You already know how I feel about WoW in general; however, there's no denying this latest expansion is the most ambitious one yet. It completely guts the original game and quite literally changes everything. Well, almost everything. It's still WoW, but it's the best version of WoW so far. Photo by GameSpot
GEORGE TOWN: The Federal Government wants to make Penang the preferred economic hub in the region.
Prime Minister Datuk Seri Najib Razak said several development projects and strategies had been designed to stimulate the economy and provide jobs.
“Ten major infrastructure projects have been identified, including the expansion of the Penang International Airport, Penang Port, upgrading of Penang Bridge, construction of the second bridge, and the creation of a Multimedia Super Corridor in Penang.
“These initiatives will not only facilitate economic activity but also support our national objective to increase tourism revenue from RM53bil last year to RM168bil by 2020.
“I believe Penang has unique advantages for it to become a hub for the Northern Corridor Economic Region (NCER) and Growth Triangle comprising Indonesia, Malaysia and Thailand,” he said in his speech at the groundbreaking ceremony for the airport’s RM250mil expansion project.
The project, expected to be completed by June 2012, is under the NCER blueprint launched two years ago. Najib said Penang already had the highest economic density and the shortest distance to the market for a city in the Growth Triangle, adding that the airport’s expansion would further enhance the island’s infrastructure and transport connectivity.
He said it was also heartening to see the benefits of the Government’s stimulus package firsthand because the project would increase passenger capacity, improve facilities and strengthen security.
Funding for the project came under the RM6bil economic stimulus package, which was introduced to stave off the effects of the global financial crisis.
Najib said equipping terminals with modern public facilities and delivering high-level customer service were key to portraying a favourable image of the country to travellers.
Transport Minister Datuk Seri Kong Cho Ha said between January and November, the number of passengers at the aiport had increased by more than 26% to 3.7mil.
“Compared to last year, cargo traffic has risen by 12%,” he said.
GEORGE TOWN (Dec 20, 2010): The federal government is allocating funds for Penang to help make the state a regional economic hub which would benefit the country as a whole, Prime Minister Datuk Seri Najib Abdul Razak said.
Citing the RM250 million upgrading project for the Penang International Airport as an example, Najib said the federal authorities were setting aside money from a "national perspective" and in line with plans to develop the Northern Corridor Economic Region (NCER).
Najib with Malaysia Airports managing director Tan SriBashir Ahmad (2nd from right) and Koh looking at the model of Bayan Lepas International Airport.
"The federal government’s goal for Penang is to make it the preferred hub in the region," he said. "Ten major infrastructure projects have been identified, including expansions of the airport, Penang Port and Penang Bridge; construction of a second bridge; and the creation of a Multimedia Super Corridor in Penang. "These initiatives will not only facilitate economic activity, but also support our national objective to increase tourism revenue from RM53 billion in 2009 to RM168 billion by 2020," Najib said in his speech while officiating at the ground-breaking of the airport’s passenger terminal expansion here. Also present were Transport Minister Datuk Seri Kong Cho Ha, Chief Minister Lim Guan Eng, as well as Ministers in the PM’s Department Tan Sri Dr Koh Tsu Koon and Tan Sri Nor Mohamad Yakcop. Funding for the project came from the government’s RM6 billion economic stimulus package. "This RM250 million investment in the airport’s expansion will increase passenger capacity, improve facilities and strengthen security," Najib said.
"It will also enhance the airport’s ambience, providing a higher comfort level to airlines and passengers alike, and offering a better selection of retail outlets," he added.
Najib noted that the stimulus package offered many benefits to the aviation sector, including two years of landing rebates for airlines to support their business recovery, restore confidence and increase the rate of air traffic into Malaysian airports.
Najib said he also anticipated the need to upgrade the airport’s cargo terminal to serve increased industrial activity here.
He noted that the airport now handles more than 30% of Malaysia’s manufacturing exports and is the second busiest entry point for international visitors to the country.
Stressing that investing in infrastructure was a key pillar to sustaining Malaysia’s economic growth in the long term, he said: "I am confident that the airport’s upgrading will allow Penang to further develop in economic growth."
IF you own a property that you rent out, you should know that besides the prospect for ongoing income and capital appreciation, such investments offer deductions which can reduce the income tax on your profits.
However, what type of property investor are you? If you have been actively looking for housing properties to purchase and selling them at a profit, you may not be a passive investor. It is likely that you could be regarded as a property dealer or trader.
The profits derived by a property trader are taxed as income from a business whereas that derived by passive investor is treated as a capital gain and will be subject to a 5% real property gains tax if the property was held for less that five years. If held longer, there will be no tax.
The law to determine whether you are a property trader is imprecise and the outcome can depend on a subjective evaluation of the relevant facts.
For example, does it mean that if you have sold a property within a two-year period, you will be a property dealer? Not necessarily, since it depends on your intention when you acquired that property and the reason why you sold it.
The sale of a second property will reduce the strength of a claim that you are not a property dealer but again, there may be reasons to enable you to argue otherwise.
Rent received in advance The money that you receive for rent is generally considered taxable in the year you receive it, even when it is not due or earned. You should therefore include advance payments of rent as income even though they are not due.
Tenant-paid expenses Expenses paid by your tenant are considered income to you. This would include, say, an emergency repair to an air conditioner while you are out of town. You can then deduct the repair payment as a rental expense.
Trade for services Your tenant might offer his services in exchange for rent. You must include as income a fair market value of his services.
For example, if your tenant, an accountant, agrees to help you prepare your accounts in exchange for two months rent, you must include the two months rent as income even though you did not actually receive the money.
Security deposits Such deposits are not taxable on you when you receive them if the intent is to refund the money to the tenant at the end of the lease. If the tenant breaches his lease terms, then you are entitled to use the deposit to make good any defects in the property and return the balance to the tenant.
You must include the amount used to repair the defect as income and at the same time claim the amount spent as a deductible expense.
Repairs and improvements Owners of rental properties should not assume that anything done on the property is a tax-deductible expense. The tax law looks at it quite differently.
A repair keeps your rental property in good condition and is therefore deductible in the year you incur the expense.
Improvements, on the other hand, will add value to your property and the costs are not deductible. Improvements could include a new patio, a garage or a new roof.
From a tax standpoint, you should carry out repairs as the need arises rather than wait until the problem becomes such as to require extensive renovations where elements of improvements would invariably be present. If you bought a dilapidated property and immediately incurred repair expenses on it, these “initial” repairs are not deductible, being of a capital nature.
Mortgage and other expenses Expenses incurred to obtain a mortgage are not deductible. These could be appraisal fees, commissions or legal fees.
When you start making your mortgage payments, the amounts paid relating to your rental property will only be deductible to the extent of the interest portion. This would be ascertainable from the annual statement, which your bank will send you. You will also be able to deduct the cost of insurance on the rental property as well as assessments and quit rent.
Rental as a business The Inland Revenue Board (IRB), in its public ruling, states that “Where in conjunction with the letting of a property, a person also provides ancillary or support services/facilities, the letting can be considered a business source of income ” The consequence is that you are entitled to claim “capital allowances” on any plant and machinery used in the business of letting.
These could include air conditioners, refrigerators as well as furniture and fittings. Should the tax-deductible expenses in any one year exceed the rental income, then the excess being a business loss can be carried forward.
Keep good records The IRB can be reasonable (based on the law) in deciding on the items you can deduct but you need to show them that you have adequate records of the expenses. Always be prepared to back up your claims.
Kang Beng Hoe is an executive director of Taxand Malaysia Sdn Bhd, a member of the Taxand organisation of independent tax firms worldwide. The views expressed do not necessarily represent those of the firm. Readers should seek specific professional advice before acting on the views.
