CHINA LAUNCING A WORLD BANK RIVAL

Australia, Indonesia and South Korea skirted the dispatch of a China-supported Asian foundation count on Friday as the United States said it had concerns in regards to the new adversary to Western-commanded multilateral loan specialists.

China’s $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a test to the World Bank and Asian Development Bank, both of which tally Washington and its associates as their greatest money related supporters.

China, which is quick to augment its impact and delicate power in the area, has restricted voting rights in these current banks regardless of being the world’s second-biggest economy.

The AIIB, dispatched in Beijing at a service went to by Chinese account clergyman Lou Jiwei and delegates from 21 nations including India, Thailand and Malaysia, plans to give venture advances to creating countries. China is situated to be its biggest shareholder with a stake of up to 50 percent.

Indonesia was not present and not one or the other were South Korea and Australia, as per a pool report.

Japan, China’s primary opponent in Asia and which overwhelms the $175 billion Asian Development Bank alongside the United States, was additionally not show, yet it was not anticipated that will be.

Media reports said U.s. Secretary of State John Kerry put weight on Australia to stay out of the AIIB.

Authors Bio:

Morgan lee, 32, is a leading financial advisor and writer in Kuala Lumpur. She likes to write and express her views especially on Islamic Finance and the role of Asian countries in its development. Credit card annual fee, credit cards in Malaysia, uob credit card dining promotion and many other topics are hot topics in Malaysia and her areas of concern too.

Will GST Affect Tourism in Malaysia?

With the annoumcement of new tax, GST, many are concerned about the impact this will have over economy, lifestyle, property and tourism. Speaking of tourism strictly, Malaysia has been doing quite well in past few years. So any direct or trickledown effect on tourism is likely to impact GDP.

In this article we will see how tourism will get affected with the implementation of this new tax. The new tax, GST, will be implemented on both rich and poor of Malaysia and as expected it will raise RM27 billion for the government. The main aim of introducing this new tax system is mainly to get hold on the current system’s leakages and tax erosion. By this new tax government hopes to increase tax base and revenue subsequently.

GST, is said to have an impact on the tourism competitiveness of Malaysia. If the commodity and living becomes expensive in Malaysia then tourists will prefer other Indo-China destinations such as Indonesia, Thailand and other countries. Also the GST may deter tourists from spending more on shopping in Malaysia due it rising prices.

GST is major concern for the companies who have arranged for the tourist campaigns and have already paid for them. They will have to absorb 7% on each ticket they have planned and this will be a lot of money.

These tourist companies are suggesting furthering delay the implementation of the new tax system as this would prevent them from paying extra on every ticket.

Apply credit card online and get the best credit card in Malaysia now to avail all the attractive benefits!

Do You Want to Recycle Your Credit Card Points?

What do you mean by recycling credit card points? Before you go ahead and learn the ways this can be done, you should have an idea about the concept. Recycling credit card is making use of credit cards to move your cash from cards to more liquid instruments and back to credit cards. There are no fees charged for this transaction and doing so allows you to accumulate points.

By now you have grasped the concept of recycling credit cards. You must now be eager to know the ways you can make maximum credit points. Below are few processes, hope these will help you!

  1. Setting your cash advance credit card limit to ZERO. This is a very smart move. Doing so will protect you from any sudden changes in bank policies. This step is just a precaution that can save you from expensive surprises such as a sudden change in the bank policies. Upon asked by bank, reason for doing so, you can tell them that you did it from security perspective.
  1. Purchase Gift cards, those that can be later used as Debit cards.
  1. Use that gift card to pay for your postal money order, this money is then deposited back into your bank account to pay off your credit card balance and finalize the points. You have to bear a minimal price that is attached to the transaction, there is some cost attached per 1000 points.

Above steps constitute to one process that can help you get some points. Alternatively, you can also see for best Business Credit Card Malaysia or other credit cards that can help you earn more points!

For more details, refer to: http://www.imoney.my/credit-card

For more tricks wait for more of my blogs!

How GST will impact Home Prices and Property Market?

GST's impact on property in MalaysiaWith the implementation of GST tax on all goods and services from April 2015, people of Malaysia are now concerned about the trickledown effect this rise will have on their living and livelihood. Given the rise in commodities and services it is inevitable that this will not affect the home and property prices in Malaysia.

There are many articles written on this topic but in this article we will explain to a common man in the simplest way that what impact will GST have on property and house prices.

To understand the impact of GST on property, one needs to have knowledge about what is GST and how does it works. It is only then when you one can understand the impact. Apart from GST one must also be aware of Sales Tax. Sales Tax is the one that is impacting the existing home and property prices.

Firstly, there are different groups or baskets that are created within the GST system. The first basket is that of “Standard Rated” and the other is of “Exempted Rated”. The goods that come in the former basket have a tax attach to them while the ones that come in the latter basket are exempted from the tax.

You need to know which item falls under which category to have an idea about the tax you are supposed to pay. Then you must also know the difference between the two major tax systems; that is GST and Sales tax.

Both the systems (GST and Sales Tax) DO NOT charge any tax on home or residential property but they do charge a tax on the purchase or sale of commercial property since it falls in Standard Rated basket of GST.

Secondly, there is a tax charged under both systems on the purchase of input material that is required for construction. Both systems charge a different amount tax for input material. The main factor for rising cost is that under existing tax system Malaysians are paying tax on Second Schedules Goods only and that too 5%. They are not to pay on basic material such as tiles and bricks. But in the new system all material will be liable to a 6% tax which is going to raise the cost of production and the price of property in future.

This is good news for those who are going to buy property since they are not the final party affected by GST, it’s the developer, but one must bear in mind that developers will try adding extra cost to home prices to overcome the additional tax they have to pay.

Conclusion:

To sum up in simple words we can say that:

  • Commercial property prices will rise more as compare to home or residential property.
  • Developer, and not the final customer bears the extra tax cost. However, developers will try extracting that cost in form of high property prices.
  • The secondary home market should see a knock on effect in prices

 

Equipped with all this knowledge, now you can make better decision on property loan and other decisions that are related to the purchase of your home!

Resources:

This post first appeared @ http://ireport.cnn.com/docs/DOC-1168401

 

Malaysia Remains TOP Islamic Finance Player!

Ever since the inception of Islamic financing, many investors have tried getting a hands on it but Bahrain’s economic Development Board economist, Dr Jarmo Kotilaine reveals that Malaysia and Gulf still have the major portion. Dr Jarmo said that Islamic Financing requires many component parts for its growth and a developed infrastructure, both of which are present in Malaysia.

He added that other centres can add more to what Southeast Asia and Gulf has started but they are unlikely to challenge any establishment by these countries. He told Bernama that most of the demand for the Islamic finance products comes from these developed economies as they have the significant infrastructure need.

There was a significant increase in total sukuk issuance that exceeded $100 billion a year for three consecutive years in a row. The leading players of this growth were; Malaysia with a share of 69% followed by Suadi Arabi 14% and UAE 8%.

Kotilaine said that the main reason for this increase in Islamic financing can be Islamic bonds that have lower the cost and at the same time raised the liquidity for the companies. Islamic bonds provide these companies with diversity to their funding solutions.

Malaysia has been doing quite well in the financial products especially when we talk about personal loans such as Bank Rakyat personal financing. Consumerism is rising in Malaysia and as predicted this will further fuel the economic growth for the upcoming fiscal year.

 

Asean Region Seen as a huge potential by Maybank!

Abdul Farsi Alias, the Maybank Group president and the CEO of the Maybank group said that he sees a lot of potential that can be tapped in the form of emerging business opportunities in the Asean region as part of their growth strategy.

He went on saying that there are still areas within the consumer market that are not yet fully discovered such as Regional private banking, Asset Management, Islamic banking and as well as Trade Financing.

Mr Abdul cited that not only is the Asean region open to opportunities in the consumer and investment banking but also in other deeper areas where the banking sector has more potential to grow.

Mr Abdul told reporters on Sunday at the sidelines of the Invest Malaysia London that other area where he sees opportunities is the insurance sector. He said that insurance is an emerging sector since Aseans are experiencing higher income and this means that they will have more money to spend.

He further added that Asia is a huge market that has a GDP of over $2.41 trillion. This means by far Maybank has only scratched the surface in terms of what they can actually do. This was CEO’s remarks when he was asked about any expansions in Europe. This made it pretty clear that the bank is looking forward to expand where it exits and like currently have no plan of expanding in other continents.

He said that new projects and new products have been launched in past few years that have made the expansions possible in other Asian regions. According to CEO MayBank there are still many opportunities in Asia and bank will be exploring them instead of tapping new markets across the globe.

More income means more spending and more loans such as bank rakyat personal loans and others. This boost on spending will create more room for banks and there will be more customers to cater to.

Find out which 7 Companies keep their Money Offshore!!

There are 7 countries that are based in US but just to evade taxes they are hooking up with foreign countries. This article reveals some really interesting facts about them, which will change your opinion on many things. Not 7 of them have chosen the same path that is not all companies believe in moving headquarters and running from high taxes, some have different yet effective approach.

Some smart enough not to bring the profits to country, for once they show profit they have to give a big chunk to Uncle Sam. So what these companies do is that they reinvest their money outside country so they don’t have to pay tax on that.

Smart moves by smart companies lead them to billions of dollars savings. For instance Microsoft is said to save $30 billion by reinvesting around $92 billion outside country and not bringing the money to home.

But why are these big companies not bringing their profits home and are instead reinvesting aboard? Well the answer is America’s corporate income tax which highest among the developed economies. The tax of 35% is forcing these companies to prevent their money from being used in their home country.

The list of the 7 companies playing smartly is as follows:

  • Apple (AAPL, Tech30): $111.3 billion
  • General Electric (GE): $110 billion
  • Microsoft (MSFT, Tech30): $92.9 billion
  • Pfizer (PFE): $69 billion
  • Merck (MKGAF): $57.1 billion
  • IBM (IBM, Tech30): $52.3 billion
  • Johnson & Johnson (JNJ): $50.9 billion

 

To know more about increase usage of credit cards, rise in bank islam personal loan , fall in car loans and much more financial news, keep following my blog!

Find out which 7 Companies keep their Money Offshore!!

There are 7 countries that are based in US but just to evade taxes they are hooking up with foreign countries. This article reveals some really interesting facts about them, which will change your opinion on many things. Not 7 of them have chosen the same path that is not all companies believe in moving headquarters and running from high taxes, some have different yet effective approach.

Some smart enough not to bring the profits to country, for once they show profit they have to give a big chunk to Uncle Sam. So what these companies do is that they reinvest their money outside country so they don’t have to pay tax on that.

Smart moves by smart companies lead them to billions of dollars savings. For instance Microsoft is said to save $30 billion by reinvesting around $92 billion outside country and not bringing the money to home.

But why are these big companies not bringing their profits home and are instead reinvesting aboard? Well the answer is America’s corporate income tax which highest among the developed economies. The tax of 35% is forcing these companies to prevent their money from being used in their home country.

The list of the 7 companies playing smartly is as follows:

  • Apple (AAPL, Tech30): $111.3 billion
  • General Electric (GE): $110 billion
  • Microsoft (MSFT, Tech30): $92.9 billion
  • Pfizer (PFE): $69 billion
  • Merck (MKGAF): $57.1 billion
  • IBM (IBM, Tech30): $52.3 billion
  • Johnson & Johnson (JNJ): $50.9 billion

 

To know more about increase usage of credit cards, rise in bank islam personal loan , fall in car loans and much more financial news, keep following my blog!