Evaluation of the 1988 Malaysian tax reform proposals: A general equilibrium approach

In the Malaysian 1988 tax reform proposals, recommendations were put forward to reduce taxes on corporations by an effective rate of 10%, to introduce Value Added Tax system, to implement some short term measures such as the blanket increase in the Sales tax rates by 5%, to reduce export tax and to broaden the tax base on import tax. These proposals has been evaluated and counter proposed by the author. A general equilibrium approach was adopted to evaluate the proposal. The model used was static in nature and only produced a marginal impact due to restructured tax instruments. Some extrapolation on the result was necessary to enable data to be used for a specific evaluation. An actual benchmark data set was constructed based on data available from Malaysian Statistics, except in certain areas where actual figures were not available. Sensitivity analysis was performed on these assumed parameters to gauge the sensitivity of the result. The work performed here would make a significant contribution to the economic forecasting work in Malaysia, as it paves the way for a general equilibrium theory in the area of tax reform. It would also permit more extensive research to be carried out using such a model especially in the annual budget exercise of the Treasury Department. The study shows that Corporate Tax is one of the most efficient and productive tax instruments in the economy. Its tax burden distribution has also been found to be quite positive. It has therefore been ascertained that reducing the tax would be unjustifiable unless a better tax instrument was created. The author's (counter) proposal to reduce Payroll Tax rate by 5% was found to be more viable as Payroll tax was found to be inefficient and unproductive. This counter proposal would also achieve the objective of reducing the cost of doing business in Malaysia and at the same time improve the overall tax burden distribution. The existing imputation tax system was found to still be the most efficient and productive mechanism for Malaysia. The proposal to introduce the Value-Added tax system is optimally desirable judging from the three main criteria of efficiency, equity, and tax revenue productivity. The claim that the tax system would create some inflationary impact was also proven to be ill founded; provided the tax rate structure is not altered. In other words, an effort to make the rate structure uniform should occur in stages. In analysing the various feasible types of VAT system, the consumption type was the most efficient, tax productive as well as equitable. The author's proposal to increase tax rates on Clothing and Footwear and Manufacturing durables was also found more viable, as these two intruments are quite outstanding, compared to others in the system. A counter suggestion to abolish the export tax altogether is also sensible if the tax revenue loss was recouped by raising the rate on the producers tax. This is optimal, and hence desirable, since a producers tax has been observed to be much more efficient and productive than the export tax. It had however been qualified that the counter proposal will only be viable when a separate channel of marketing could be created for small scale producers in an effort to exempt them from paying the tax. Finally, it is also desirable to exclude imported manufacturing durables from the import tax base judging from the efficiency, tax productivity as well as equity objectives of tax reform. The sensitivity analysis on the income elasticity and the substitution elasticity of the household sector had been carried out to prove the moderate nature of the result obtained in the tax reform analysis

Challenges in Malaysian tax system and administration

It is indeed an honour to have been invited to this national seminar on taxation to present my thought to such distinguished and prominent audience.I wish to record my sincere gratitude to the organizing committee for choosing me to present the theme paper of this seminar on Challenges in the Tax System. The challenge to me rather is how to lift up to the expectation of the organiser and the fellow audience.I have kept the subject matters in my mind for months to hibernite hoping that it will generate some fresh ideas so I could share them with all of you.But the ideas had never hatch.Finally I decided that I will just explore the subject with an open mind by broadening the scope as far as possible to invite all of you the distinguished audience here to join me in my journey into the Future World of Taxation -from my wildest dream. Hence, though the seminar brochure emphasised the ' Era of Self Assessment',I have taken the liberty to journey further to the long future perhaps surpassing the 2020 target year for Malaysia to be a developed nation.Instead of presenting challenges in the form of 'mechanical problems' I have taken the liberty to discuss the pertinent issues and explore the various alternative route to journey, to overcome the challenges and to build a model of tax system that fit the anticipated environment.I have also gone beyond the normal scope by exploring the area of Public Finance to relate to some pertinent points in the discussion.Please pardon me if this does not meet your expectation.An academia always treasure an opportunity to share his dream with others and I am not about to let this golden opportunities passed by

Factors Affecting the Internet Islamic Banking Adoption in Jordan: A Conceptual Research Model

Objective: The purpose of this study is to conceptually review the determinants of Internet Islamic Banking Services adoption.In addition, it presents a conceptual research model to understand these relationships supported by literature review from recent studies.Methodology: A critical literature review had been conducted in the area of internet banking services adoption model, Islamic banking and UTAUT theory and application. Results: The main findings indicate that familiarity, social influence, needs, customer background and IT support affect adoption of internet banking services.In addition familiarity, social influence, needs, customer background and IT support affect adoption of Islamic internet banking services .Therefore we can conclude that factors of internet banking services affect Islamic internet banking services.Implication: This research presents a conceptually yet empirically supported model to describe the factors influencing internet banking services and internet Islamic banking services.This research will be significant in several areas, by adding new knowledge for the academics, practitioners and organizations in general and particularly in Jordan

Nexus between Accounting Information and Stock Market Return: The Mediating Effect of Board Size of Listed Non-Financial Entities in Ghana

The study examined the association between accounting information and stock market return with board size as a mediating effect of listed non-financial entities in Ghana. The population of the study was 27 listed non-financial entities from 2007-2019 with 251 firm-year observations. This study applied a panel regression model that takes unobserved individual heterogeneity and distributional heterogeneity into consideration. In addition, the study employed cross-section dependence test; Levin-Lin-Chu, ImPesaran, Pesaran, Kao and Larsson cointegration test; fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS); and Panel Dumitrescu and Hurlin heterogeneous panel granger causality test. The results of unit root test showed that all the variables are integrated at first. Moreover, the results of cointegration test revealed that accounting information variables were cointegrated in the long run. The result of FMOLS and DOLS further revealed that all the accounting information variables with the exception of OCFPS have a direct insignificant relationship with the stock market return of listed non-financial entities. The study revealed that board size strenghthens the association between OCFPS, EPS and PER, and stock market return at 5% significant level under FMOLS of listed non-financial entities. The pairewise granger causality test highlighted bidirectional causal relationship between the accounting information variables and stock market return listed non-financial entities. Keywords: Accounting Information, Corporate Governance, Stock Market Return, Board Size DOI: 10.7176/RJFA/13-22-02 Publication date: November 30th 202

Corporate Failure in the Banking Sector: The Role of External Auditors

The aim of the study was to establish the role of external auditors in corporate failure in the banking sector. The study discovered that the auditing gaps within banks are tangibility and empathy services. It was also revealed that remuneration, training of external auditors, lot of variety in their job, level of logistics, loyalty rate of external auditors, motivational package and improved salary and opinion counts in the organisation were the factors influencing the effectiveness of external auditors. Lastly, unethical behavior has a positive relationship with corporate failure which was statistically significant at confident interval of 0.05 with a predictive power of 83.7 percent chance of predicting corporate failure which was moderate. It was recommended that the Bank should take steps to train and promote external auditors towards acquiring the necessary skills and experience to commission the corporate failure audit. Additionally, assistance also could be sought from other Supreme Audit Institutions in other countries with a similar government arrangement. Alternatively, assistance from private audit firms that have developed expertise in the public sector audit can be sought to assist them to make the audit function more meaningful and constructive. This will help fill the empathic gap of clients. With the current trend towards the harmonization of auditing standards and guidelines, further research into the usefulness and adequacy of auditing standards and guidelines is worthwhile. Keywords: Corporate failure, auditing, corporate corruption, assurance, effectiveness DOI: 10.7176/RJFA/11-4-03 Publication date: February 29th 202

Investigating the parameters influencing Islamic banks financial performance: evidence from five Southeast Asian countries

View expanded cover International Conference on Business and Technology ICBT 2021: Innovation of Businesses, and Digitalization during Covid-19 Pandemic pp 29–50Cite as Investigating the Parameters Influencing Islamic Banks Financial Performance: Evidence from Five Southeast Asian Countries Fahd Al-Shaghdari, Tahani Ali Hakami, Barjoyai Bardai & Abdulmajid Obaid Hasan Saleh Conference paper First Online: 08 July 2022 7 Accesses Part of the Lecture Notes in Networks and Systems book series (LNNS,volume 488) Abstract This paper investigated the parameters that influence Islamic Banks’ financial performance in Malaysia, Indonesia, Thailand, Brunei, and Singapore. The past decades have witnessed the positive expansion of Islamic banking in Southeast Asia but a discernible drop in their profitability and assets growth may denote poor performance. This requires investigation. This quantitative study examined the factors that may influence Islamic banks’ financial performance, and found Assets Quality, Liquidity, Debt Funding and Equity funding as the significant parameters in determining Islamic banks’ financial performance among the countries examined. Also, GDP Growth Rate and interest rate were the only external parameters with positive influence on Islamic banks’ financial performance. Notably, Inflation and Tax rate were not significant in determining Islamic Banks’ financial performance. Accordingly, management should strengthen the practices and implementations of the profit loss sharing (PLS) based instruments among the examined Islamic banks. Hence, disparities could be decreased while the economic opportunities could be improved, particularly those that could greatly contribute to the capital build-up and the creation of economic growth

Framework of affordable cooperative housing through an innovative waqf-based source of finance in Karachi

Purpose – The purpose of this research is to introduce an innovative framework called the waqf cooperative housing framework (WCHF), with an objective to create a synergistic equilibrium between waqf and cooperative housing schemes. To tackle problems related to the dearth of financing, this research postulates an innovative waqfbased source of finance that involves generating revenue from common areas (waqf area) within the vicinity of the condominium. Design/methodology/approach – Primary data were collected through interviews and the data were analysed using the NVIVO software. The interviewees comprised managers from property development sectors, public sector officials, university lecturers in Islamic finance, CEOs, top management officials from Islamic financial institutions, community leaders and shariah scholars. Findings – A framework was proposed based on the result of the interviews. It was found that innovative models such as WCHF can resolve the issue of affordable housing in Karachi such as decreasing the financial burden on the public exchequer, bringing positive change to the lives of the poor, fulfilling the property developer’s corporate social responsibility, fulfilling the religious duty of the general public and condominium owners towards their fellow beings as well as creating new employment opportunities for people who are working in the financial sector (waqf management companies/trustees) and the construction sector. Research limitations/implications – Even though this study has introduced an innovative and practical solution to the financing of affordable housing, it also encountered some limitations. First, it is conducted in Karachi city involving six group of respondents; thus, the findings cannot be generalised with other contexts. Similar research needs to be conducted in different contexts. Originality/value – To date, this is among the first studies, to the best of the authors’ knowledge, to investigate cooperative affordable housing with the help of innovative Islamic finance tools in the context of Pakistan. Furthermore, insufficient attention has been given to the enabling and hindering factors behind the acceptance of a framework that seeks to initiate a cooperative scheme based on an innovative waqf financing tool that generates revenue from common areas around a condominium

Pengajian umum dan keperluan sektor swasta

Falsafah pengajian umum di universiti menekankan pendekatan yang cuba untuk mengintegrasi dan merangkumkan ilmu dan pengetahuan pelajar yang selama ini telah di petak-petakan di dalam disiplin pendidikan mengikut jurusan masing-masing. Usaha mengintegrasikan ilmu ini adalah amat penting untuk membawa semula bakal siswazah ke alam nyata di mana tidak ada batas disiplin dan ilmu wujud. Sebelum siswazah ini keluar dan terdedah kepada dunia nyata yang akan dirasai berkecamuk disebabkan rojakan ilmu, mereka perlu diorentasikan semua dan didedahkan dengan hakikat bahawa mereka perlu mengintegrasikan ilmu mereka dengan ilmu lain bagi menjadikannya kelihatan lengkap dan kemas. Dua cara untuk mengintegrasikan ilmu ini ialah melalui kaedah berfikir dan disiplin hidup. Kaedah berfikir yang selama ini disogokkan kepada pelajar yang berteraskan ‘lojik kaku’ adalah tidak sesuai dan amat janggal di dalam dunia nyata. la menjadikan para siswazah kaku pada peringkat awal kerjaya mereka di dalam menyesuaikan diri dengan persekitaran baru. Pemikiran kreatif perlu diterapkan dalam minda setiap pelajar sebagai penggenap kepada pemikiran lojik yang sudah cukup kukuh untuk membolehkan mereka bersikap dan berfikiran lebih ‘fleksibal’ dan bertoleransi. Ini akan menjadi asas terhadap sikap positif dan berwawasan yang amat diperlukan oleh setiap siswazah. Pemikiran kreatif juga merupakan asas yang amat penting di dalam ‘K-Economy’ di mana ‘idea’ dan ‘harta intelektual’ menjadi fokus kekayaan. ‘Disiplin hidup’ berbeza dengan ‘disiplin pengajian’. Berdasarkan 'disiplin pengajian’, seseorang itu akan menjurus dalam satu cabang ilmu yang khusus dengan matlamat untuk mendalami ilmu yang tertentu. Manakala ‘disiplin hidup’ pula, seseorang itu akan menyediakan diri untuk melengkapkan ilmu bagi membolehkan mereka hidup dengan cukup berkesan. Disiplin hidup pada masa lepas dikaitkan dengan profesyen yang tertentu seperti doktor, peguam, akauntan, jurutera, arkitek dan sebagainya. Disiplin hidup sebegini didapati masih terlalu terkongkong sehingga menjadikan ahli profesional terus melihat dunia melalui teropong profesyennya sahaja tanpa memikirkan profesyen yang lain. Disiplin hidup baru yang dilihat lebih menyeluruh ialah disiplin ‘keusahawanan’. Walaupun pada masa lepas usahawan ditakrifkan hanya sebagai peniaga, namun definasi ini telah berkembang. Kini usahawan didefinasikan oleh Dr. Peter Drucker contohnya sebagai ‘sesiapa sahaja yang berjaya mewujudkan nilai tambah ke dalam ekonomi’. Ini menjadikan setiap insan sebagai potensi usahawan. Jika dikaitkan dengan Islam, kita percaya bahawa setiap kita dilahirkan ke dunia sebagai khalifah dan pemegang amanah. Tugas kita ialah untuk membuat sumbangan dengan mewujudkan nilai tambah kepada ummah. Ini menjadikan setiap kita sebagai usahawan. Sekiranya ikhlas melaksanakan tugas sebagai khalifah dan pemegang amanah serta menganggap ia sebagai penyerahan kepada Allah s.w.t. semata-mata, secara tidak tangsung kita bergelar ‘usahawan mujahid’. Sektor swasta memerlukan bakal tenaga kerja yang berfikiran luas, terbuka dan menyeluruh. Bakal tenaga kerja di abad 21 perlulah seorang yang lengkap bukan sahaja dari segi kepakaran tetapi juga dari segi sikap dan pemikiran. Mereka perlulah menjadi sumber bukan sahaja untuk tenaga kerja dan kepakaran tetap, juga idea dan harta intetektual yang akan menjadi sumber kekayaan penting perniagaan di abad baru ini. Pastinya jika Program Pengajian Umum dapat melengkapkan bakal graduan dengan sikap dan asas pemikiran yang dibentangkan di atas, mereka dengan mudah akan dapat menepati keperluan industri dan bakal majikan mereka