You already know how I feel about WoW in general; however, there's no denying this latest expansion is the most ambitious one yet. It completely guts the original game and quite literally changes everything. Well, almost everything. It's still WoW, but it's the best version of WoW so far. Photo by GameSpot
GEORGE TOWN: The Federal Government wants to make Penang the preferred economic hub in the region.
Prime Minister Datuk Seri Najib Razak said several development projects and strategies had been designed to stimulate the economy and provide jobs.
“Ten major infrastructure projects have been identified, including the expansion of the Penang International Airport, Penang Port, upgrading of Penang Bridge, construction of the second bridge, and the creation of a Multimedia Super Corridor in Penang.
“These initiatives will not only facilitate economic activity but also support our national objective to increase tourism revenue from RM53bil last year to RM168bil by 2020.
“I believe Penang has unique advantages for it to become a hub for the Northern Corridor Economic Region (NCER) and Growth Triangle comprising Indonesia, Malaysia and Thailand,” he said in his speech at the groundbreaking ceremony for the airport’s RM250mil expansion project.
The project, expected to be completed by June 2012, is under the NCER blueprint launched two years ago.
Najib said Penang already had the highest economic density and the shortest distance to the market for a city in the Growth Triangle, adding that the airport’s expansion would further enhance the island’s infrastructure and transport connectivity.
He said it was also heartening to see the benefits of the Government’s stimulus package firsthand because the project would increase passenger capacity, improve facilities and strengthen security.
Funding for the project came under the RM6bil economic stimulus package, which was introduced to stave off the effects of the global financial crisis.
Najib said equipping terminals with modern public facilities and delivering high-level customer service were key to portraying a favourable image of the country to travellers.
Transport Minister Datuk Seri Kong Cho Ha said between January and November, the number of passengers at the aiport had increased by more than 26% to 3.7mil.
“Compared to last year, cargo traffic has risen by 12%,” he said.
GEORGE TOWN (Dec 20, 2010): The federal government is allocating funds for Penang to help make the state a regional economic hub which would benefit the country as a whole, Prime Minister Datuk Seri Najib Abdul Razak said.
Citing the RM250 million upgrading project for the Penang International Airport as an example, Najib said the federal authorities were setting aside money from a "national perspective" and in line with plans to develop the Northern Corridor Economic Region (NCER).
Najib with Malaysia Airports managing director Tan
SriBashir Ahmad (2nd from right) and Koh looking at
the model of Bayan Lepas International Airport.
"The federal government’s goal for Penang is to make it the preferred hub in the region," he said. "Ten major infrastructure projects have been identified, including expansions of the airport, Penang Port and Penang Bridge; construction of a second bridge; and the creation of a Multimedia Super Corridor in Penang.
"These initiatives will not only facilitate economic activity, but also support our national objective to increase tourism revenue from RM53 billion in 2009 to RM168 billion by 2020," Najib said in his speech while officiating at the ground-breaking of the airport’s passenger terminal expansion here.
Also present were Transport Minister Datuk Seri Kong Cho Ha, Chief Minister Lim Guan Eng, as well as Ministers in the PM’s Department Tan Sri Dr Koh Tsu Koon and Tan Sri Nor Mohamad Yakcop.
Funding for the project came from the government’s RM6 billion economic stimulus package.
"This RM250 million investment in the airport’s expansion will increase passenger capacity, improve facilities and strengthen security," Najib said.
"It will also enhance the airport’s ambience, providing a higher comfort level to airlines and passengers alike, and offering a better selection of retail outlets," he added.
Najib noted that the stimulus package offered many benefits to the aviation sector, including two years of landing rebates for airlines to support their business recovery, restore confidence and increase the rate of air traffic into Malaysian airports.
Najib said he also anticipated the need to upgrade the airport’s cargo terminal to serve increased industrial activity here.
He noted that the airport now handles more than 30% of Malaysia’s manufacturing exports and is the second busiest entry point for international visitors to the country.
Stressing that investing in infrastructure was a key pillar to sustaining Malaysia’s economic growth in the long term, he said: "I am confident that the airport’s upgrading will allow Penang to further develop in economic growth."
IF you own a property that you rent out, you should know that besides the prospect for ongoing income and capital appreciation, such investments offer deductions which can reduce the income tax on your profits.
However, what type of property investor are you? If you have been actively looking for housing properties to purchase and selling them at a profit, you may not be a passive investor. It is likely that you could be regarded as a property dealer or trader.
The profits derived by a property trader are taxed as income from a business whereas that derived by passive investor is treated as a capital gain and will be subject to a 5% real property gains tax if the property was held for less that five years. If held longer, there will be no tax.
The law to determine whether you are a property trader is imprecise and the outcome can depend on a subjective evaluation of the relevant facts.
For example, does it mean that if you have sold a property within a two-year period, you will be a property dealer? Not necessarily, since it depends on your intention when you acquired that property and the reason why you sold it.
The sale of a second property will reduce the strength of a claim that you are not a property dealer but again, there may be reasons to enable you to argue otherwise.
Rent received in advance
The money that you receive for rent is generally considered taxable in the year you receive it, even when it is not due or earned. You should therefore include advance payments of rent as income even though they are not due.
Tenant-paid expenses
Expenses paid by your tenant are considered income to you. This would include, say, an emergency repair to an air conditioner while you are out of town. You can then deduct the repair payment as a rental expense.
Trade for services
Your tenant might offer his services in exchange for rent. You must include as income a fair market value of his services.
For example, if your tenant, an accountant, agrees to help you prepare your accounts in exchange for two months rent, you must include the two months rent as income even though you did not actually receive the money.
Security deposits
Such deposits are not taxable on you when you receive them if the intent is to refund the money to the tenant at the end of the lease. If the tenant breaches his lease terms, then you are entitled to use the deposit to make good any defects in the property and return the balance to the tenant.
You must include the amount used to repair the defect as income and at the same time claim the amount spent as a deductible expense.
Repairs and improvements
Owners of rental properties should not assume that anything done on the property is a tax-deductible expense. The tax law looks at it quite differently.
A repair keeps your rental property in good condition and is therefore deductible in the year you incur the expense.
Improvements, on the other hand, will add value to your property and the costs are not deductible. Improvements could include a new patio, a garage or a new roof.
From a tax standpoint, you should carry out repairs as the need arises rather than wait until the problem becomes such as to require extensive renovations where elements of improvements would invariably be present. If you bought a dilapidated property and immediately incurred repair expenses on it, these “initial” repairs are not deductible, being of a capital nature.
Mortgage and other expenses
Expenses incurred to obtain a mortgage are not deductible. These could be appraisal fees, commissions or legal fees.
When you start making your mortgage payments, the amounts paid relating to your rental property will only be deductible to the extent of the interest portion. This would be ascertainable from the annual statement, which your bank will send you.
You will also be able to deduct the cost of insurance on the rental property as well as assessments and quit rent.
Rental as a business
The Inland Revenue Board (IRB), in its public ruling, states that “Where in conjunction with the letting of a property, a person also provides ancillary or support services/facilities, the letting can be considered a business source of income ” The consequence is that you are entitled to claim “capital allowances” on any plant and machinery used in the business of letting.
These could include air conditioners, refrigerators as well as furniture and fittings. Should the tax-deductible expenses in any one year exceed the rental income, then the excess being a business loss can be carried forward.
Keep good records
The IRB can be reasonable (based on the law) in deciding on the items you can deduct but you need to show them that you have adequate records of the expenses. Always be prepared to back up your claims.
Kang Beng Hoe is an executive director of Taxand Malaysia Sdn Bhd, a member of the Taxand organisation of independent tax firms worldwide. The views expressed do not necessarily represent those of the firm. Readers should seek specific professional advice before acting on the views.
Strong currencies and a travel boom are fuelling a festive shopping spree in Asia's retail capitals even though consumers remain wary of a new downturn, economists and retailers say.
With US and European consumers stuck in uncertainty, global brands are pinning their hopes on Asia, where the buying binge usually stretches from Christmas to the Lunar New Year which will take place in early February.
Singapore's fashionable Orchard Road is teeming with foreign shoppers, many of them from Southeast Asian countries whose currencies have appreciated sharply against the US dollar this year.
Don Triangga, a 26-year-old Indonesian tourist, said he spent 1,500 Singapore US dollars (1,150 US) on a Louis Vuitton belt and a Burberry shirt, and he wasn't done yet.
"The Burberry polo shirt is a gift, but the belt I use," he told AFP while sitting next to a gigantic Christmas tree in front of the swank Ion Orchard shopping mall.
Singapore is expecting 15 percent gross domestic product (GDP) growth this year following a recession in 2009, making it Asia's fastest-growing economy in 2010, but the retail industry is still lagging behind other sectors.
Lau Chuen Wei, executive director of the Singapore Retailers Association, said consumers could be saving their bonuses as a precaution or taking advantage of the strong local dollar to shop in Europe or the United States.
This has resulted in "a leakage in shopping US dollars" to other countries.
The Asian Development Bank said that the Thai baht, Malaysian ringgit, Singapore dollar, Philippine peso and Indonesian rupiah have respectively seen the sharpest appreciation against the US dollar in 2010.
These countries' stock markets have also enjoyed the most robust expansion, with Indonesia's exchange posting the most dramatic rise, thanks to investor confidence and an infusion of foreign money seeking better returns.
The ADB estimated average GDP growth in emerging East Asian economies at 8.8 percent this year, from 5.2 percent in 2009, and 7.3 percent in 2011.
The Manila-based lender cautioned that "growth momentum may ease on weak domestic US demand, uncertainty over the sovereign debt crisis in Europe and the deflationary pressures in Japan."
Fears of a bubble bursting in East Asia are also lurking in the background but that doesn't stop shoppers like Lee Hae-Kyung, a 33-year-old hospital administrator in South Korea, from spending more money this year.
Lee said her budget for Christmas gifts was 50,000 won (44 US) for each friend, five times her budget in 2009.
"It's not like I'm making more money than before, but I just feel like spending more since people around me and the whole atmosphere seem to be far more optimistic," she said in Seoul.
In Hong Kong, despite the local dollar's linkage to the US dollar, the territory's retail industry is booming, thanks to mainland Chinese visitors and the red-hot stock market and property sector.
Sales soared 18.3 percent by the end of October over the same period in 2009, according to government figures.
"The level of income growth remains very strong in China so (Chinese tourists) are likely to keep spending more," Aaron Fischer, an analyst at brokerage CLSA, told AFP.
Thai retailers can look forward to some festive cheer thanks to an improved political situation and easing concerns about the strong baht, said Jit Siratranont, deputy secretary general of the Thai Chamber of Commerce.
"That makes people have more confidence to spend more during the New Year shopping season," he said.
There's a different picture in Australia.
Australian retailers said almost one-third of customers were planning to cut back on spending this Christmas following a series of interest rate hikes to 4.75 percent, which had blown out mortgages and debt repayments.
The strong Australian dollar, which marched past parity with the greenback in October, is also hitting local business, with consumers increasingly shopping online for offshore bargains.
"Consumers are already showing signs they are watching their pennies this festive season with almost 33 percent saying they are planning on spending less this year than last Christmas," said Australia Retailers' Association director Russell Zimmerman.
In Tokyo, where shopping peaks closer to Christmas, the Japan Department Stores Association said it had not yet heard from members on buying trends.
"Gift demand will emerge later in the month just before Christmas as we usually see demand for ornaments first, which is followed by advance orders for cakes and then gifts," said a spokesman for department store chain Isetan Mitsukoshi Holdings.
"What we can say at this stage is that orders for cakes are robust. At the (flagship) Nihombashi Mitsukoshui store, the orders have so far posted a double digit growth from last year," he said.
But rather than going to parties, many people seem to be planning to spend Christmas at home, he added.
The closely-watched Tankan quarterly survey of business sentiment in Japan, whose export earnings have been dented by the strong yen, has fallen for the first time in nearly two years, the Bank of Japan said Wednesday.
More companies are making profits this year and rewarding their employees with bonuses and salary adjustments. Sunday Star speaks to financial experts who say that apart from pampering oneself, it’s important to save for a rainy day.
IT’S bonus time! After a “barren” 2009, N. Sheila is looking forward to the one month bonus that has been bandied about through her company’s grapevines.
In the past, the 28-year-old engineer would splurge on a new wardrobe but this year, she intends to settle her credit card debts first.
“The money will come in handy,” she says, adding that recent hard times have taught her the value of money. If there’s extra cash to spare, she intends to spend it on a short holiday in Bali next year instead of a more expensive destination.
According to the Malaysian Employers Federation (MEF), an estimated 4.68 million private sector employees are due for bonuses over the next few weeks, while 4.4 million workers will benefit from salary increments.
Based on MEF’s latest survey, companies will pay up to an average of two-month bonuses.
“Generally speaking, things are looking much brighter,” MEF executive director Shamsuddin Bardan says.
Firms are doing much better this time around, he notes, referring to the economy that was previously affected by the global financial crisis.
Shamsuddin says their survey shows that the capacity for companies to pay out yearly bonuses has increased from 50% in 2009 to 80% this year.
Credit Counselling and Debt Management Agency (AKPK) CEO Akwal Sultan points out that bonuses given by companies are either contractual or performance-based, adding that the bulk will be based on the latter.
Akwal advises those who get contractual bonuses to plan their spending early on.
Rajen Devadason, a Securities Commission-licensed financial planner with MAAKL Mutual Bhd, believes that not all bonuses will be paid out this year-end, but at various points throughout 2011.
Regardless of when these bonuses are paid out, Devadason says it is imperative that working adults base their household budgets and cash flow projections on confirmed monthly income.
He believes the average Malaysian may end up squandering his or her bonus money.
“Three months after receiving the bonus, they will find it difficult to tell how exactly their lives improved.
“On the other hand, there are those who will wisely use the extra money to strike a balance between enjoying some short-term benefits and securing greater long-term financial strength through judicious saving and investing,” he adds.
Devadason says it would be unwise for people to use their year-end bonus to make up for cash shortfalls during the year.
Money that flows into their bank accounts in the form of contractual and especially ex-gratia bonuses should be treated with extra care and respect, as it will allow for significant long-term financial improvement.
1. Settle high-interest debts
Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui’s advice is for all credit card debts to be settled first because of the high interest rates for payments that range from 13% to 18%.
“It is not easy to get the same rates on any investment,” he adds.
Akwal concurs, saying that unpaid credit cards cause debts of individuals, especially youngsters, to pile up. He says people will start paying the minimum amount, leading to higher compounding effects.
Once credit card payments are paid off, we should look at settling personal and housing loans so that principal and daily interest are lowered, he adds.
2. Money in reserve
The general rule of thumb is to always have at least six months of living expenses in reserves, says Yap. For instance, if your cost of living is RM3,000 monthly, you should have at least a RM18,000 buffer.
“If there is an emergency, you will still have cash and won’t have to sell anything off,” Yap explains.
Akwal says that these savings could be in the form of saving accounts, unit trusts or even a gold investment account.
“The important thing is that you can withdraw quickly in an emergency.”
MIDF Research’s chief economist Anthony Dass, meanwhile, suggests a portion or 30% of the extra cash inflow be saved. One can also invest in inflation hedging instruments, given the expectation of higher inflation in 2011.
3. Treat yourself
Akwal believes everyone deserves a treat and depending on how much you get, this could be in the form of a holiday or a meal.
“This will be the last sum you get in the year and some part of it should be used to pamper yourself,” he says.
“If you can’t afford that overseas holiday, then bring your family to our local destinations. They are just as beautiful, and it will support our tourism industry.”
4. Give to charity
If you think times are hard, then spare a thought for charitable organisations that usually work on tight budgets. In uncertain times, individuals and companies generally cut down donations, making it more difficult for charities to operate.
In Malaysia, there are many charities and NGOs that require assistance in cash and kind.
“It is good for the soul to be generous towards those less fortunate. Well-chosen charities should be selected to receive anything between 1-10%, of the net bonus,” Devadason suggests.
5. Repairs
That car of yours badly needs a touch-up? Or your house pipes are leaking? This would be the best time to do those repairs says Akwal.
6. Understand your investment
Those without investing experience or time should consult a professional financial adviser licensed by the Securities Commission or Bank Negara.
Whether you plan on investing in the property market, stock market, unit trusts, gold futures, you should always know how it works, says Yap.
“The most important thing is that you know how the investment operates and the risks involved.”
Yap points out that there are some risky get-rich-quick schemes that promise high returns where the methods of how the income is generated is not explained.
“Be cautious, especially if the returns are high,” he says, adding that many people have been stuck in quandaries despite the constant reminders on such schemes.
Akwal’s advice is to invest in something familiar and not because someone tells you to invest in it.
“Many people have lost money this way,” he cautions.
7. Investment
The golden rule of investing is to never put all eggs in one basket, says Akwal.
“People should diversify their investments – whether it’s in the stock market, investing in property or unit trusts.”
“For instance, if investing in the stock market, spread out the investments into different portfolios such as agriculture, plantation and the construction sectors.” Anthony also suggests investments in the form of forced savings like EPF, insurance, unit trust, equities or even properties to take advantage of assets inflation.
Devadason says it would make sense to flow a portion of your bonus into short-term bank fixed deposits of say one-month on auto-renewal, to catch any potential overnight policy rate (OPR) hikes by Bank Negara in the coming year.
Another portion, he adds, can be used as ad-hoc injection into existing equity unit trust funds (of good pedigree), which might currently show losses to significantly lower the average cost of your units and increase the chances of making larger percentage gains in the future when greater equity recovery kicks in.
More sophisticated investors can broaden the asset class exposure of their personal retirement portfolios by adding international equity funds to diversify away from excessive Malaysia-centric equity exposure.
One can also include carefully chosen money market and bond funds to add stability to those vital long-term portfolios.
“Those willing to do additional homework might consider increasing both agricultural and precious metals exposure in their portfolios,” he says.
