Malaysian Regulators Steadily Stepping Up Their Controls

This week I  had an interview with the International Adviser on GST and Malaysia constant battle with regulation. As you guys know, one of my main aims over the last few years has been increasing the regulation in Malaysia for which Life Broker companies operate. It has been a slow process but we are getting there and the market has definitely improved over the last few years.

Arrival of Malaysian GST looms over KL financial market

Here is an extract from the interview.

Arrival of Malaysian GST looms over KL financial market

Malaysia is stepping up its regulation of financial advisers in line with changes sweeping many major markets worldwide, however it is the imminent arrival of a new goods and services tax (GST) that is likely to have the most immediate impact, according to industry experts.

On 1 April this year, Malaysia will replace the existing Sales and Services Tax with a new 6% GST, which will have a narrower and more specific list of exemptions for financial services than its nearby neighbour Singapore, according to a review by KPMG.
 
“In Singapore, financial services may be treated as zero-rated supplies if they are supplied to non-residents,” KPMG said. However, it said the transfer of securities or units in unit trusts traded in Malaysia, or insurance contracts relating to risks in Malaysia, may not escape the tax, even if supplied to an offshore person.
 
“We have had numerous meetings and seminars with regards to GST and thankfully it seems that the life brokers are zero rated; however I am uncertain what this means for life companies who are currently regulated under the LFSA (Labuan Financial Services Authority),” said Stuart Yeomans, chief executive of Farringdon Group, a Kuala Lumpur-based financial advisory firm. Zero-Rated Supply means goods and services sold by a company are free from GST.
 
Meanwhile Malaysian regulators are steadily stepping up their controls over financial advisers in a bid to raise standards and improve the quality of the market, and these are beginning to make life harder for small brokers, though they have yet to go as far as Singapore. 
 
“Regulation is slowly stepping up. The barriers to entry are getting a lot higher,” Yeomans said.
Thanks International Adviser for another good interview, I look forward to the next. For the full article, please visit http://www.international-adviser.com/news/asia/arrival-of-malysian-gst-looms-over-kl-market

I hope that you have enjoyed reading this post.

For other IA posts that include Stuart Yeomans, please go to http://www.international-adviser.com/news/asia/labuan-in-move-to-be-a-top-intl-insurance 

Stuart Yeomans

CEO

Farringdon Group

Kuala Lumpur : Malaysia

   

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