Just barely 3 months after the Malaysia Government imposed a windfall profit levy on Malaysia's Independent Power Producers (IPP), the Government has reversed gear again. Perhaps realizing the damage done in the previous policy, the windfall profit levy has been scrapped going forward. However, the one-time payment is still in force.
Recall that after the imposition of the tax levy, the decision had been severely criticised and Malaysia's bond market had been severely bashed, due to the power sector being the largest issuer of bond fund in the country. In addition, sourcing for new bond funds had been made extremely difficult recently due to the downward rating of Malaysia's bond market.
The latest twist has a negative effect on Malaysia's national utility company, Tenaga Nasional Bhd, as it has to continue bearing the increase in energy costs in the country. Moreover, the expected power reform between Tenaga and IPPs have thrown into more uncertainties. As it stands, the share price of Tenaga has corrected by almost 9% today in the KL Stock Market. However, this should be a positive rerating move for the Malaysia bond market.
The Government is expected to release its master energy blueprint this year to further reform the energy sector in this long power saga.
Friday, September 12, 2008
The Power Saga Continues
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2 comments:
Hi PS Thoo, just stumbled across your blog. Very political and frustrated with taxes I see. And who isn't.
You might want to start looking at what are considered tax havens around SEA or even that Asia Pacific region.
Sometimes only minimal investments are required in those areas of the world.
Anothertip is to provide multiple layers of protection with the use of corporations in the country you operate in.
In time, you'll simply surprise yourself how much you can actually accumulate while protecting yourself from those nasty law suit people who only do it out of spite.
Start researching these 2 strategies and you'll find a very different lifestyle, I promise.
Hi Stephen,
Thanks for visiting!
It appears you have some potentially good suggestions in mind. Care to elaborate further in more specific?
Look forward to hearing from you soon.
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