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ISSUE THE NEWS THAT STANDS FOR REAL VALUES AND GIVE YOU REAL VALUE FOR 05 DECEMBER YOUR MONEY 2020 In This Issue MEOA calls for unfair taxes on palm oil to be suspended or abolished P.1 MIDF Research maintains 2020 GDP forecast at -4.8 pct P.2 Eligible members can apply for i-Sinar beginning mid-December — EPF P.3 Steam Turbine with Alternator P.4 MEOA calls for unfair taxes on palm oil to be suspended or abolished KUALA LUMPUR (Dec 1): The Malaysian Estate Owners' Association (MEOA) is calling for taxes it deems to be unfair levied on the oil palm industry to be suspended or abolished. In a statement, the MEOA specifically pointed to the windfall profit levy (WPL) on crude palm oil (CPO), Sabah's 7.5% sales tax on CPO and Sarawa'sk 5% sales tax on sales of CPO and crude palm kernel oil (CPKO). According to the association, these taxes collectively amounted to an estimated RM1.3 billion in 2019 when CPO prices averaged at RM2,079 per tonne. Based on 2019’s production figures and assuming CPO prices are sustained at RM3,200 a tonne, the MEOA expects these taxes to result in proceeds of RM2.8 billion a year. Citing Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz’s comments that the imposition of a windfall profit levy on glove manufacturers would make investors think twice before investing in the country, the association asked whether this policy thinking would be expanded to the palm oil industry when it comes to the WPL. “It should be pointed out that no oil palm planter would be rejoicing at today’s palm oil prices, given the cumulative effect of relentless cost increases over the years. "Today’s derived margin set against many years of unabated production cost increases is certainly not windfall profits (sic). The oil palm industry is a long- haul business, and growers need to recoup and reinvest for the industry to be competitive and remain sustainable,” it noted. The WPL is imposed in Peninsular Malaysia whenever CPO prices exceed RM2,500 per tonne, and in Sabah and Sarawak when CPO prices exceed RM3,000 per tonne. The MEOA is estimating RM760 million a year to be collected at a price assumption of RM3,200 a tonne. It noted that even the Malaysian Palm Oil Board's (MPOB) estimate of RM500 million from the WPL in 2021 would exceed the RM400 million donated by several glove manufacturers to the government’s Covid-19 Fund. In Sarawak, it noted that sales taxes on CPO and CPKO amounted to RM520 million in 2019. The MEAO said the taxes levied on revenue, rather than profits, are a heavy burden on the sustainability of oil palm operations (especially when CPO prices are low) and Sarawak planters as many were late starters vis-à-vis Peninsular Malaysia or Sabah planters in oil palm cultivation. For 2019, the MEOA estimated that RM520 million were collected, representing 34% of the estimated economic profitability of plantation operations. “The MEOA implores the Sabah state government to consider the possibility of reducing or abolishing the 7.5% CPO sales tax, which amounted to an estimated RM791 million in 2019. As this is a tax on revenue rather than profits, the MEOA calculated that this amounted to an outsize 44% of economic profits in 2019 when CPO prices were low,” it added. –The edge ISO 9001 CERTIFIED COMPANY KHOSHEE AUCTIONEERS SDN BHD Page 1 Free pneumococcal vaccination for MIDF Research maintains 2020 GDP forecast at -4.8 children at health clinics starts today pct KUALA LUMPUR, Dec 1 -- MIDF Research is maintaining its forecast for Malaysia’s Gross Domestic Product (GDP) performance at -4.8 per cent in 2020. In a note today, the research house said the economy was set to continue improving, based on current RAUB (Dec 1): The free pneumococcal developments and indicators. vaccination under the National Immunisation Programme for children begins “However, we expect it to be on a gradual term as the sentiments are still weak due to the resurgence simultaneously today at the Ministry of Health (MoH) health clinics nationwide, and will of the COVID-19 cases in the country and also globally, with other downside risks emerging such as benefit 500,000 children each year. the political situation, rising protectionism and geopolitical tensions,” it said. Minister Datuk Seri Dr Adham Baba said Domestically, the rise in COVID-19 cases had pushed most of the states into a Conditional Movement children born on or after Jan 1, 2020, are eligible for the pneumococcal conjugate Control Order (CMCO), it added. vaccine (PCV), which would be given in three doses — two primary doses at the age of four “While we view the current CMCO to be less stringent than what we had previously estimated and that months and six months, and a PCV booster at most of the economic activities are allowed to continue operating according to the standard operating 15 months. procedures, it will still have some impact on the strength of domestic demand due to physical However, the pneumococcal immunisation movement restrictions. schedule would be adjusted for children whose vaccinations have been delayed by the “In other words, we recognise that the major impact of the CMCO on the economy is mainly from Covid-19 pandemic this year. weaker consumer spending and its spillover effects on the services industry, particularly consumer- related sub-sectors such as retail trade, restaurants, hotels, travel, education, and recreation “The administration of the pneumococcal vaccine is the most effective method to services,” it said. prevent pneumococcal bacterial infection and indirectly reduce the resistance to antibiotics. MIDF Research said while international borders remain closed, the support coming from domestic This vaccine is also safe and effective. tourism activities will be curtailed to some extent following the CMCO. “The vaccination is vital and quite timely after the number of cases of children with the “Nevertheless, we believe the risk to consumption will be somehow cushioned by the growing online pneumococcal disease increased from purchases facilitated by the availability of e-commerce platforms, home delivery services, and online 17,446 in 2017 to 19,773 last year," he said financial services such as e-wallet and online banking. after launching the National Pneumococcal Immunisation Programme for Children at a health clinic here, today. “In addition, stimulus packages announced on top of the cumulative 125 basis point cut in the overnight policy rate will continue providing support to the recovery,” it said. Also present were MoH disease control director Datuk Dr Norhayati Rusli, state Works, Transportation and Health committee The research house said while rising COVID-19 cases remained a major concern, the planned fiscal chairman Datuk Seri Norol Azali Sulaiman spending as outlined in Budget 2021 would provide more support to revitalise Malaysia’s economy and Pahang health director Datuk Dr Bahari from the negative effects of the global pandemic. Che Awang Ngah. The vaccine is intended to prevent bacterial “Furthermore, further recovery in both domestic and external demand will be key factors for sustained recovery going into 2021,” it added. infections of Streptococcus pneumoniae or pneumococcus, which can cause diseases such as pneumonia, sinusitis, middle ear -- BERNAMA infection (otitis media), meningitis and bacterial infections in the blood (septicemia). “Complications of pneumococcal disease include hearing impairment, brain deformity and death. Children aged five and below are the most at risk of becoming infected and experiencing complications of this disease. Apart from reducing the rate of morbidity and mortality due to related diseases, the vaccination can also reduce treatment costs,” he said. Dr Adham also said the MoH always ensures that the vaccine used is effective and safe, but parents are urged to report the side effects of the vaccine, if any, to health personnel or through the website at npra.gov.my. MoH will also deploy the Orang Asli mobile team, mobile bus services, mobile boats and air doctor services to administer the vaccination to children in the rural areas, he added. –The Edge ISO 9001 CERTIFIED COMPANY KHOSHEE AUCTIONEERS SDN BHD Page 2 Eligible members can apply for i-Sinar beginning mid- EPF: Employees' 2021 December — EPF statutory contribution rate reduced to 9% from 11% KUALA LUMPUR (Nov 26): The Employees Provident Fund (EPF) will be announcing the details of the expanded i- Sinar facility, which will include members whose incomes are affected by pay cuts, next week. "The fund anticipates that eligible members who meet the criteria can begin applying for i-Sinar from mid-December 2020, with the first pay out beginning a month after their application is approved. "i-Sinar will be complementing other assistance programmes provided by the government as well as other EPF offerings during this pandemic, such as the reduction of employee statutory contribution rate, the i-Lestari withdrawal facility, as well as the Employer COVID-19 Assistance Programme (e-CAP)," EPF said in the statement. EPF said in a statement today that the expansion will cover the eligibility criteria of members who suffered significant impact to their incomes which include loss of employment or reduction of pay. KUALA LUMPUR (Nov 28): Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz told the Dewan Rakyat during the Budget 2021 debate The Employees Provident today that the Government will expand the i-Sinar facility to include all who have had their income affected due to the Fund (EPF) said today Covid-19 outbreak. employees’ 2021 share of the statutory contribution rate will Zafrul said that the Government has taken note of complaints regarding the i-Sinar facility, under which eligible contributors are allowed to take advances from their Account 1 as announced on Nov 6.

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