Some local business news of importance

The Sarawak Corridor of Renewable Energy (SCORE) has already attracted interest from investors, especially those in the heavy capital and energy intensive industries, despite its infancy stage said Daputy Chief Minister Tan Sri Dr George Chan. He said that 80% or RM267bn of the total proposed investment totaling RM334bn, which would spread over the next 20
years came from the private sector. Dr Chan said a few MNCs have decided to invest in SCORE and works were progressing smoothly and on schedule to meet the tight timelines set by its investors, particularly in the Samalaju Industrial Park, Tanjung Manis and Mukah Industrial Estate. (Malaysian Reserve)

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The Government’s proposal to impose a real property gains tax (RPGT) of 5% from Jan 1 may just be a temporary measure, says Taxand Malaysia Sdn Bhd managing director Dr Veerinderjeet Singh. “We feel that it is a temporary imposition. We think that in the long term, the original scale rates of 30%, 20%, 15%, etc will be coming back, he said. Prior to the
exemption of the RPGT in April 2007, tax on gains from property sales was on a progressive basis from 30% to 0% depending on the holding period of the property. Veerinderjeet however, said that total exemption from RPGT would be unlikely. “What would probably not change is the 5%,” he said. He added that property owners should be thankful that the RPGT was capped
at 5% and not higher. (Starbiz)

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New home buyers are expected to make higher payments for their loans with some banks increasing their mortgage rates early this month. Various banks showed lenders like Maybank, Public Bank, Standard Chartered Bank, Alliance Bank and EON Bank had revised upward their mortgage rates. Some have even scrapped the moving-cost element- legal fees, stamp duties and other disbursement fees for loan documentation by the banks – from their home-loan offerings. It is learnt that existing home loans would still be maintained at previous rates depending on the terms and condition of the contract. “Loan growth for the commercial banking sector has been subdue during the first 9 months at an annualised rate of 6.9% compared to the growth rate of 13.4% in 2008. However, deposits have been growing at a faster annualised rate of 20.5% during the same period. This invariably exerts pressure on the banks’ interest margins and eventually profitability,” Malaysian Rating Corp Bhd vice-president and head of financial institution ratings, Anandakumar Jegarasasingam said. The above banks have revised their rates to BLR minus 1.8% from BLR minus 2%-2.3%. (Starbiz)

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Prime Minister Datuk Seri Najib Razak said the outlook of Malaysian economy for Q3 has brightened. The improvements in the national economic outlook have come about “not by chance, but by choice”, he said. Prime minister said the government’s RM67bn fiscal stimulus packages have helped the economy through a global recession and generated muchneeded
economic activity to make up for a slowdown in private sector demand. (BT)