20100224 0924 Malaysian Economic News.

Malaysia and Germany signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (DTA). The Ministry of Finance said the agreement would provide for the avoidance of the incidence of double taxation on income such as business profits, dividends, interests and royalties derived in Malaysia and remitted to Germany or vice versa. It said with the agreement would replace the previous DTA Malaysia and Germany signed on Apr 8, 1977. (Bernama)

The special laboratory set up to find solutions on issues concerning foreign nationals would focus on four main areas – entry procedure, legalisation, monitoring and enforcement system. Home Minister Datuk Seri Hishammuddin said the lab could function as an important platform to discuss issues and make recommendations to fine-tune the responsibilities of each ministry and government agency in a systematic and effective manner.

• “Among the lab’s focus will be to study the entry procedure of foreign nationals by taking into consideration the real needs of an industry and its effect on the country’s economy and security,” he said. (The Star)

The government hopes to increase the ratio of domestic investments to foreign direct investments (FDIs) to 60:40 by 2020 with improved business environment, investment policies and other incentives in the country.

• The current ratio of domestic investment to FDIs stood at 32:68. International Trade and Industry (Miti) Minister Datuk Seri Mustapa Mohamed said given the uphill challenges in the economic recovery globally, FDIs have been in on the decline. 
• It is therefore important to raise domestic investments to stimulate the domestic economy. The 60:40 ratio is in line with the Third Industrial Masterplan (IMP3), which spans over a 15-year period starting from 2006.
• Miti, in its effort to boost domestic private investment, will meet Bank Negara to discuss problems faced by small and medium-scale enterprises (SMEs) in securing financing from banks. Easy and speedy financing approval remained a concern among SMEs. (Bernama, StarBiz, FinancialDaily)