Latest news with #SpecialEconomicZone
Business Recorder
a day ago
- Business
- Business Recorder
FBR chief urges Senate body to abolish 7th Schedule of ITO, bring banks into normal tax regime applicable to companies
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, Thursday, strongly recommended Senate Standing Committee on Finance to abolish Seventh Schedule (Banking Schedule) of the Income Tax Ordinance 2001 and bring banks into normal tax regime applicable to companies. The FBR chairman expressed serious concern over special tax treatment to the banking companies. 'Banking Schedule must be abolished from the income tax law', Rashid Mahmood said. He stated that the banks should be treated like any other company. 'Why the banks be given totally different tax treatment as compared to other registered companies', the FBR chairman questioned. 'Tax laws cannot be dictated to the government by any particular sector', the FBR chairman criticised. In 2007, this schedule was inserted in the Income Tax Ordinance 2001, which needs to be deleted, the FBR chairman said. Langrial stated that the banks are engaged in business and why we are applying different tax laws on banks. Seventh Schedule (Banking Schedule) of the Income Tax Ordinance should not remain part of the tax law and it should be abolished from the Income Tax Ordinance. Banks should not be given different tax treatment, the FBR chairman said. While review of the Finance Bill (2025-26) on Thursday, the taxation issue of banking sector was discussed in detail at the Senate Standing Committee on Finance and Revenue, under the chairmanship of Senator Saleem Mandviwalla. FBR Member Inland Revenue (Operations) Hamid Atiq Sarver was specially invited to explain banking related amendments in the Finance Bill (2025-26). When Mandviwalla asked the Securities and Exchange Commission of Pakistan (SECP) chairman about the legal status of banks, Akif Saeed informed the committee that the banks are registered like any other company. The FBR Member Inland Revenue (Operations) explained in detail all legal and technical amendments relating to the banking schedule of the Income Tax Ordinance 2001. Later, amendments were approved by the committee. Chairman of the committee Saleem Mandviwalla questioned the performance of the anomaly committees constituted by the FBR. The FBR has formed two anomaly committees to identify and remove the technical and legal anomalies in the Finance Bill 2025. Mandviwalla stated that the anomaly committees have failed to address the issues raised by the business community. The anomaly committees do not rectify errors in tax laws. The FBR chairman responded that this year we are bound due to IMF programme. The chairman of the committee also recommended deletion of Special Economic Zone (SEZ) Act, keeping in view government policy for not granting or extending tax exemptions. Some SEZs are fully operational and some are partially working. What is the fate of the SEZ after withdrawal of tax exemptions, he raised question. The government should terminate SEZ Act as it has become redundant in the absence of new tax exemptions. The FBR is not giving new exemptions and it would create problems for the new SEZs. Therefore, the law should be abolished. The government should refrain from giving fresh approvals to the SEZs, he added. On the proposal of the FBR for three years limit on audit of a taxpayer, Mandviwalla noted with concern that it is a general practice of the FBR to conduct multiple audits of taxpayers even in cases where simple explanation is required. A school of Islamabad has been audited by the FBR for the last three years, he added. Copyright Business Recorder, 2025
Barnama
a day ago
- Automotive
- Barnama
Japan Backs Johor's Push To Become ASEAN Urban Mobility Model
JOHOR BAHRU, June 19 (Bernama) -- Japan has pledged continued support for Johor's transformation into an ASEAN benchmark for urban mobility by promoting smart transit solutions and cutting-edge transportation technologies. Japanese Ambassador to Malaysia Noriyuki Shikata said the initiative aligns with Johor's rapid economic growth, particularly fuelled by the Johor-Singapore Special Economic Zone (JS-SEZ), which is set to position the state as a key regional economic hub. He said the forthcoming Rapid Transit System, Johor Bahru-Singapore Rapid Transit System (RTS), expected to be completed by late 2026, along with the proposed Elevated Autonomous Rapid Transit System (E-ART), are key to improving public transportation in Johor. bootstrap slideshow By utilising Japan's AI-powered traffic control systems and digitally optimised public transportation networks, Johor could significantly reduce traffic congestion and emerge as a transportation model not just for Malaysia, but for the entire ASEAN region, he said at the Nikkei Forum Medini Johor 2025 here Thursday. Co-organised by Iskandar Investment Bhd and Japan's Nikkei Inc, the two-day Nikkei Forum Medini Johor 2025 is hosted by the Johor state government with support from the Johor Economic Planning Division, Invest Johor, and the Iskandar Puteri City Council. He highlighted the strategic potential of the Port of Tanjung Pelepas and Johor Port, both of which are well-positioned to grow as competitive regional logistics hubs and play a larger role in international trade. He said Japanese stakeholders are eager to collaborate on enhancing operational efficiency and vessel traffic management at the Port of Tanjung Pelepas and Johor Port, aiming to strengthen Johor's role in international trade, generate quality employment, and significantly contribute to regional economic growth. As Johor continues to emerge as a key destination for data centres, Shikata underscored the significant environmental challenge posed by the high energy demand for cooling, noting that Japan's LNG-based cooling technology offers an environmentally friendly and efficient cooling solution. 'By adopting this technology, the data centres in Johor would significantly improve energy efficiency while reducing their environmental impacts as well as improving operational efficiency,' he said.
Nikkei Asia
2 days ago
- Business
- Nikkei Asia
Malaysia's Anwar pitches joint economic zone with Singapore
ISKANDAR PUTERI, Malaysia -- Prime Minister Anwar Ibrahim on Thursday vowed Malaysia would consider feedback from foreign investors as it develops a special economic zone with Singapore that it hopes will boost the nation's status as a regional business center. Speaking at the two-day Nikkei Forum Medini, Johor 2025 -- held in the southernmost Malaysian state, where the Johor-Singapore Special Economic Zone is being developed -- Anwar pitched the key project, touting it as an opportunity for overseas investors.
New Straits Times
2 days ago
- Business
- New Straits Times
Anwar: Foreign policy must prioritise national interest, not foreign pressure
ISKANDAR PUTERI: Malaysia has always prioritised national interest in its foreign policy and will not be dictated by external powers, said Prime Minister Datuk Seri Anwar Ibrahim. Speaking at the closing ceremony of the two-day Nikkei Forum Medini Johor at Sunway BigBox today, Anwar said the country's approach to international engagement must be guided by its own needs and remain free from any interference. "Our relationship with the United States must remain strong. "But no one can dictate that we be too friendly to the US, China, or Japan. "We are an open trading country, and our policies must reflect the best interests of our people," he said. Anwar, who is also finance minister, reaffirmed Malaysia's commitment to a principled and multilateral trade approach, noting that while the US remains the country's largest export destination, Malaysia will not condone unilateral tariff actions. "Malaysia will continue strengthening relations with Asean countries, China, Japan, Korea, and other regional allies," he said. He noted that 60 per cent of Malaysia's exports currently go to the US, making it the country's top trading partner. However, he stressed that the government draws a firm line when it comes to policy. "We do not endorse or support any unilateral action. Despite our close ties, Malaysia does not condone the imposition of tariffs," he said. Malaysia, he added, will continue to engage with China, South Korea, Japan, and other Asean allies to defend a rules-based multilateral trading order. Anwar also said that the Johor-Singapore Special Economic Zone (JS-SEZ) as a regional game changer that has drawn strong interest from investors in Japan, China, South Korea, and the European Union. He described the zone as "a collaboration between two countries based on total trust". "The zone is quickly becoming an international investment magnet due to its strategic infrastructure, political stability, and clarity of policy," he said. Touching on global trends, Anwar criticised the rise of protectionism, saying many decisions today are driven by political and economic arrogance. "Decisions today are often made based on greed and military might, not values, ethics, or justice," he said, urging governments to centre governance and trade on ethics and human values. He also reaffirmed Malaysia's strong ties with China, pointing to back-to-back visits from President Xi Jinping and Premier Li Qiang as evidence of strong bilateral confidence. "Few countries can boast of that kind of access. "China has been consistent in offering investment, technological transfer, and trade cooperation, much like Japan has done for decades," he said. Citing Malaysia's industrial master plan, energy transition roadmap and digital ambitions, Anwar said what sets the country apart is its resolve to act with urgency and reform. In a rare moment of reflection, he acknowledged past weaknesses in governance and pledged his administration's commitment to clean and effective leadership. "I assure you, my Cabinet has the humility to accept criticism and make necessary adjustments. We are not living in a perfect world," he said.
Business Times
2 days ago
- Business
- Business Times
Malaysia hopes to draw back talent to power JS-SEZ
[SINGAPORE] Malaysia hopes to draw back some of the hundreds of thousands of Malaysians who cross the causeways daily, by tapping them to power the Johor-Singapore Special Economic Zone (JS-SEZ), said panellists on Wednesday (Jun 18). However, Idzham Mohd Hashim, president and chief executive officer of Iskandar Investment (IIB), stressed that this was not about competing with Singapore, but about creating a 'symbiotic relationship' that benefits both countries. He was speaking on a panel titled 'Johor Focus: Building the Future with JS-SEZ', alongside Mohd Noorazam Osman, CEO of the Iskandar Regional Development Authority (IRDA) and former mayor of Johor Bahru. The discussion was part of the Nikkei Forum held in Medini, Johor, and moderated by the Japanese news organisation's senior producer Kaori Takahashi. IIB is leading the infrastructure development in the JS-SEZ, while IRDA oversees planning and coordination. The agreement to establish the SEZ was signed by Singapore and Malaysia in January with the aim of having both countries work together to attract new investment projects from around the world. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The SEZ covers an area of more than 3,500 sq km, roughly four times the size of Singapore. Idzham said that while the zone's infrastructure – including roads, power supply, and fibre optic networks – is already in place, what is still missing is the 'software'. 'Most of the businesses who come here… they ask: 'Do you have (the) talents?'' said Idzham. 'We do have (the) talents, because 300,000 of them go to Singapore every day.' Both Idzham and Noorazam pointed to plus points in Johor that could woo back these residents, such as more industry-relevant training, increased job opportunities through business expansion, and the lower cost of living in the state. For instance, Noorazam said the Johor Talent Development Council is working with academic and vocational institutions, as well as industry players, to ensure that training matches demand. While he did not go into detail, he added there are also plans to offer tax incentives and to work towards a minimum starting salary of RM4,000 (S$1,210) for graduates in Johor. He added that investors should see the lower wage expectations – at around 50 to 75 per cent of Singapore's salary levels – as part of the SEZ's broader cost advantage. In a separate panel discussion at the forum titled 'Building Digital Nations: Innovation, Inclusion and Impact' – which mostly focused on retaining talent in Johor – Johor Corp's chief talent officer Najmie Noordin acknowledged that it will be an uphill task to bring Malaysians working across the border back home. He noted that it would be difficult to convince Johoreans earning the equivalent of RM15,000 in Singapore to return for just RM5,000. Moderator Brian Fernandez, CEO of BizTech Asia, pointed out that many of these Johoreans – 'the cream of the crop' – work in the Republic purely for the higher pay. However, he added, many would also be willing to stay if salaries were even half of those in the city-state, especially given the daily grind of commuting. In any case, Najmie noted that one plan is to develop more high-quality local talent and encourage them to stay, as well as attract workers from other parts of Malaysia, such as Melaka. Responding to the discussion, Fadzli Abdul Wahit, head of digital transformation at Malaysia Digital Economy Corporation, said that efforts to retain talent must also focus on understanding industry demand. Rather than compete directly with advanced economies, Malaysia should identify niche opportunities, such as supplying digital assets to mature gaming and animation markets such as Japan and South Korea, where such content is in short supply, he added. Even so, panellists discussing the JS-SEZ maintained that Johor's cost and location advantages make it a compelling base for companies looking to scale up. Idzham noted that the cost of doing business in Johor is nearly 60 per cent lower than in Singapore, and about 30 per cent lower than in Kuala Lumpur – a key advantage for companies looking to expand across the border to grow their businesses. As for what Singapore brings to the table, Noorazam highlighted its global networks and financial strength. He added that Johor's vast land availability, affordability and talent pool make it a natural partner. In response to Takahashi on how the JS-SEZ would shape Johor's future as an innovation hub, Idzham said that the master plan for Medini is focused on business tourism, research and development (R&D), and environmental, social and governance-led urban development. The plan includes a new convention city near Legoland, a tech zone for R&D, and a net-zero carbon business district, with support from universities, the government and industry players. 'We should look at both Johor and Singapore as one growth area,' noted Noorazam. 'The JS-SEZ… can become the gateway to Asean, a market of 700 million people.'
