Tax incentive for the strong and wealthy
By Lee Wee Tak
Lately, in a dynamic effort to win over urban voters who shun gutter politics and are more livelihood issues focus, the prime minister has taken over the role of many top business executives in announcing various private investment initiatives, probably creating the impression that he is the one who got the projects in.
http://mystockfolio.blogspot.com/2011/03/najib-announces-9-etp-projects.html
I never see a prime minister of any country announcing private investment initiatives like that (except the much ridiculed Tricubes Berhad). We have business section in newspapers and corporations hire press officers to do this. Even Mahathir did not run to the podium and make himself the unpaid press officer for Berhad this and Berhad that.
Try google up “Najib announce investment” and you will see a great press officer in action.
Anyway what the top does, the lieutenants might follow.
—————————————————————-
Saturday May 7, 2011
100% tax relief to boost health tourism
KUALA LUMPUR: Private hospitals involved in the healthcare tourism industry will be given 100% tax exemption for several initiatives that they take up.
Health Minister Datuk Seri Liow Tiong Lai said these included the construction of new hospitals and for the expansion, modernisation and refurbishment of existing ones.
He added that the Government was finalising the provision for tax exemption equivalent to 100% of qualifying capital expenditure.
Liow announced this at a press conference after opening HSC Medical Centre here yesterday.
The Government has also made provisions for expenses incurred by private hospitals to obtain domestic or internationally recognised accreditation to be eligible for double deduction incentive under the Income Tax Act 1967.
—————————————————————
The thing that put me off is why give tax incentive (read: at the expense of Malaysian tax payers) to wealthy overseas tourists looking for a bargain?
http://www.healthtourisminasia.com/malaysia.htm
The Malaysian government is actively promoting medical tourism in Malaysia. As a result the number of private hospitals providing quality medical care to international patients has increased over the years. Medical and surgical procedures in Malaysia cost only 20 to 25 percent of the same in USA or UK. The official language of Malaysia is Malay, but English is spoken and understood by a majority of the doctors and health staff. The prices of medical and surgical procedures are a fraction of those in developed countries. For example, a breast enlargement procedure in Malaysia costs around £2,110, whereas in UK it costs between £3,500 and £5,000. Thus, patients achieve a full 50 percent saving. Patients seeking a full facelift including upper and lower eye lid lift, brow lift and neck lift would have to pay out about £2,900 in Malaysia. Whereas in the UK, this procedure would cost between £4,000 and £6,000.
These private hospitals are not exactly struggling to make ends meet. For example, according to the 2009 annual report of KPJ Healthcare Berhad which is owned up almost to 50% by Johor Corporation, the profit numbers and dividends are impressive. Note the effective tax rate is already lower than the statutory rate of 25%. With such profits, do they need more incentive?
Read more at: http://wangsamajuformalaysia.blogspot.com/2011/05/tax-incentive-for-strong-and-wealthy.html
