The T20 group is defined with the median household income of at least RM13,148 while the M40 and B40 groups’ median household income have moved their bars up to RM6,275 and RM3,000 respectively, according to the Household Income And Basic Amenities Survey 2019 research findings from DoSM. In the report, it stated that the median household income for T20, M40 and B40 has shown a compound annual growth rate (CAGR) of more than 6%.

On top of that, Malaysia’s household median monthly income crossed the RM5,000 mark for the first time in 2016, with M40 households registering the highest growth in median income, according to the Department.

Keep in mind that the income group definitions are not fixed. The names, B40, M40, and T20, represent percentages of the countries’ population of Bottom 40%, Middle 40%, and Top 20% respectively. The values may increase or decrease year-to-year, depending on the country’s GDP, which is why the median household income is used as the determinant instead.

Malaysia’s taxes are assessed on a current year basis and are under the self-assessment system for all taxpayers. All income accrued in, derived from, or remitted to Malaysia is liable to tax. That said, income of any person (other than a resident company carrying on the business of banking, insurance or sea or air transport) derived [from sources] outside Malaysia and received in Malaysia is exempted from tax. One thing worth mentioning is Malaysia has an extensive number of double tax treaties available for the avoidance of Double Taxation.

Corporate Income Tax
resident and non-resident organisations doing business and generating taxable income in Malaysia will be taxed on income accrued in or derived from Malaysia.

Individual Income Tax
individual income tax in Malaysia is imposed on earned in Malaysia or received in Malaysia from outside Malaysia.
very individual is subject to tax on income accruing in or derived from Malaysia.

Beginning 1st January 2019, the Government will offer a free insurance scheme worth RM2 billion to individuals between the ages of 18 to 55 within the 4.1 million B40 households. This scheme will provide medical coverage for 5 years to the targeted recipients.

Finance Minister Lim Guan Eng said that the Government will be introducing a National Protection Scheme beginning Jan 1 next year, to provide free insurance and takaful protection for 36 critical illnesses for qualified low-income households or B40.

The scheme is an initial step by the federal government to widen access to health services for vulnerable groups. Lim said the scheme will provide health protection against 36 critical illnesses, for qualified recipients with payment up to RM8,000.

Lim said coverage under the scheme commences Jan 1, 2019 and the scheme’s registration and customer support services will be in operation from March 1, 2019.

“The scheme also gives daily payments as income replacement in the event of hospitalisation for up to 14 days at RM50 per day or RM700 per year,” he said.

“All qualified recipients under the scheme will be notified through SMS messages,” Lim said, adding that further information on the mechanism and implementation of the scheme will be disclosed when it is officially launched in early 2019.

Among the current trends that are creating waves in the accountancy profession are Big Data and Analytics. Companies of all sizes create massive structured, unstructured and semi-structured data every day. Accountants and financial professionals can leverage on Big Data. This is because they have the ability to digest and analyse data in such a way that it makes it easier for management to make informed decisions. This requires accountants to be updated with the latest trends in business to be industry relevant. Professional education and certification plays a key role in this. Professional exams are frequently updated by the institutes to ensure that they build in key trends and competencies which allow future accountants to equip themselves with the necessary skills and knowledge be ahead in their career.The government’s announcement that Malaysia needs 60,000 accountants to achieve the High Income Nation status shows that the government recognises the role of accountants in the economy. The MIA is passionate and committed in ensuring that the target is achieved. Nonetheless, it is not an easy task although there are currently about 33,000 accountants registered with the Institute.

CIMB analysis comes a slower loan growth of circa fifth in 2019, with the expected retardation coming back from the commercial loan segments.

In a note Jan one, its analyst Winson metric weight unit same the projection is “in read of the unfavourable operative surroundings amid the policy changes in Asian nation, including the trade tensions between the U.S.A. and China, still because the weak loan applications or approvals”.

Looking back at 2018, metric weight unit same each loan applications and approvals declined in November 2018 by twenty four.3% year-on-year (y-o-y) and six.7% y-o-y severally.

“It was even a lot of dispiriting that the applications/approval of all 3 major loan segments, i.e. residential mortgages, assets loans and car loans, shrunk y-o-y in November 2018. this might purpose to a weakening trend in loan growth in early-2019,” he added.

CIMB analysis maintains a “neutral” appeal Malaysian banks and designated RHB Bank Bhd as its high choose for the arena.

At 9.58am today, RHB Bank shares were up zero.19% or one fractional monetary unit to RM5.30. Hong Leong Bank Bhd rose zero.1% or two fractional monetary unit to RM20.42.

Meanwhile, Malayan Banking Bhd’s share worth born zero.42% or four fractional monetary unit to RM9.46. AMMB Holdings Bhd fell one.38% or six fractional monetary unit to RM4.28. Public Bank Bhd shares were down zero.32% or eight fractional monetary unit to RM24.68, and CIMB cluster Holdings Bhd swaybacked zero.17% or one fractional monetary unit to RM5.70.

For corporations of all sizes, the foremost common expectation was that they might expertise middling growth in 2019 (from 2-5%), however that masks one thing of a shift from last year, with a lot of corporations probably to report double-digit growth, high growth (from 6-9%) or low or declining growth (1% or less).

For instance, twenty seven of tiny corporations expect double-digit growth in 2019, versus nineteenth last year, whereas thirty six expect low or declining revenues in 2019, versus twenty seven last year.

1. Enable smart organization for a distributed workforce.

Since accounting info hold on within the cloud is more or accessed anyplace, team members will quickly and simply complete their work no matter their physical location.

2. Maintain relationships and easily verify discrepancies.

Relationships with vendors and distributors play an infinite role within the success of the many little businesses. once a trafficker or distributor queries why a bill hasn’t been paid, small-business house owners that leverage cloud-based tools will quickly explore for invoices. Advanced cloud tools enable team members to look by nearly any term to find a bill and establish whether or not it had been incomprehensible and obtain it quickly to preserve the seller relationship.

3. Use a broader suite of secure apps.

Cloud applications such as QuickBooks Online and Neat not only provide access to information and documents from any device, but they also integrate with other cloud-based tools. As soon as a small business starts using one cloud-based accounting technology, it’s easy to extract and leverage data across a number of different platforms and reduce time spent on manual data entry.

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When you’re first starting up, you should immediately set up a checking account for your business. By doing so, you’re protecting yourself and your business. A separate business account will provide asset protection as well as corporate veil protection, as long as you’re paying your business expenses from your business account and your personal ones from your personal account.

Keeping these two accounts separate will also protect you from any run-ins. Open a business account simply for better management and your own sanity. It makes life easier and more organized, so at the end of the year you’re not going to go crazy having to separate everything.

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1. Don’t procrastinate.
One of the biggest mistakes Branch sees new entrepreneurs make is that they put off their bookkeeping needs. Bookkeeping is actually very simple. If you break everything down into small categories — categorizing expenses, paying employees, sending invoices — the whole thing becomes much more manageable and the compulsion to put it off lessens.

2. Understand your seasonal cash flow.
You need to know your sales cycles as well.Having extra capital in the bank can mean the difference between being able to weather the long periods before revenue from past sales manifests and having to fold early because your cash has dried up.

3. If you have to work 80 hours a week, you’re not profitable.
If you have to work 80 hours a week to keep your business afloat, you’re not profitable.Too many startup entrepreneurs blow through the earliest stages of their company’s growth by putting all their time and energy into their businesses at the expense of their health and relationships. Undervaluing the time you invest in your business hurts everyone involved.

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1. Strike a deal to pay a fixed amount for utilities.
2. Invest in tools and practices that lower highly variable costs.
3. Calculate the variable expense average
4. Give yourself some cushion
5. Always compare your actual spending to your estimates.
6. Create a savings account specifically for variable expenses.
7. Obtain a business line of credit for emergencies.

When creating a budget for your small business, you are attempting to plan how much money you’ll need to make in order to cover your costs — and then some.

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Strong businesses have a solid handle on their financial reality, and the cash flow statement is an excellent, if not the best, measure of a company’s ability to generate cash in excess of cash invested. Over a sufficiently long period of time, all businesses have to generate positive cash flow or they will go out of business.

1. Changes in receivables and payables.
Companies should set optimal accounts receivables and payables levels through corporate and financial strategy, then forecast those accounts according to their plan. The error is to simply grow A/R and A/P with sales. 

2. Tax liabilities are another source of variability in projecting cash flows.
A business is not likely to be in touch with every tax change, and that is why the company hires tax professionals and advisers. Tapping into the expertise of the company’s accountants before the annual cycle begins is a good technique to avoid problems in the tax line.

3. The biggest cash flow statement error can start at the top: the income line.
The statement of cash flows is built upon the foundation of income delivered from the business’s operations, and errors in income projections can have a large impact on cash flows. One of the most common pitfalls in income statement projections is to incrementalize line items. Using the basic building blocks to drive forecasts does two things: it provides a solid structure to the operating performance of the business and it raises relevant questions all along the way.

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When you’re running a business, the ultimate sign of financial distress is usually running out of cash – you just don’t have any money left. However, even though it seems obvious, running out of cash is almost always a symptom and not a cause of business failure. In this article, I outline a few warning signs that financial trouble is nearby (or that’s it has already started). I’ll start by identifying a few telling symptoms, and eventually go down to the typical root causes of financial distress. The key, like any illness, is to catch the symptoms early, so that you can begin to identify the causes.

1) You’re struggling to be profitable.
2) Your margins are slipping (gross or net).
3) Your sales are stagnant or decreasing.
4) Your rate of sales growth is declining
5) You are profitable, but do not have positive cash flow from operations.
6) Renewal sales, inbound leads, or other metrics related to market acceptance are flat-lining
7) Your employee turnover is getting higher.
8) The product or service you offer is decreasing in quality.
9) Your office/workspace/headquarters looks messy.

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Malaysia’s ambitions under the Economic Transformation Programme to produce 60,000 accountants by 2020 will require a concerted effort from the accountancy profession

The government and stakeholders in the profession acknowledge that accountancy is one of the key areas where the country is significantly under-served, and the public and private sectors need to ensure that the demand driven by Malaysia’s steady and strong economic growth is met. There are obviously some major challenges that may be obstacles to achieving the government’s target. The main challenge faced in Malaysia is similar to that found in many other markets. It’s to persuade young people that the accountancy profession is an attractive option offering excellent career opportunities, financial rewards and opportunities for personal development.

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Business entities registered in Malaysia will now have a new registration number format when they register with the Companies Commission of Malaysia (SSM). Beginning January 2019, these new registration numbers for business will contain 12 digit characters which are designed to help facilitate data management.

This new format adopted by SSM is similar to the ongoing practice in Singapore carried out by the Accounting and Corporate Regulatory Authority (ACRA). In the new format, the first 4-digits represent the year of incorporation, which makes it easier for local tax authorities to determine if the business entity is still qualified for the first 3-year tax exemption.

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