services, surveyors, sales commission etc. A common problem faced by many taxpayers is that RPGT returns are filed without taking into account incidental costs, resulting in higher RPGT payable.
Generally, Malaysia does not charge any capital gains tax (neither does Malaysia have a capital gains tax regime) on the sale of shares, the exception being profits arising from the sale of RPC shares.
An RPC company is a controlled company which holds real property or shares in another RPC where the market value of the real property or RPC shares is not less than 75% of the value of the company’s total tangible assets.
It follows then that shares in public listed companies are not regarded as RPC shares as these are not controlled companies.
The incorporation of the RPC legislation into the RPGT Act, 1976 with effect from Oct 21, 1988 was to cover a loophole that existed previously, whereby taxpayers could avoid RPGT by disposing shares in the company instead of selling the real property owned by the company.
However, under the RPC concept, the shares are deemed to be chargeable assets that are subject to RPGT.
Some interesting trivia – in a Malaysian High Court ruling, it was held that shares in a property development company would not be regarded as RPC shares since the development land held by the property developer is subject to income tax and not RPGT.
The High Court’s decision was premised on the rationale for the introduction of the RPC concept, which was to avoid the “mischief” conducted by taxpayers to avoid RPGT.
The Court of Appeal overruled the High Court’s decision, ruling that a property development company will be regarded as a RPC based on the literal interpretation of what constitutes real property under the RPGT Act, 1976, as real property includes land situated in Malaysia, notwithstanding that the development land itself is subject to income tax and not RPGT.
In a merger and acquisition exercise which involves the transfer of shares, it is important to evaluate whether the shares being transferred are RPC shares and subject to RPGT.
There is a myriad of issues to be aware of in dealing with RPGT, an interesting area of taxation law in itself.
Harvindar Singh is managing partner of Harvey & Associates. The views expressed here are his own.
Source: TheStar.com.my
Penang has made the installation of fibre optic cable mandatory for all new housing schemes and buildings in a move to accelerate the development of its telecommunications infrastructure.
State Transport and Infrastructure Committee chairman Zairil Khir Johari said Penang has enforced fibre optic installation as a basic utility on par with water and electricity supply.
“Penang is the first state in Malaysia to do so. We are now in the process of replacing outdated copper cables and are expecting to complete this process by the end of next year.
“Fibre is to pave the way for faster internet. So, fibre is our focus. We want to fiberised as soon as possible,” Zairil told Buletin Mutiara in an interview recently.
Zairil said it is compulsory for developers of new housing development or buildings to instal fibre optic when seeking planning permission from the local council just like the need to provide water and electricity supply, without which the developers could not obtain the Certificate of Completion and Compliance (CCC) for their finished project.
He said the fibre optic installation, however, is not compulsory if you build a single house.
For old housing schemes, Zairil said the state has allowed telecommunication companies to lay fibre optic cables in existing ‘longkang’ (drains) to minimise cost.
The fiberasation process is part of the Penang Connectivity Master Plan (PCMP) which the state government has introduced in 2019 to develop its telecommunications infrastructure as well as to realise its aim of a gigabit city.
According to Zairil, the decision by the Penang government to make fibre optic installation mandatory has received recognition and praise from the Malaysian Communications and Multimedia Commission (MCMC) Minister Datuk Saifuddin Abdullah through a media statement late last year.
“This Covid-19 situation has shown us how important it is to have a stable and fast internet as people have to work from home and students have to embark on online learning during the lockdown. Now, we begin to appreciate and value the importance of a good telecommunications infrastructure,” said Zairil.
He said the PCMP is in line with the Penang2030 vision of ‘A Family-Focused Green and Smart State that Inspires the Nation’ that Chief Minister Chow Kon Yeow had launched in August 2018.
He added that on May 11, 2019, Chow had met the chiefs of seven major telcos and the MCMC in their first meeting to discuss the state’s desire to enhance its telecommunications infrastructure.
A special task force was formed with Chow as the chairman to coordinate, plan and implement all matters related to telecommunications in the state with the tagline, ‘Facilitated by the State, Guided by MCMC and Delivered by Telcos’.
“To date, the implementation of the PCMP is 48 percent complete, while another 20 percent are in progress and the remaining 32 percent will be implemented according to the set time period.
“As of the first quarter of 2021, Penang has achieved 99.68 percent of 4G LTE (Long Term Evolution) network in populated areas compared to the national rate of 93.77 percent.
“The target is to have only 4G by the end of next year, and get ready for 5G. 5G requires fibre; no fibre, no 5G. So, whatever it is, what we prepare for 5G today will help us to be 5G ready,” Zairil explained.
Source: Buletin Mutiara
EcoWorld announced its financial results for 2Q 2021 yesterday. EcoWorld hits 88% sales target for FY2021 in 7months. Declares 2sen interim dividend. Strong 2Q2021 results with steady sales momentum across all projects.
Amidst a challenging backdrop, EcoWorld is encouraged by the strong results achieved with continued steady sales momentum contributed by Klang Valley, Iskandar Malaysia and Penang projects.
EcoWorld will continue broadening their digitalisation efforts to enhance Team EcoWorld’s agility and competitiveness to emerge stronger post-pandemic. They are also positive of a robust recovery in consumer and business confidence when the current lockdown is lifted and travelling restrictions eased. Visit www.ecoworld.my/investor-relations to know more.
