Good morning everyone and welcome to our complimentary Strategic Tax Initiatives Post COVID-19 Webinar.
From engaging with our members and from weathering the same crisis, MIA appreciates that the COVID-19 economic stasis during the MCO was very difficult and the repercussions continue to take a toll. Media globally are even referring to lockdowns and the subsequent crises as the COVID-19 coma.
The not so good news is that for 2020, this COVID-19 induced crisis is projected to plunge the world into recession. Just a week ago, the World Bank in its June 2020 Global Economic Prospects envisioned a 5.2 percent contraction in global GDP in 2020. Earlier in April, Bank Negara Malaysia (BNM) announced that the country’s GDP growth is projected at between -2.0 to +0.5% in 2020.
However, looking on the upside, due to swift action by Governments around the world in pumping in liquidity and providing safety nets for workers and businesses – a rebound is expected in 2021 with positive GDP growth albeit from 2020’s low baseline.
Of course, there are downside risks and the outlook is still very uncertain and volatile, so forecasts are fluid. As leaders in our own organisations, we need to ensure that we are agile and adaptable. We need to work on scenario planning and map out our options in order to act swiftly and decisively in response to emerging risks. And we need to make sure that our staff are well-briefed and calm them so that we can continue to work productively towards our long-term purpose.
Here in Malaysia, we are very fortunate that the Government did not only take action to reduce infection risks and cases, but it opened the spigots to fund stimulus and safety nets.
The Government is also moving to resuscitate the economy in the short-term before heading into the structural reform phase for more sustainable development. Recently, under the recovery phase, the Government introduced the PENJANA short-term economic recovery package, which features 40 initiatives, inclusive of 22 strategic tax initiatives already taken or to be taken in the post-MCO period.
MIA is delighted that the Government incorporated several of our proposals into the PENJANA package – on continuing wage subsidies, training and upskilling, as well as incentives for new investment, digitalisation and remote work, and to spur consumption and mergers and acquisitions (M&A).
Today, our expert speakers will be discussing the economic outlook as well as strategic tax initiatives needed for managing the post-COVID-19 pandemic environment and the challenges in compliance, due to rapid changes in tax laws and regulations as the Government pivots from controls to controlled recovery.
Thank you to Dr Veerinderjeet Singh, Chairman of MIA Tax Practice Committee & Non-Executive Chairman of Tricor Malaysia; Ms Fung Mei Lin, Tax Partner, PwC Malaysia; and En Arief Putera Mohd Sharipudin, General Manager of Tax Division (Group) of QSR Group of companies for joining us today. Essentially, we will be getting macroeconomic, practitioner and commercial perspectives which will be highly useful in helping tax practitioners navigate the COVID-19 new normal.
I hope that this webinar will help you to effectively adapt and integrate your tax strategies and compliance practices into the bigger picture of business continuity and value creation for your organisations, in the longer term.
Do have a productive session and thank you once again for joining us.
Unit 33-01, Level 33, Tower A, The Vertical, Avenue 3, Bangsar South City,
No.8 Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia.
The use of the word ‘Accountant’
In Malaysia, the word ‘Accountant’ is protected as provided for under the provisions of the Accountants Act 1967 which states that no one can hold himself out or practise as an Accountant unless he is registered as a member of the Malaysian Institute of Accountants.
‘The Malaysian Institute of Accountants is committed to the observance and practice of the highest ethical standards of the accountancy profession. All PC holders are reminded that under the MIA By-Laws (On Professional Ethics, Conduct And Practice), no person shall practice or hold out anything on audit/tax services without a license approved by the Ministry of Finance. Every PC holder is therefore expected to comply fully with Section B200.1 to B200.6 of the MIA By-Laws (On Professional Ethics, Conduct And Practice) failing which, you may be held liable for unprofessional conduct and disciplinary action may be taken against you.’