MONEY MASTER

Malaysian Prime Minister Najib Razak has targeted budget spending at his coalition’s most loyal voters, seeking to limit any damage from more than a year of political turmoil as talk turns to a potential early election. Najib Razak chases 'ultimate' win as supporters get budget goodies The premier allocated more funds for his cash handout program to the poorest 40 percent of Malaysians, promised civil servants a bonus and introduced extra assistance for farmers. He pledged more roads, bridges and better electricity and water supply for rural regions, and sought to woo younger voters with discounts on outstanding student loans and access to cheap housing in urban areas. After weathering funding scandals and attempts to topple him for a good part of his second term as premier, Najib must balance a slowing economy with keeping voters happy ahead of an election that could come as soon as March. While the opposition is fractured, it has sought to lure ethnic Malays from Na...

Goldman Sachs Group Inc is being accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak at a time when the bank has already been under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd (1MDB). Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion in May 2011. Goldman used EON’s confidential information to help the bank buy EON on the cheap knowing that Najib’s brother served as a board member and another brother chaired the investment firm advising the bank, Primus Pacific Partners 1 LP said in the complaint. (Source: Bloomberg) Spokesman for Goldman said lawsuit as "misguided" Primus Pacific, EON’s biggest shareholder after buying a stake of more than 20 percent in 2008, unsuccessfully sued twice to block the sale, arguing that Hong Leong’s takeover price ...

Putrajaya seems to be eager to show to the citizens that they are serious about cost cutting.  The Malaysian government unveiled 53 measures to cut cost. 53 cost cutting measures Some of it are the freeze on hiring of new staff, stricter controls on overtimes, curbs on various expenses and a minimum 30% cut in spending on all government-organised events. The measures which took effect on March 1st includes a directive to all agencies to cut down the number of uniforms issued to officers from three sets per year to two. The measures are listed in a Treasury Circular titled "Guidelines on Measures to Optimise Govern­ment Spending" which was uploaded on the Finance Ministry website. The full list of measures can be accessed online at the ministry's website at http://1pp.treasury.gov.my/makluman/pindaan/217 The circular ordered all ministry secretaries-general, department heads, heads of statutory bodies, chief executives of companies limited by guaran...

Yak Yew Chee, a senior banker at Swiss-based BSI Singapore , has emerged for the first time as a key figure in Singapore's money laundering probe, according to documents released at Singapore High Court last week . According to Reuters report, Yak was not personally at the Singapore High Court on Friday, when he sought to unfreeze his Singapore funds to pay taxes and legal fees. His lawyer agreed to withdraw the petition after the prosecutor raised no objection in allowing Yak to transfer S$1.76 million (US$1.3 million) from his overseas bank accounts. In an affidavit filed at the court, he denied any wrongdoing or getting unlawful benefits from managing the accounts of 1MDB or its affiliates. Singapore authorities are conducting a money laundering probe into bank accounts linked to 1MDB, whose activities have triggered legal action across three continents. Some of the accounts Singapore is probing belong to Yak and have been frozen together with S$9.7 million of his f...

Switzerland's top prosecutor said $4 billion may have been misappropriated from state-owned companies in Malaysia. $4 billion may have been misappropriated from state-owned companies in Malaysia “We are very concerned,” Swiss Attorney General Michael Lauber told The Wall Street Journal on Friday. “ We have found evidence of suspicious money transfers linked to 1MDB going through Swiss financial institutions, and we believe that it is very important that it is shared with the Malaysian authorities.” The investigation revealed indications that funds have been misappropriated and said it was looking into four cases of potential criminal conduct. It said some of the funds had been transferred to Swiss accounts held by former Malaysian public officials and current and former officials from the United Arab Emirates. The comments represent the most detailed allegations yet of wrongdoing around 1MDB. The fund, set up by Malaysian Prime Minister Najib Razak in 2009 to help str...

KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak tabled Budget 2016 in the Dewan Rakyat on Friday. Najib, who is also Finance Minister, said the theme of the 2016 Budget is “Prospering the Rakyat”. The following are the highlights of his speech: * RM267.2bil has been allocated under Budget 2016, compared with the revised RM260.7bil in 2015. * There will be nine high-impact domestic projects worth RM6.7bil in total. * The first priority of Budget 2016 is to spur domestic investment to contribute 26.7% to the GDP in 2016. * The Budget aims to increase private investment to RM218.6bil and public investment to RM112.2mil. * The GST sum is to be credited into value of prepaid reloads from Jan 1 next year. * Personal income tax pushed to 26% from 25% for those earning between RM600,000 to RM1mil. Income tax is also pushed up to 28pc from 25% for those earning RM1mil and above. * RM900mil is proposed for the Jalan Tun Razak Traffic Dispersal Project to reduce congesti...

BUDGET 2016: NAJIB ALLOCATES RM267.2 BILLION Budget 2016 was tabled by Prime Minister Datuk Seri Najib Razak last Friday, with the theme "Prospering the Rakyat", allocating RM267.2 billion compared with the revised RM260.7 billion in 2015.  BUDGET 2016 Among his measures to boost revenue was to raise taxes on the country’s richest individuals. Those earning RM600,000 to RM1 million annually will be taxed at 26% from 25% now, while those earning more than RM1 million a year will pay a rate of 28%. In its 2015/2015 economic report, the government forecast that GDP would grow 4% to 5% in 2016, from 4.5% to 5.5% this year. It sees the fiscal deficit narrowing to 3.1% of GDP in 2016 from a revised 3.2% this year. WCT GETS TRX CONTRACT, BUYS TRX LAND   1MDB is on the spotlight again, as 1MDB Real Estate Sdn Bhd has awarded WCT Holdings Bhd a RM754.8 million contract to build infrastructure and roadway works for the Tun Razak Exchange (TRX). WCT’s indirect unit, WCT Pr...

KHIR TOYO SENTENCED TO A YEAR'S JAIL The sentence has been delivered. Former Selangor Menteri Besar Dr Mohamad Khir Toyo was sentenced to a 12 months' jail for abusing his power while in office to purchase two plots of land ad a bungalow in 2007. Federal Court Judge Tan Sri Zulkefli Ahmad Makinudin who delivered the verdict, also upheld the decision of the lower court to forfeit the properties.  Khir Toyo sentenced to a year's jail A five-member panel led by Chief Justice Zulkefli Ahmad Makinuddin made the ruling together with Justices Jeffrey Tan Kok Wha, Datuk Ramly Ali, Tan Sri Hasan Lah and Tan Sri Ahmad Maarop. The court has also rejected his mitigation to offer free dental services to the poor for three days weekly between one and two years as part of community service in default of jail, as it would not be appropriate. Khir Toyo began his jail term in Kajang Prison on September 29. Zeti: Malaysia bond market will not collapse ZETI: MALAYSI...