dollar since 1983, came under speculative pressure because Hong Kong's inflation rate had been significantly higher than the United States' for years. Monetary authorities spent more than $1 billion to defend the local currency. Since Hong Kong had more than $80 billion in foreign reserves, which is equivalent to 700% of its M1 money supply and 45% of its M3 money supply, the Hong Kong Monetary Authority (effectively the city's central bank) managed to maintain the peg. Stock markets became more and more volatile; between 20 and 23 October the Hang Seng Index dropped 23%. The Hong Kong Monetary Authority (HKMA) then promised to protect the currency.
Threat of substitute Poh Kong company can make an advertisement to mention about the benefit of buy its goods like the value of gold is hard to decrease in future time and having a higher value compare to sliver. Although it value is lower then diamond, but it is more cheaper. Also, the advantage of golds is can be manufactured into more design and shape, so Poh Kong can hire some professional designer to draft a creative products to differentiate from other competitors. Usually, follow by the Chinese traditional, those people will buy golds as their dowry, so the company may come out a special promotion to attract its customers. For example, they can choose some products such as necklace, ring and earring and make it into a set and using lower cost provider method to gain customers’ interest.
BNM also announced that the ringgit depreciated against most of the currencies of Malaysia’s trading partners to amid news of growing inflation. The cause of depreciation of ringgit was blamed on the anticipation of the scale-back of US Federal Reserve’s programs to support the US economy. However, outlook of the national economy still consider positive. According to the Star, Alliance Research chief economist Manokaran Mottain expects inflation rate in Malaysia to average 3.2% and peak at 3.8% in August. However, he also expects the national economy to see a 5% year-on-year growth next year, an improvement from the estimated 4.6% growth estimated in 2013.
In 2009, the GST bill was tabled for reading at Dewan Rakyat. It was further deferred again for it defectiveness and lack of laws and regulation on implementing it. Finally on 2013, after the 13th General Election, the Prime Minister Datuk Seri Najib Razak declares GST of 6% in Malaysia effectively commence from 1st April 2015. Please refer to Diagram
Value of currency is unpredictable and cannot control by the company. When Ringgit Malaysia appreciates, this make our exports less competitive as compared with other countries that export palm oil such as Indonesia. This is because the cost of import is higher, so the demand and price of Crude Palm Oil will fall. However, when the value of Ringgit Malaysia depreciates, our product will be more attractive to the foreign
A country can attract foreign direct investment by devaluing the currency because foreign direct investment will benefit from the weakness of the currency of the host country. The depreciation of the national currency against the Malaysian Ringgit foreign investors will increase foreign direct investment inflows. The exchange rate is one of the most important factors that affect trade between the countries. If the exchange rate rises, banks are relatively more favorable to the exporter, the exporter will be aware to changes in exchange rates. Statutory corporate tax rate is used as a proxy for the effects of fiscal policy to all new investors, ignoring tax holidays, accelerated depreciation and other incentives that reduce the effects of the statutory rate.
Although the desirability of the reform is not in doubt, however making a transition to GST involves considerable work as well as formidable challenges for the Government. In India, it is leviable by both central and state governments unlike in many other countries where GST is a centralized tax which implies that both the structure and administration of the levy will have to emerge after detailed negotiations and bargaining between the centre, the 29 states as well as the two Union Territories with legislatures. The interests of the states do not always coincide and considerable effort is needed to persuade them to adopt a uniform or a broadly harmonized structure and administrative system for the tax given the sharp differences in the structure of the economy and sales tax revenue across the
Mahathir Mohamad decided to peg the Malaysia Ringgit (MYR) with the US Dollar (USD) at an exchange rate of RM3.8 for a US Dollar, Malaysia is still trying to improve the economy at that time. This makes our former prime minister to think out of the box by trying to implement the usage of gold dinar system as a standard unit of currency for trade and financial transaction. The usage of gold dinar system also can escalate the purchasing power in the country. As we know gold also have their own drawback as it fluctuates in cost yet not as fiat money. But we have to know that gold is incompatible to use for daily exchanges in the local market.
Topic 2 The tourism industry constitutes a major economic sector for Hong Kong. The multicultural society, the modern lifestyle, and the impressive beauty of the countryside attract millions of tourists from around the world every year. However, recently there have been major problems such as dependent on mainland visitors, attraction of Hong Kong tourism, strong emphasis on expanding tourism, unfair treatment of visitors, with the tourist industry in Hong Kong. If action is not taken, an economic crisis may occur as the tourism industry may not support sufficiently for Hong Kong’s economy. This essay will examine the issue of tourism industry problems and suggest some solutions that overcome these crises.
All the prices on their menu and promotional materials are inclusive of GST. Their costs have not increased as the price consumer pay for all their menu items stays the same, even after GST. This is because the GST is replacing the 6% Government Sales Tax while all prices and charges for dine-in are subject to 10% service charge still continue to apply in. Pizza Hut will be issuing a tax receipt or tax invoice to customers’ purchases below RM500 in a single transaction. For purchases exceeding RM500 in a single transaction, they will issue a full tax invoice only upon customer’s request and require the customer’s name and address to be printed on the full tax invoice.