How To Deduct Entertainment Tax From Income Tax

To determine deductibility of expenses incurred can be very tedious and bewildering

FOR income tax purposes, any expenses incurred in the course of a business will only be eligible for tax deduction if the expenses are solely incurred in producing the business income.

It is important to establish the deductibility of an expense as in the event of a field audit which results in the Inland Revenue Board (IRB) discovering an understatement of tax due to claims on expenses which are not tax deductible, a taxpayer will not only suffer additional tax but also a 45% penalty.

With effect from year of assessment 2004, entertainment expense will only be eligible for 50% tax deduction except for specific circumstances where it will qualify for full deduction.

This article will explain the three steps to determine the amount of entertainment expenses allowable as a deduction.

Are the expenses incurred entertainment expenses as defined in the income tax law?:

Entertainment is defined to include:

(i) the provision of food, drinks, recreation or hospitality of any kind; or

(ii) the provision of accommodation or travel in connection with or for the purpose of facilitating entertainment of the kind mentioned in (i) by a person or an employee of his in connection with a trade or business carried on by that person.

Are the entertainment expenses solely incurred in producing the business income?:

Expenses allowable for accounting purpose do not necessarily qualify for tax deduction. The entertainment expenses must be wholly and exclusively incurred in producing the business income to be eligible for tax deduction. Domestic and private expenditure charged to the business accounts will not be tax deductible. For example, entertainment expenses incurred by a sole proprietor in taking his family out for a meal will not be deductible as it is private in nature.

Are the entertainment expenses eligible for full tax deduction?

Expenses incurred on the following entertainment will qualify for full tax deduction:

1. the provision of entertainment to employees. Examples of such expenses include free meals and refreshments, annual dinners, outings and family day.

2. the provision of entertainment by a person who carries on a business of entertaining. Where a taxpayer is in the business of providing entertainment to paying customers, the cost of providing such entertainment will be deductible.

Examples of expenses which are tax deductible include provision of cultural shows by restaurants or hotels at their premises to entertain their customers and meals provided by airlines or other transportation business to its passengers.

3. the provision of promotional gifts at trade fairs or trade or industrial exhibitions held outside Malaysia for the promotion of exports from Malaysia.

Expenses incurred on gifts to customers or visitors who attend the above events will qualify for tax deduction. These would include samples of products, small souvenirs, bags, and travel tickets

4. the provision of promotional samples of products of the business of that person. It should be noted that only the products of the taxpayer given out as promotional samples will be allowed full deduction.

Examples of such expenses include:

● A complimentary drink or meal provided by a restaurant.

● Free samples of products manufactured/distributed by the business.

● Free samples of new products.

5. the provision of entertainment for cultural or sporting events open to members of the public, wholly to promote the business of that person.

Examples of cultural or sporting events and the entertainment expense related to such events are shown in Table A.

Taxpayers can do some tax planning in maximising their entertainment expenses claim by using the above provision. For instance, entertainment expenses incurred by a property developer in organising a carnival for the purpose of launching a new project or new property release will normally qualify for a 50% tax deduction. By including a cultural or sporting event, the property developer will be able to claim full tax deduction.

6. the provision of promotional gifts within Malaysia consisting of articles incorporating a conspicuous advertisement or logo of the business. The gifts need not be products of the business. However, the gifts must have a conspicuous advertisement or logo of the business.

7. the provision of entertainment which is related wholly to sales arising from the business of that person. Examples of such expenses include:

● Food and drinks for the launching of a new product.

● Redemption vouchers given for purchases made.

● Discount vouchers, shopping vouchers, concert or movies tickets, meal or gift vouchers and cash vouchers.

● Free gifts for purchases above a certain amount.

● Redemption of gifts based on a scheme of accumulated points.

● “free” maintenance/service charges or contribution to sinking fund by property developers.

● Lucky draw prizes to customers.

● Expenditure on trips given as an incentive to dealers for achieving the sales target.

● Provision of light refreshments to customers when making sales.

Entertainment expenses which are not eligible for 100% tax deduction under Step 3 above will only qualify for 50% tax deduction.

The tax treatment of some of the entertainment expenses are shown in Table B.

The process of determining the deductibility of entertainment expenses can be very tedious and often bewildering.

To ensure that the expenses are appropriately categorised, it is in the interest of taxpayers to educate their staff to provide details such as who they entertained and the purpose of the entertainment. Proper records such as invoices, receipts, payment vouchers, etc must be kept to support the claim in case of tax audit by the IRB.

By Lee Voon Siong

Nationwide Rollout of CTCS on July 1

KUALA LUMPUR: With effect from July 1, Bank Negara Malaysia (BNM) is implementing the nationwide rollout of the Cheque Truncation and Cheque Conversion System (CTCS).
In a statement yesterday, BNM said the cheque clearing system in Malaysia would be driven by the transmission of cheque images and data between banks and the clearing house as compared with the current physical exchange of cheques.


The CTCS system is now managed and operated by the Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear), which is a wholly-owned subsidiary of the central bank. MyClear started operations on Jan 2, 2009. 

BNM said CTCS modernised the cheque processing infrastructure in Malaysia through the electronification of the cheque clearing process and reduction of risks and costs associated with paper-based payment instruments. 

"Cheques continue to be an important mode of payment, accounting for about 91.6% of non-cash payment value. 

"The implementation of CTCS would enhance the efficiency of cheque clearing and contributes toward lowering the cost of doing business, thereby enhancing the competitiveness of businesses as well as the overall economy," it said.

BNM said outstation cheques and local cheques in the country as a whole would be cleared on the same day and funds would be credited to the depositor’s account no more than two days later. 

However, in the states of Kelantan and Terengganu, which have different weekend bank holidays, cheques deposited on Sunday will require an additional working day for funds to be made available into the depositors’ accounts. Consumers and businesses will also no longer need to pay commission fees for outstation cheques.

BNM said with the rollout of CTCS, members of the public were reminded that effective Sept 1, 2009, only the newly designed cheques conforming to the eSPICK Cheque Design Standards and Specifications would be accepted by the banks for clearing.

A Chain-Reaction Of Illegality

Statement by Tengku Razaleigh Hamzah
Wednesday March 4, 2009

A chain-reaction of illegality

The BN’s takeover of Perak has set off a chain-reaction of illegality which has left Perak quite possibly without a legitimate government. One of our most prosperous states has been reduced to a failed state.

One lie leads to many lies. Each bad action leads to a cascade of follies. Particularly when the lie or violation concerns something very basic. This is a principle we teach our children. It is a simple but universal truth now being demonstrated in Perak.

With each violation the sense of decency and restraint and the habits that bind us to the Constitution are loosened. The confidence in the rule of law that makes civilized life possible is diminished.

Laws are invisible things. They are exist only when they are understood and observed. When the government of the day ignores foundational principles such as the separation of powers, the Constitution becomes a dead piece of paper. But the Constitution is not just any law. It is the set of laws that founds our nation, defines its basic principles, guarantees our individual rights and prescribes the structures, duties, and powers which make a national community possible. It is the foundation and source of the legal authority underlying the existence of Malaysia.

Those who so blithely ignore the Constitution for political ends are quite literally wrecking the foundations of this country to further their own interests.

This must stop.

教育非零和游戏

【党团文告／马华公会公会（蔡细历）】雪兰莪州务大臣卡立依布拉欣建议开放玛拉工艺大学的学额给非土著的建议，引起马来人社群强烈抗议，这令日前因为反对律师工会举办回教徒论坛所挑起的种族紧张气氛升温。事实上，卡立所说的正是非土著所爱听的话。

然而，我担心有心人将企图把上述课题扭曲成国内各种族间的一场零和游戏，即一个种族得益，等于其他族群蒙亏。这将演变成一个分歧性的课题，对国家不是一种健康现象。如果我们不谨慎处理，国家将因为意见的分歧而四分五裂，失焦于为共同目标而团结一致。

我尊重那些学生及各组织的反对权力，那是群众的愤怒声音，他们通过声明文告及大字报提出抗议，来自国内各种族、宗教背景的有正确思维人士，已经对这样的局势表示关注。尽管我们坚持教育不该被政治化，但在我国，教育课题已经成为政治议题。

在玛拉大学的风波上，马华公会及其资深领袖当前必须阐明他们在这个课题的立场。

马华公会应该指出，全体马来西亚人民的共同目标，是要政府确保能向所有人民提供最高素质的教育机会，不论是马来人、卡达山族、伊班族、印裔或华人。玛拉工艺大学是否要开放给非土著，其实是一项可以开放及成熟的讨论。

指名道姓喊口号无法解决问题

据我了解，大部分马来西亚人民及政治领袖对任何种族课题感到不自在，其实把问题扫在地毯下是不健康的做法。我相信，大部分有正确思维的马来西亚人民，不管他们来自哪一个宗教，不仅是态度成熟，同时也能够以体谅他人感受的态度，去讨论或辩论那些尤关每一个人权益的课题。

指名道姓或高喊口号将无法解决事情，除非我们比赛谁喊得最大声。马华公会作为国内其中一个历史悠久的政党，可以扮演引领中庸及先进性的角色；举例说，如果其他族群对华人不满，那么马华公会有责任向他族证明，我们强调的是国内全体人民都是同等的伙伴。

我认为应该从表面意义去看待卡立的建议，或者这是所有人都不赞同的建议，但必须尊重。我不认为他应该被视为叛徒。

若 该大学日后开放给非土著，将是受欢迎的举措，就像任何由华社创办的学员，一向来都开放门户给各族群学生。我确信，这将促进各种族学生互相交融，这也是政府 在各项计划所要贯彻的精神。我们不要因为过去一星期出现言分歧论而自我分化，不论是关系到宗教或种族。让我们放眼一个共同目标，确保所有马来西亚人民都能 有最好的教育。

教育绝对不是一场零和游戏！

Source: MerdekaReview

Is Barisan 2004 Election Victory Legal?

GEORGE TOWN: The sum of RM218mil that a High Court has ordered Umno to pay for 2004 general election campaign materials exceeds the 2004 general election spending limit, said DAP secretary-general Lim Guan Eng.

He said in a press statement here Tuesday the Kuala Lumpur High Court judgment meant that the party had exceeded the spending limit of RM94.3mil at the maximum of RM200,000 per parliamentary constituency and RM100,000 per state constituency.

It was reported Tuesday that a High Court deputy registrar had ordered Umno to pay the sum to supplier Elegant Advisory Sdn Bhd for printed materials, transportation and mineral water used by the party in the 2004 general election.

Lim said that under Section 19 of the Election Offences Act 1954, a candidate could not spend more than RM200,000 and RM100,000 respectively for a parliamentary and state constituency.

"Umno had claimed that the campaign materials were for Barisan Nasional and had nothing to do with Umno. With 219 parliamentary seats and 505 state seats contested in the 2004 general elections, this means that a party like Barisan that contested all seats cannot spend more than RM94.3mil or else Barisan's victories are illegal.

"With RM218mil spent whether by Barisan or Umno on campaign materials alone, this is more than double the legally permitted amount," said Lim.

He said that spending above the limits imposed by the Elections Offences Act 1954 was an illegal practice under Section 27, and subject to a fine of RM5,000 by the Sessions Court, disqualification as a wakil rakyat and removal of rights as a voter.

"However, such laws are marked more by its breach than its compliance," he added.

Lim said this might now be an academic question since the 2004 general election had been superseded by the 2008 general election.

"The Election Commission’s failure to act and question the legality of the 2004 general election victories by the Barisan government not only makes a mockery of the very election laws it has drafted but also the spirit of democracy that votes should not be bought and sold," he said.

Source: The Star

Cops Pay RM24m To Lease 2000 Cars For 6 Months

KUALA LUMPUR (June 19. 2008): Police investigation officers (IOs) will be required to respond to crime cases within 30 minutes upon receiving a distress call with the delivery of 2,000 cars leased specially for the purpose of investigations.

Federal CID director Commissioner Datuk Mohd Bakri Mohd Zinin said with the Proton Waja cars from Spanco Sdn Bhd, there should be no more excuses from IO's about having difficulty getting to crime scene due to the lack of vehicles.

He said currently response time for patrol cars to a distress call is five minutes.

Today, at Spanco's headquarters in Gombak, he launched the use of the IOs' cars and took delivery of the first batch of 1,100 of the vehicles.

Bakri said the cars would be distributed to state and district police nationwide for the use of IOs attached to the CID, Commercial Crime, anti-narcotics and traffic divisions.

He urged those given the use of such cars to take good care of the vehicle and to ensure it is roadworthy at all times.

"The car is not for personal but official use only. I urge those entrusted with it to also economise on fuel when driving, especially at a time when petrol prices have skyrocket," he said, adding the maintenence of the vehicles will be undertaken by Spanco.

Mohd Bakri said the cars are embossed with police logos to deter the vehicles from being misused.

He thanked the government for the funding of the car lease which was allocated in last year's national budget.

Although he did not say how much it will cost, sources said the lease is said to be at RM2,000 per car or RM24 million for the 2,000 cars for six months. Spanco is a company awarded contracts to lease vehicles to government agencies and departments.

Spanco chairman Major General (Rtd) Datuk Osman Mohd Zain said the police force was their biggest clients with the latest procurement. He said another 1,300 cars would be provided to the police in the near future.


Comments:
RM2000 per month for a car? What car are the police taking??
The amount is just too high and way above what average people is having for monthly car installment. Is this contract being awarded through open-tender? What about the petrol? Is this really worthwhile?


The Sun: Cops Pay RM24m To Lease 2000 Cars For 6 Months

Malaysian Citizenship or PR?

I was disappointed again when reading through these two pieces of news last Tuesday. Though they were just verbal statement/pleading from the people, government should take a serious check whether such double-standard does exist in its policy.

TheStar dated 26 Feb 2008, Page N44. (Click to enlarge)

The writer (Malaysian) is pleading the government to grant his parents a PR status.

Jakarta Post dated 26 Feb 2008, Headlines Page 2. (Click to enlarge)

The interviewee (Indonesian) claimed that by staying in Malaysia for over 5 years, one can apply for Malaysian citizenship and get a Blue IC.

Are we keeping pace with FDIs?

MALAYSIA’S reliance on foreign direct investment (FDI) is well noted. Historically, it was FDIs that laid the backbone of the Malaysian economy – under British imperialism, plantation (rubber and palm oil) and mining (tin, petroleum) and after independence, the manufacturing sector (electrical and electronics).

FDI has played an important role in financing long-term economic growth in Malaysia. However, since the financial crisis of 1997/98, the changes in Malaysia’s FDI stock have been a cause for concern, especially when compared to its competitors.

The UN Conference on Trade and Development (Unctad) reports that global FDI stock has risen from US$551bil to US$12 trillion since 1980, with most of the FDI concentrated in developed countries. In 2006, 70% of FDI stock was located in developed countries while developing countries accounted for only 26%.

The lion’s share of the FDI stock in developing countries was in the East Asian economies. Together, they accounted for 38% of FDI to developing countries.

Malaysia cannot emulate China, India, or Vietnam but should emulate Singapore and Hong Kong given similar socio-economic conditions.

FDI stock in China increased from US$1.1bil in 1980 to US$293bil in 2006, with a significant jump recorded since the 1990s. If the FDI stock in Hong Kong, the gateway to China, was included, the performance would be all the more startling.

FDI stock in Hong Kong alone increased from US$21bil in 1980 to US$769bil in 2006. This is truly remarkable, as Hong Kong does not offer any incentives for FDI compared to other developing economies. India, another awakening giant, too has been recording tremendous growth in FDI stock. In 1980, FDI stock in India was only US$452mil. This grew to US$51bil in 2006.

In Asean, the star performers are Singapore and Vietnam. FDI stock in Singapore rose from US$5bil in 1980 to a staggering US$210bil in 2006. As for Vietnam, FDI stock increased from US$1bil in 1980 to US$33bil in 2006. This was remarkable considering that Vietnam was at war until 1975 and faced economic embargo from the US until 1994.

Malaysia started like Singapore with an FDI stock of US$5bil in 1980. In 2006, its FDI stock stood at only US$53bil, which paled in comparison with Singapore’s US$210bil. Furthermore, for the years 2001 to 2005, FDI stock fell lower than the US$53bil recorded in 2000. This is distressing as Malaysia has all the prerequisites as a favoured FDI destination and provides generous incentives to foreign investors.

There are several reasons why Malaysia is failing to attract and retain FDI in comparison to the frontrunners, especially Singapore and Hong Kong. The main problem has much to do with institutions.

In the World Bank's Doing Business 2007 Report, which measured “the ease of doing business,” Singapore was at the top while Hong Kong ranked fifth. Malaysia was only ranked 25th. It takes 11 days to start a business in Singapore and Hong Kong and 30 days in Malaysia, while addressing licensing issues in Malaysia takes 281days compared to 129 in Singapore and 160 in Hong Kong.

The World Economic Forum's Global Competitiveness Report and the IMD World Competitiveness Yearbook provide similar findings on institutional challenges in Malaysia.

Malaysia cannot emulate China, India, or Vietnam but should emulate Singapore and Hong Kong given similar socio-economic conditions. Lessons from Singapore and Hong Kong call for a return to meritocracy in the Malaysian civil service and an arm's length relationship between politicians and civil servants.

Extracted from TheStar

Just What Is An Islamic Car?

Still remember the news about Proton wants to produce "Islamic" cars? A lot of people must be pondering what "trick" is Proton trying to play. After the news broke out for about two weeks, we have comments given by Dr Syed Ali Tawfik al-Attas, Director General of Institut Kefahaman Islamic Malaysia (IKIM).

I extracted a few paragraphs of Dr Syed's view to share with you:

The cars are apparently “expected to have Islamic features such as the compass kiblat reading and compartments for keeping the Quran and scarves.” A complete perusal of the article betrays the fact that the focus was not on making a car “Islamic”, but rather on using the term “Islamic” as an advertising tool purely for economic gain.

My concern here is that Islam and all its associated elements – namely, Islamic, Islamisation and so on – are being corrupted by those who know not, and know not they know not (la yadri wa la yadri annahu la yadri). Islam is not a religion for the feeble-minded, nor is it the handmaiden of politics or a cliché (cogankata) for advertising, business and economics.

The fact that the Muslim world today suffers politically, economically and intellectually is due in large part to the Muslims, and not Islam.

In my opinion, far from ennobling the Muslims and the Muslim world, such proposals like an “Islamic car” bring shame, and invite unnecessary ridicule.


Hello, Datuk Syed Zainal Abidin, did you hear that?
* Proton has reached a new low today 12.30pm @ RM3.66

No Foreign Partner For Proton

Look at what our respected minister said.

I guess they have over-estimated what "Persona" can do for Proton. A few months of good sales do not really mean "TURNAROUND". A simple comparison with Toyota, GM, Hyundai will tell you that our Proton does not have the capability to compete at all. Are they planning to sell the same model for the next 10-20 years under government protection?!


After the news was published, Proton share price tumbled RM0.92 or 18% - approximately RM505mil capitalization vanished in one day!!! Well well, market seems do not agree with the decision. Wanna re-consider the alliance? Better do so!

MARCH FOR JUSTICE

JeffOoi has a very comprehensive coverage on the "March For Justice". It is a peaceful demonstration organised by Malaysia's Bar Council today (26 Sep 2007). I hope this will serve as a wake-up call to the government and all the Malaysian to review and clean up the judiciary.

SUPPORT! SUPPORT! SUPPORT!!!


Photos are taken from JeffOoi, click for more.

NEWS - A Bigger LCCT

PUTRAJAYA (August 9, 2007): A new low-cost carrier terminal (LCCT) that can handle up to 30 million passengers per year will be built, said Deputy Prime Minister Datuk Seri Najib Razak.

Located within the KL International Airport (KLIA) area and close to the main terminal, the project will take four years to complete.

Najib said the cost and the actual location of the new terminal which will be connected to the main terminal by rail service has not been finalised or identified.

Until this new facility is ready, he said the current LCCT near the KLIA, will be extended and upgraded, including work on the aprons and parking lots.

He said this after chairing the cabinet committee meeting on transport today.

Asked as to why a new terminal needed to be built when the current one will be expanded, Najib said it can take only between 10 and 15 million passengers per year, even with the extension.

It is learnt that with the projected pace of growth in low-cost control here and around the world, a bigger and better LCCT was needed.

"An immediate study will be done on the current LCCT's extension and upgrading works. An allocation will be finalised once the study is completed," Najib said, adding that the decision was made by the committee today.

He said that once the new LCCT terminal was completed, the old one will be convert for other use. He did not elaborate.

He said AirAsia would operate the new LCCT.

Transport Minister Datuk Seri Chan Kong Choy, who is also a member of the committee, said the new location "is within KLIA and closer to the main terminal".

On other matters discussed, Najib said the commitee agreed in principle to build new bus terminals, walkways and park-and-ride system in Kuantan, Kota Kinabalu, Tawau and Sandakan.

He said the Transport Ministry would do a study on this within a month before anything was done.

The committee also approved RM72 million for Sabah to buy locomotives and rolling stock for 30 level crossings.

"(Of the sum) RM57 million will be in the form of an easy loan, and the rest will be a grant," he said.

Source: TheSunDaily


My comments:
1. The current LCCT was constructed in June 2005 and fully operational in Mar 2006. After operating less than two years, Malaysia realized that the current LCCT cannot handle the increasing passenger volume(?!) What happened to the feasibility study conducted prior to the construction of LCCT? Looking abroad, we have already seen the tremendous success of low-cost carriers such as Ryan Airline, Virgin Blue & etc. Shouldn't Malaysia be foresight enough before start off with any projects?

2. Quoted from Star:"Transport Minister Datuk Seri Chan Kong Choy, who was at the meeting, said the current LCCT, which was first designed as a warehouse, would be converted into a cargo terminal when the new LCCT starts operations". Oh no, the LCCT is originally a warehouse!

3. I sincerely hope that the Transport Ministry can conduct a (really) comprehensive study for the new LCCT. Learn from other countries' experience and avoid expensive mistakes. We're a small country, but ambitious enough to carry out so many projects (IDR, NCER, Bakun & etc) at one time. Hope we're not over-stretching ourselves.

NEWS - BMC Buka Jalan @ 24-JUN-07

今早出席了由皇冠城开路委员会所主办的”Pak Lah: No toll, show us highway contract”签名集会．目标是收集一万个签名去向首相请愿，希望政府能正视问题．

BMC开路传单

最新的消息说道Grand Saga将在这一条1.5km的道路上建造收费站．如果事情属实，那这将是天下第一笑话，因为这将是全球最短的收费道路，也是第一个把收费站建在住宅区内．再说这件事具有非常的关键性，一旦收费站成功建立起来，将标榜着政府允许道路公司延伸它们的收费站到住宅区－成为人民的大灾难！

居民踊跃出席签名运动

人民抗议

事情的来龙去脉:
皇冠镇建收费站，荒谬 (22/6/07)
路程仅1.5公里却要建收费站 (21/6/07)
第三场反对大道收费起价集会 本周日下午蕉赖11英哩举行(17/1/07)
冲破警察封锁线越过收费站 五百人兴致高昂抗议路费涨 (31/12/06)
强逼缴过路费就是苛政！ 邓章钦：人民得杀掉老虎 (17/12/06)
过路费高涨出入被迫付两次 蕉赖皇冠镇居民第14次怒吼 (17/12/06)
Taking Their Woes To Parliament (31/8/06)
Second Protest Against Road Closure (4/7/06)
Residents Protest Closure (4/5/06)

NEWS - 马桶吞人

记得几个星期前, 某人一不小心把东西给掉入我家的蹲式马桶"黑洞"里. 害得我到处寻找长长的夹子. 买了回来但却夹它不起来, 而且搞得自己又脏又臭. (晕~)

其实这种蹲式马桶蛮危险的, 那"黑洞"的口张得开开, 什么都吞得下. 星洲最近就有报道一个马桶吞人的故事(如图).

马桶吞人

是不是好恐怖? 我再也不敢摸黑上厕了....

NEWS - 吉華華小（H校）榮譽上榜

哈哈, 没想到我的小学竟然榮譽上榜, 真是面上有光啊... 哈哈!

* 星洲日報 - 吉華華小（H校）榮譽上榜

NEWS - Proton/GM Tie-up

See what BusinessWeek (17-Jan-07) says about the tie-up between Proton & GM:

Proton and GM: An Ungainly Union?

Be careful, blogger! (you may be sued...)

If you do follow local news recently, you should know that two of Malaysia's foremost bloggers have been sued by NST. It has created a huge controversy. You can find their blogs here:

- Screenshots by Jeff Ooi
- Rocky's Bru by Ahirudin

Also, a blog called "Walk With Us" has been created to support these two bloggers... you may just want to find out as well.

NEWS - While Malaysia fiddles, its opportunities are running dry

MALAYSIA'S been at it again, arguing about what proportion of the economy each of its two main races — the Malays and the Chinese — owns. It's an argument that's been running for 40 years. That wealth and race are not synonymous is important for national cohesion, but really it's time Malaysia grew up.

It's a tough world out there and there can be little sympathy for a country that prefers to argue about how to divide wealth rather than get on with the job of creating it.

The long-held aim is for 30 per cent of corporate equity to be in Malay hands, but the figure that the Government uses to justify handing over huge swathes of public companies to Malays but not to other races is absurd. It bases its figure on equity valued, not at market value, but at par value.

Many shares have a par value of say $1 but a market value of $12. And so the Government figure (18.9 per cent is the most recent figure) is a gross underestimate. Last month a paper by a researcher at a local think-tank came up with a figure of 45 per cent based on actual stock prices. All hell broke loose. The paper was withdrawn and the researcher resigned in protest. Part of the problem is that he is Chinese.

"Malaysia boleh!" is Malaysia's national catch cry. It translates to "Malaysia can!" and Malaysia certainly can. Few countries are as good at wasting money. It is richly endowed with natural resources and the national obsession seems to be to extract these, sell them off and then collectively spray the proceeds up against the wall.

This all happens in the context of Malaysia's grossly inflated sense of its place in the world.

Most Malaysians are convinced that the eyes of the world are on their country and that their leaders are world figures. This is thanks to Malaysia's tame media and the bravado of former prime minister Mahathir Mohamad. The truth is, few people on the streets of London or New York could point to Malaysia on a map much less name its prime minister or capital city.

As if to make this point, a recent episode of The Simpsons features a newsreader trying to announce that a tidal wave had hit some place called Kuala Lumpur. He couldn't pronounce the city's name and so made up one, as if no-one cared anyway. But the joke was on the script writers — Kuala Lumpur is inland.

Petronas, the national oil company is well run, particularly when compared to the disaster that passes for a national oil company in neighbouring Indonesia. But in some respects, this is Malaysia's problem. The very success of Petronas means that it is used to underwrite all manner of excess.

The KLCC development in central Kuala Lumpur is an example. It includes the Twin Towers, the tallest buildings in the world when they were built, which was their point.

It certainly wasn't that there was an office shortage in Kuala Lumpur — there wasn't.

Malaysians are very proud of these towers. Goodness knows why. They had little to do with them. The money for them came out of the ground and the engineering was contracted out to South Korean companies.

They don't even run the shopping centre that's beneath them. That's handled by Australia's Westfield.

Next year, a Malaysian astronaut will go into space aboard a Russian rocket — the first Malay in space. And the cost? $RM95 million ($A34.3 million), to be footed by Malaysian taxpayers. The Science and Technology Minister has said that a moon landing in 2020 is the next target, aboard a US flight. There's no indication of what the Americans will charge for this, assuming there's even a chance that they will consider it. But what is Malaysia getting by using the space programs of others as a taxi service? There are no obvious technical benefits, but no doubt Malaysians will be told once again, that they are "boleh". The trouble is, they're not. It's not their space program.

Back in July, the Government announced that it would spend $RM490 million on a sports complex near the London Olympics site so that Malaysian athletes can train there and "get used to cold weather".

But the summer Olympics are held in the summer.

So what is the complex's real purpose? The dozens of goodwill missions by ministers and bureaucrats to London to check on the centre's construction and then on the athletes while they train might provide a clue.

Bank bale outs, a formula one racing track, an entire new capital city — Petronas has paid for them all. It's been an orgy of nonsense that Malaysia can ill afford.

Why? Because Malaysia's oil will run out in about 19 years. As it is, Malaysia will become a net oil importer in 2011 — that's just five years away.

So it's in this context that the latest debate about race and wealth is so sad.

It is time to move on, time to prepare the economy for life after oil. But, like Nero fiddling while Rome burned, the Malaysian Government is more interested in stunts like sending a Malaysian into space when Malaysia's inadequate schools could have done with the cash, and arguing about wealth distribution using transparently ridiculous statistics.

That's not Malaysia "boleh", that's Malaysia "bodoh" (stupid).

(Extracted from TheAge Australia)

NEWS – 马来西亚人的感慨

NEWS – 马来西亚人的感慨

就在国家刚刚独立了49年的第二天, 读到了这篇朋友转载过来的文章. 心里既感慨又愤怒. 究竟要到什么时候, 国家领袖才可以从”马来西亚人”的角度去思考, 停止一切狭义偏激的种族歪论呢? 吉隆坡和槟城有大把开着大房车的巫籍同胞, 也有着许多穷困的华籍和印籍! 我们需要一个可以不分种族, 公平照顾, 正视问题的政府.

明年就是国家独立50周年了. 下一个50年的马来西亚, 又会是一样的吗?

Link - 凱里：確實被邊緣化, 檳剩浮羅山背有馬來人
http://www.sinchew.com.my/content.phtml?sec=1&artid=200609021168