
A street sign is more than just a sign


Our Finance Minister clarified that RPGT would only be calculated from year 2000 onwards. We also have to remember that, in 2007-2009 the property market needed stabilisation and PM Badawi suspended RPGT from April 2007 till December 2009.
The move, was it to allow people to sell at a profit without RPGT??!! NO!!! It was to encourage people to buy then. Hence to say that all RPGT will be calculated from year 2000 is grossly unfair.
Here we are only arguing over the just implemented 5% RPGT for properties held for more than 5 years. Hence the more than 5 years should be worked back from 2018, which is for properties bought on or after 2013.
YESTERDAY
MEANWHILE BACK IN 2007
managing director Datuk Leong Hoy Kum said: “It is heartening that the Government has been so proactive in promoting an investment-friendly regime to enhance local investment, and draw foreign direct investment to Malaysia.”
property divisional director Jauhari Hamidi hailed the tax waiver as the “best news” for the property industry, homebuyers and investors, because it “will revive the market which has been soft in recent years.”
chief executive Shah Hakim Zain said the move would further attract foreign investments, while former Road Builder (M) Holdings Bhd executive vice-chairman Tan Sri Chua Hock Chin said it would spark interest in the secondary property market.
Bhd managing director Shahril Ridza Ridzuan told reporters that the scrapping of the property gains tax would encourage more secondary trading and liquidity in the secondary property market.
Read more at https://www.thestar.com.my/business/business-news/2007/03/23/major-boost-for-high-end-property/#10Gik3wyPO0tvtHq.99h
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Real Property Gains Tax (RPGT) is a form of Capital Gains Tax that is imposed on the disposal of property in Malaysia. It was suspended temporarily in April 2007 to December 2009, and reintroduced in 2010. In 2014, the RPGT was increased for the fifth straight year since 2009. Now, there’s a revision to the RPGT for 2019 in the latest Budget.
There are some exemptions allowed for RPGT. Among the exemptions are:
All the accounting firms signing off on dubious financials MUST be fined heavily or even jailed. Accounting was not just my bachelor degree’s major, I also did bloody Honours classes in them. Its boring like hell but important as well. It is a man made system of keeping track of data… seemingly simple but oh so important. In a capitalistic society where there are investors, owners, minority shareholders, regulators, … so many facets of society who have to rely on the validity, integrity and authenticity of these numbers.
Failing which, the entire economic ecosystem of trust, reliability and enforcement of rules and regulations (of those financials) breaks down.
Just look at the pictorial below, all the asset movements, valuations, justifications, collaterals for loans, asset valuations, asset disposals, veracity of figures, actual audit trail of assets and cash flows, etc… ALL required the reliance on verified figures. If NO ONE CAN DEPEND on them, the whole thing breaks down!!!
a) You cannot charge hefty fees and then say “oh well, its just financials”, … because people relied on it, investors relied on it, ratings agencies relied on them, etc…
b) If we just sign off on anything and everything WITH NO CONSEQUENCES, what kind of crap society we live in.
c) The accounting profession is a professional industry, which means, your opinion can be relied upon for making other important decisions. The hefty fees are not just to feed the bloody partners ok.
d) You cannot say “I am just an accountant”…. NO, you are the very core of approval processes, gatekeeper, and policeman of financial assets/data/cash/liabilities & their VERACITY … Decisions worth billions and billions are going to be made based on these figures (to lend, to buy, to collateralise, to sell, to invest, etc.).
e) If I know then what I know now – The defence that in light of the discovery “of new findings by DOJ etc…” now the older accounts can no longer be relied upon… does not hold up that well. DOJ was not the only one digging. Plenty of business journalists were doing the same at the time. Edge, WSJ, Sarawak Report… almost all of them were coming to the same conclusions that something is very wrong with the whole shebang then. Yes, even then.
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Deputy Minister in the Prime Minister’s Department Hanipa Maidin was bull shitting at the Dewan Rakyat when he said Two-third majority is needed to change electoral boundaries or wait for 8 years from the date of redelineation carried out under the BN administration.
Since 1986 till 2018 we had 8 redelineation and it all started when Mahathir became the 4th Prime Minister. Every election boundaries and people were moved here and there to achieve a sure win for Barisan Nasional. Two-third or not Mahathir will bull through in Parliament because all the politicians balls and vagina were squeeze very hard.
There is no difference today, it is whether Mahathir wants to do it or not.
It would be good if everyone can stop talking about Two-third when it is not in Mahathir’s vocabulary.
Everyday one Malay arse hole will screw things up in public making other races laugh at them.
The promise by PH before election they will abolish NSC.
Now that the power is in their arms, they want to so called amend NSC.
Whatever amendment in place will make sure the Prime Minister can do what he likes.
Giving such power to Mahathir is like telling him to re start Memali all over again.
In Malaysia the Malays are going mad each day by the dozen.
Yesterday a salaried girl got scolded for working as a salesgirl selling beer.
If the Malays does not want to work, do let other races work.
Why deprive others to earn a decent living.
Are the Malays encouraging other races to run wild like Mat Rempit and wait for handouts or be criminals robbing and killing innocent victims.
Next are the written Chinese sign that has to be remove.
Everyday I shake my head in disbelieve at how stupid the Malays have turn out to be. I can ignore those low class and uneducated Malays because they did not go to school.
But the Educated ones are the worst Malays in the history of Malaysia.
Everyday they fuck themselves in public for attention.
The names of the street or road were named after those who had contributed to the development of the States or Nation, yet the Malays who have contributed nothing are jealous of those who did. So what is wrong if written in Chinese. There are many road signs written in Arabic and Malay yet no one complain. Is this Saudi Arabia?
Today many like that stupid Malay minister by the name of Rani are given titles without contribution to the States or Nation. It is people like her that makes the Malays behave and look foolish.
I believe Malaysia is the only country where people need not work or contribute Nation building are given titles.
Why do we need useless Malay to change the History of Malaysia.
I HONESTLY BELIEVE AND KNOW THAT MALAYSIA CAN ONLY DEVELOP IF ALL THOSE MALAYS WILL JUST KEEP RELIGION AND RACISM IN THEIR BEDROOM.
STOP FUCKING MALAYSIA INTO SHIT HOLE.
Many of my friends were surprised when I told them that I considered Namewee a really smart, musically gifted, funny and noble guy. If you do not share this opinion, well, read on and maybe you will change your mind.
Namewee may ruffle some feathers with his antics, protest songs or even profanity. To me, I am very much like him, except for the musically gifted part.
Namewee is a lot more popular elsewhere in particular, China, taiwan, HK and Singapore than Malaysia. Malaysians again are generally uncertain or take for granted the talents we have until we are told by others outside the country. we tend to under-rate ourselves a lot.
Why “humanitarian”… he fought for most things which resulted in us having a new government, he played his part long before it was safe to do so …
His latest creation was brought on by his experience being locked up in a cell with loads of illegal Burmese migrants. The new government must find ways and implement effective rules to treat the migrants, legal or illegal, much better.
Already I am so fed up with the ways some families treat their maids. Malaysians have a long way to go in terms of being empathetic and treating everyone as equal and with respect.
Hopefully Namewee’s video will go some way to further highlight the plight of these migrants.
Many of us may not be aware of Namewee’s achievements abroad. His biggest feather in his cap has to be the highly moving duet with Wang Lee Hom. Stranger In The North highlighted the desperate plight of the many rural folks who had to move to urban cities to eke out a better living for their families. The angry rant and rap resonated loudly with many in China.
A protest song for the present times. The disparity in incomes, the long time being separated from their loved ones, all for what…
Look at the hits, 140 million and counting … splendid for a non-Gangnam style song. The song was and is still very popular throughout all Chinese speaking nations.
and, when he wants to be funny, he can be damn funny… below was the catchy, pun ladened Thai Love song, made into an extended video with storyline.
His Cantonese is better than my Mandarin… accented but damn funny. His pronunciation was so deliberately close to foul language. Big big hit in HK.
Namewee is highly respected by most music celebrities in the region and has worked with many, including G.E.M., Candy Lo, Meu Ninomiya, Amoi-Amoi, etc..
There are still so many wonderful songs by Namewee. He is still way under-rated. Still misunderstood by many.
Jack Neo was also featured in Namewee’s tribute to Jack’s comedy show and the Singapore cultural nuances.

TheEdge Weekly asked the question: WHY NO PREMIUM
Scientex is one of the world’s largest producers of stretch films. Scientex also produces BOPP films with an annual production capacity of 60,000 tonnes.
The company also produces cast polypropylene (CPP) and metallised films with an annual capacity of 12,000 tonnes, the biggest producer in the country.
“This merger will enable Scientex to offer an integrated range of products to a larger client base and enhance its capabilities in the flexible packaging business through synergistic and complementary products to better serve global clientele. Scientex also intends to maintain Daibochi’s listing status on the Main Market of Bursa Malaysia, and retain all the management and staff,” Scientex spokeperson said.
“We believe it is good value for Scientex to acquire Daibochi on [a] PER basis, with about 20 times PER for Daibochi’s FY17 (financial year ended Dec 31, 2017) earnings, 16.5 times for FY19, and 12.3 times for FY20. Industry average PER is about 15 times excluding Tomypak Holdings Bhd.” – TA analyst
Daibochi is a leading flexible packaging provider in the South East Asian region, with manufacturing plants in Malaysia and Myanmar.
Rationale:
1) The pricing based on current and forward PER was fair and slightly higher than the industry average.
2) Why should there be a premium??? A premium suggests that current prices were undervalued. Was Daibochi undervalued? Why should there be a premium – Daibochi’s share price could have been at RM1.20 or RM1.60 or RM1.80 when the deal is struck… at differing prices you would have called in undervalued, overvalued, etc… why base your opinion on the average price for the last 30 days. Historical prices is but one minor factor. Hence most M&A of established businesses (not startups or tech firms) would use PER or forward PER, as that will show whether the deal was PER accretive to the buying company.
3) Why there is no premium – Probably, I am guessing here, was because there were 14 shareholders in Daibochi. When you have 14 drivers in a Proton you won’t get far. Even if you have an appointed leader, it will never be as smooth or as decisive as one person with the substantial block.
4) The main key why there was no premium – Well, it is not a cash sale… it is a swap. A swap means the future fortunes of Daibochi shareholders will be in the merged entity under Scientex. They will be getting Scientex shares. There is really NOT MUCH point to do a “severe deal” for themselves as then it would weaken Scientex share price anyway (which they would be getting shares in). Just a proper arms-length deal that satisfies the regulators would do.
5) Listing Status – Part of the reason for the lack of premium was that Daibochi’s listing will be maintained. Everyone knows there is a RM20-40m premium for a Main Board counter. Scientex can sell Daibochi listing status later, which will be reflected then in higher Scientex prices, which would be what current Daibochi shareholders will be holding.
6) Control – That would be the only issue that might give rise to a premium. Losing control. But can the existing G14 move the company to the next level. Control is not everything. Malaysians have this silly over estimation of the need for control. Contro, is only important if you are mainly going to do shenanigans. Otherwise, any deal must be weighed by their accrued financials. Is 1+1 more than 2. If yes, then it is a good deal.
Congratulations to Azmin and gang who won in the recent PKR election.
Next week will begin the Bank Run in Malaysia.
This good news is the reward for winning.
Also not to be forgotten is Mahathir and Daim who still think they are the only ones capable of running Malaysia AND FOR STEALING RM66 BILLION RECENTLY.
The next 6 months will show HOW CAPABLE MAHATHIR, DAIM AND AZMIN WILL RUIN THIS NATION MAKING 2 MILLION MALAYSIANS BANKRUPT AND WITHOUT JOBS.
BEFORE THE END OF THE 6 MONTHS, EVIDENCES WILL SHOW WHERE RM66 BILLION WENT AND THE AMOUNT OF SLUSH FUND AZMIN HAD AND WHO ARE THE PROXY. ALSO FULL DETAILS OF AZMIN ALI ACCUMULATED WEALTH FROM THE 11 YEARS ANWAR WAS IN JAIL.
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Let me say that I think the concept has a lot more merits than the current ‘reception’ is willing to give it. I am not aligned with anyone or any company dealing with this business segment.
It is very important to note the group of people that the concept is targeting: FIRST HOME BUYERS. More specifically, first home buyers who are having problems buying the said property. It is not for anyone else.
Issues that I have against the concept:
a) Tough for the funders – The 5 year lockup period will actually stave off speculation or that the funders side will get a hefty return on their investment at the expense of first home buyers. In fact, in there is no interest paid to funders, its actually quite a sad deal for the funders.
The funders pay 80% of the property, for what? For a maybe/potentially/ yes-no 20% gain after 5 years. If you put your own funds in a savings account, 12-month automatic rollover, you could get 3% compounded over 5 years = 15.9%. Hence 20% versus 15.9% is nothing to shout about.
Even if you compound it at 2.5% over 5 years = 11.3%. The 20% return is not guaranteed. Funding the project also means you have to take a view on the local property market.
Developers do not get 100% of purchase price but rather just 80%. The 20% is granted to developers only if the property rises above the purchase price at the end of 5 years. Otherwise the 20% will be earning a 5% p.a. and used to protect the downside for investors.
b) Saving the developers – We know we have a lot, a bloody lot of properties that are unsold. If nothing is done, the markets will unwind itself eventually – either developer keep dropping prices till it reaches real affordability levels, or it keeps the properties on their books till the sentiment recovers or the cows come home (bankruptcy).
The latter has the consequence of suppressing the rest of the property market in terms of prices. The sad fact is that too many Malaysian households have taken on hefty property mortgages. In a flattish or slowdown market, these households will have to crimp their spending or even sell additional properties at a loss.
The Fund My Home project will “save” many developers from “losses” as cited above or eat into their capital for having to keep the properties on their books.
They have overbuilt for sure, they have overestimated the demand and affordability, and in a neutral stance, they have to bear the downtrend and their business mistakes.
While the Fund my Home project has a lot of merits, I do not wish to see first time home buyers being too eager to snap up “substandard” properties that developers cannot sell. To a certain extent, that concern has been mitigated by the “screening process” by TheEdge team. Not all properties will be permitted on the platform.
Why protect the buyer and not the seller? Because we are not here to save the developers. As a matter of fact, we are already helping the developers to sell properties that they themselves CANNOT sell. Hence the developers should not be looking at normal profit margins (judging from the fact they made so many business mistakes such as overbuilding, overestimating demand, etc.).
The bulk of pain has to be shouldered by the property developers, as explained above.
c) What if the buyer defaults – The developer is supposed to take back only 80% of the property price at the beginning. The remaining 20% will be kept as minimal returns for investors in the home. Hence the funders are protected even if the property were to lose 20% of its value at the end of 5 years.
However, say within that 5 years the buyer lost his/her job and the property at the end of 5 years has a market price that is 40% below the initial entry price for the buyer? The buyer basically is bankrupt now, so at 40% loss, no party will want to sell into the market. Who bears the additional 20% losses?
d) EPF Account B – Currently Account B takes up 30% of our contributions. I assume first home buyers will be drawing down from Account B to help with the initial 20% payment. I think the government can make the exception for first home buyer to take out the full Account B plus an additional 20% from Account A (if required) for the project. Seriously, its the 20% payment that will be the biggest hurdle. Plus the same person is building equity and not speculating. Same as before, if they were to sell the property, they will have to put back the same sum back to their EPF account.
THE BENEFITS
a) First time home buyers can almost forget about owning a home on a RM4k-5k salary. Hence FundMyHome should be weighed AGAINST the alternative of renting. I need not do a Renting vs owning 101 course here to highlight the miniscule difference to participating in the program vs renting. Or do I?
Say you cannot afford the 20% down payment but you have a salary of RM4,000. The platform will help to try secure a RM100k personal loan. Say the interest payment is 7%. The person would be paying interest RM7,000 a year = RM583 a month. Assuming nothing changes, RM583 in rent cannot even get you a room at Choo Cheng Kay flats. But the family gets a house/unit all their own now.
Even if at the end of 5 years, you decide not to take up up the remainder, you can still sell your 20%, assuming market was flat, and get out. But you got a silly RM375 rental a month for a nice home for 5 years.
b) Catch up – The worst thing for first home buyers is not being to catch up to the property prices. Imagine waiting for your household income to jump from RM5k to RM10k a month. Maybe it will take 5 years but where will property prices be then. Your RM400,000 unit may now be at RM550,000.
You can do the math yourself that you have bought insurance for your affordability. Giving up the initial 20% is not such a big deal, as I have explained that the funder’s side have their risks and rewards to be weighed out as well. In this case you are giving up RM80,000 gains and could refinance for the whole unit/house for RM400,000 – RM80,000 (initial payment) + RM80,000 (funders’ returns) = RM400,000.
You will be financing a mortgage of RM400,000 at the end of 5 years for a property that is worth RM550,000. Giving you an equity of RM150,000 already.
c) EPF Account B – After 5 years, the same person with RM4k salary, assuming no increase, would have saved 11% +13% (contribution) = 24% of RM4,000 x 12 x 5 = RM57,600. Thirty percent would have gone to Account B for housing = RM17,280. That amount could be used to pay down further or refinance purposes.
We should allow another 20% from Account A for this purpose, which would have made for a total of RM28,800 at his disposal.
MY VIEW
Overall a brilliant idea that tries to balance the risk-return for the interested parties.
If the team stay vigilant on the screening process of properties allowed to be on the platform – this will succeed wildly. This proposal should get full support from the government, and property developers should be thankful. Those making noises are those overpricing their substandard properties and probably lamenting why they cannot get on the platform.