Saturday, October 26, 2013

Is GST implementation confusing you?












The Malaysia 2014 Budget is tabled on the 25th October 2013, and one thing consider new concern from the rakyat will the implementation on 6% of  Goods and Services Tax (GST) starting from 1st April 2015.

There are few website can be refer to check more info for the GST, like the official website http://gst.customs.gov.my/  and if it is too complicated to flip the pages on the official website, http://savemoney.my/gst-in-malaysia-how-the-goods-and-services-tax-affects-you/ is rather useful for your reading reference.

And I think what most of the consumer is concerning is how is the final goods price end up to the end user? Is it will be higher or lower with compare to the previous tax method?

Taking and extraction from a forum discussion may have a clearer view on this,

The question start with,

People who doing business in trading of goods should have some confusing on GST.

For example, how a car spare parts end up at end user.

If using normal circumstances, it will be,

Importer in Malaysia (Dealer or Distributor) -> Retailer (Spare Parts shop) --> Foreman (Workshop) --> End User (Car Owner)

So when distributor sell to retailer, their bill need to impose 6% GST, and retailer sell to foreman another 6% and foreman to owner another 6% ?


In the scenario, end user is concerning if the GST is charging as such above example ended up with compounding 6% for 4 times (In some industry may be more than 4 level of transaction), but please find how the actual transaction go through in the below example,

After registration, all businesses say with revenue > RM1 million must charge GST at the prevailing rate. This GST that they charge and collect is known as output tax, which has to be paid to LHDN. GST incurred on business purchases and expenses (including import of goods) are known as input tax. Businesses can claim input tax if conditions for claiming are satisfied. This credit mechanism ensures that only the value added is taxed at each stage of a supply chain, hence GST also known as Value Added Tax (VAT). 

As an Illustration

The GST-registered manufacturer imports leather from overseas
The GST-registered manufacturer uses them to manufacture a bag. 
The GST-registered manufacturer sells the leather bag to a GST-registered retailer. 
The GST-registered retailer sells the bag to end user like you and me

1. Manufacturer

Pays GST to Malaysia Customs for imports
Import value = $100
Import GST paid = 6% X $100=$6 (input tax to claim from LHDN)

Charges and collects GST for sale of toys to retailer
Selling price to retailer = $200
GST charged to retailer = 6% X $200 = $12 (output tax to pay LHDN)

Net GST payable to LHDN = $12 - $6 = $6 (6% of original import amount)

2. Retailer

Pays GST to Manufacturer
Purchase value = $200
GST paid = 6% X $200=$12 (input tax to claim from LHDN)

Charges and collects GST for sale of toys to end consumer
Selling price to end consumer = $300
GST charged to end consumer = 6% X $300 = $18 (output tax to pay LHDN)

Net GST payable to LHDN = $18 - $12 = $6  (still 6% of original import amount)

3. End Consumer

Pays GST to Retailer
Purchase value = $300
GST paid = 6% X $300=$18

Net GST payable to LHDN = $18 - $0 = $18 (End consumer is not GST-registered. Therefore, he cannot claim GST paid on his purchase from LHDN

4. How to check how many people should pay GST in the above mentioned supply chain?

No. of parties
= End Consumer GST / Intermediate GST
= RM18 / RM6
= 3

5. How to minimise your GST as end consumer?

Always buy from the top source, meaning directly from manufacturer. 
Those people who have been overseas will know warehouse sales very popular overseas, reason is able to bypass all the intermediaries.
So I forsee a lot of retailers will die off slowly and a lot of manufacturers will come out with warehouse direct selling !

6. How a RM1 million revenue kopitiam can avoid collecting GST?

Simple, split into 2 companies with RM500k each.

The above example is extract from a forum discussion which I personally feel it is rather simple for consumer to understand the mechanism without need to reading such a long article in the official website.

Monday, October 14, 2013

Yeah, the 100 Doraemon is coming to Malaysia


























When the Harbour City of Hong Kong hosting the "100 Years Before the Birth of Doraemon" exhibition on 14th August 2012, Doraemon fans in Malaysia is wondering if there are any chances this exhibition will come to Malaysia, especially most of us is exciting to watch the 100 unique figure of Doraemon along with his difference gadget.

And after Hong Kong, the exhibition is pass by Taiwan, Shanghai China and Japan, which the Tokyo exhibition just finished on 6th October, we finally hear the news that the exhibition will be coming to Malaysia tentatively in the mid December 2013.

The event which bring in by Animation Internation (M) Sdn. Bhd. still facing some technical problem of the venue for the exhibition as the exhibition need a place of 50,000 square feet, with the venue owner willing to rent out 100 days for the exhibition, this is quite a big challenge for the organizer.

The full article on the news in Chinese version from Sinchew website as below,

12月將掀藍色旋風‧哆啦A夢大馬登場

  •      
(雪蘭莪‧八打靈再也12日訊)風靡全球的日本著名卡通人物哆啦A夢博覽即將抵步大馬,而我國更是東南亞首個舉辦該博覽會的國家。
  • 鄒億明認為,國人此次將會被許多博覽中的意外驚喜所震撼。(圖:星洲日報)
“每個人從小都希望能擁有一個哆啦A夢,雖然知道不能成真,但它代表著希望及夢想,告訴我們一切都是有可能的。”
國際影業有限公司(Animation International(M)Sdn Bhd)大馬區董事鄒億明在接受本報專訪時表示,這是他將哆啦A夢博覽帶進我國的原因,希望將哆啦A夢故事中的正面思想和價值觀傳達給國人,以製造一個充滿正能量的地方。
佔地5萬平方尺
“哆啦A夢秘密道具博覽”預料於今年12月中在吉隆坡隆重引爆,屆時博覽將維持100天至2014年3月。
鄒億明透露,該博覽預計將佔地5萬平方尺,由於佔據空間大,因此地點難尋。
“這是我們面對最大的挑戰,除了佔地大,也很少地方會允許主辦方舉辦長達100天的博覽。”
儘管如此,他表示,公司目前正處在決定地點的最後階段,相信地點將在數星期後拍板定案。
成人票暫定25令吉
另一方面,他指出,該公司目前仍在探討博覽入門票事宜,暫定為成人票25令吉,兒童票為15令吉。
國際影業有限公司早前曾協助主辦香港及台灣的“哆啦A夢誕生前100年展覽”,而4月28日至6月16日則在上海主辦相關博覽。
從台運抵
100哆啦A夢齊亮相
鄒億明指出,博覽將分為數個部份,包括哆啦A夢誕生的歷史、100隻哆啦A夢展覽、大雄與靜宜婚禮、哆啦A夢場景街道、哆啦A夢咖啡廳、哆啦A夢周邊產品售賣處、漫畫及遊戲區。
他說,公司也會將台灣博覽中的100隻哆啦A夢運至我國,主要展示哆啦A夢的100個法寶。
“哆啦A夢場景街道包括大雄等人經常玩耍的公園等8至10個場景,讓參觀者能感受哆啦A夢的漫畫世界。”
將設主題咖啡館
此外,他指出,博覽內將建設哆啦A夢咖啡館,屆時參觀者在逛累後可到咖啡館休息,享用漫畫中有名的“記憶吐司”及哆啦A夢的至愛—銅鑼燒。
“除了哆啦A夢,博覽中也會展出其他角色肖像如大雄、靜宜、阿福等,這項博覽主要供參觀者拍照留念,因此我們歡迎所有參觀者攜帶相機到來見證哆啦A夢這麼難得的博覽。”
他也興奮表示,博覽中還會展示大雄的書桌,就是哆啦A夢從未來世界來到大雄家的出口,供參觀者拍照。
儘管如此,他坦言,上述概念僅是初步想法,而日後會將因為地點的限制而有所變動。
哆啦A夢沉睡多時
“是時候醒了”
“哆啦A夢已經沉睡多時,現在是時候醒了,以讓更多人認識它。”
自小就喜歡哆啦A夢的鄒億明表示,哆啦A夢對許多人而言,是個“超人”,因為它總能做到別人所不及的事。
耗400萬完成裝置
他坦言,該公司花了一年多的時間策劃這項博覽,而截至目前共耗資了400萬令吉完成博覽裝置工作,但尚有許多開支包括人力資源、100個哆啦A夢的運輸等開銷。
雖然如此,他說,能夠在大馬舉辦一場大型哆啦A夢博覽是一個難得的機會,因此該公司也為此感到高興,並希望所有國民都能前來共襄盛舉。
“哆啦A夢獲得來自各年齡層的人士喜愛,也能讓70到80年代一輩回顧孩提時期的回憶。”
鄒億明認為,哆啦A夢博覽也可促進親子關係,讓父母或長輩在攜帶孩子參與博覽時增進彼此關係。
他說,博覽的時間剛好落在學校假期,及一些節慶日包括聖誕節、情人節等,讓無法出國遊玩的家庭有個遊玩好去處。
期望上演求婚情節
他也期望,屆時博覽會上演一些浪漫情節,如情人在大雄的婚禮場景上向愛人求婚等。
“哆啦A夢漫畫中有很多正面的價值觀,如正面的友情、親情價值觀等,讓我們參考,而哆啦A夢的多個故事也教育我們面對困難時不要放棄。”
料吸引70萬人參觀
他預料屆時將會吸引70萬人到來參觀,更希望所有的參觀者都能享受其中。
他也深信,博覽中的多個意外驚喜將令大馬人震撼,因為有許多展出品是大家從來沒看過的。
(星洲日報/報導:李佩霜)

For those interested in the previous exhibition news and photo, can log in to their official Facebook page in the below link.

Friday, October 11, 2013

Between collector and investor


















Had been involving in share market trading, and seeing most trader are more interesting trading in penny stock rather than the value investor who buy the fundamentally strong blue-chip, which let me have some kind of rather similar feeling on the current local coin collection scenario.

In my earlier post on the commemorative coin issue from Bank Negara Malaysia(BNM), we can find out some interesting fact in the after market price trend of this coin.

BNM is issuing 5 types of specification of coin, normally mintage quantity is lesser for the higher price range for Single Gold or the Set of 3 with Gold Coin inside, and the cheapest with most mintage quantity is the Nordic Gold.

For this latest issued coin, the Set of 3 only have 500 set and the Single Gold only have 750 pieces circular in the market, while the Nordic Gold type have a whopping 25,000 pieces in circular.

But for the Nordic Gold coin which sold by BNM at RM10, the after market price is able to sell at RM15 to RM20 even on the same day of the coin issue date, that represent a 50% to 100% gain for the first owner. But for the Single Gold which cost RM1,800/piece I think it is not so easy to find a fast buyer for a 10% gain of value.

But just like share market, those Single Gold with only 750 pieces circular in the market, the growth of value may more sustainable than those with 25,000 pieces in circular, once all the genuine collector holding with it, may be price will be shouting high without any seller in the market.