REIT

Benefit of investing in REIT from tax point of view:

1. REIT is exempted from Malaysian Corporate Tax, if the REIT distribute more than 90% of its income






2. As an individual - Malaysian Resident only subject to 10% witholding tax.


Hence, currently NR still subjected to high tax of 25%. Major beneficiaries are local. Should the preferential tax rate is given to foreigner, Malaysian REIT will be boost.  

Balance of Payment

Balance of Payment = Current accounts + Capital Accounts

Current Accounts =  (X-M) + NY + NCT
X & M  = Net import/export of goods and services
NY = Net income from abroad
NCT = Net current transfer

Capital Accounts = changes of foreign ownership of domestic assets +changes of domestic ownership of foreign assets

Capital Accounts = FDI + Portfolio Investment + Other Investment + Reserve Accounts

Source: Wikipedia.

SUNREIT

Foreign fund is selling, May b we should buy. But will foreign fund return?

KLCI @ 31 July 2013

Fitch Downgraded of Malaysia outlook from stable to negative. More foreign funds are pulling out. A break out in dollar will leads to short term weakness in KLCI.