Qtr 3 GDP and 2012 BUDGET

Qtr 3 GDP 2011

BNM announced a convincing 5.8% GDP for 3Qtr 2011. 2nd Qtr 2011 GDP was revised to 4.3%. I am certain Malaysia could attain at least 5% GDP for 2011.

BUDGET 2012

PM Najib unveiled the 2012 budget on October 7th.  Honestly I was surprised with the bigger allocation but I have confidence in PM Najib. Obviously with a bigger allocation corporate or individual taxes could not be reduced. But I am concern with the increasing government debts although it is still managable. Since Malaysia is set to become a developed nation in 2020, I am not concern with the reduced FDI. A developed nation will invest its resources internally while excess profits will be chanelled overseas to create more wealth.

As with other Malaysians we know the government still has no guts to implement VAT. I doubt whether the opposition would implement it either should they win Putrajaya in the 13th general election. GST or Harmonized tax (Canada) if implemented is a recipe for disaster for any  government. Observe the defeat of the Liberals in Canadian election in the mid 1990s.

With regard to the RM429.1 Billion International Reserve, I think the government must set a limit to its reserve. Too much reserve is also a recipe for disaster. Its like our credit card limits. At CAD 500 it is managable but when it is increased to CAD 1000, it is the act to hang our own neck.
             Assets=Liabilities + Equities

Maybe it is time to merge the conventional tax and zakat into one system of taxes. I.e. for any Muslim who paid the zakat pendapatan (income tax) certain rebate would be given to his conventional individual taxes.
BECAUSE
taxes is like 'kaduk' leaves in Laksa, one of the famous Malay dish. There won't be any laksa unless there is 'Kaduk' leaves.