Asian Financial Services Association

1

Bus.Permit Issued By

:

Central Bank (For leasing business, no permit is required. Only registration with Central Bank is required), Others (Money lending license is issued by The Ministry of Housing and local government

2

Business Requirement

*

Bus.Requirement Percentage (%) of Foreign Ownership Allowed

:

< 50% (In General)

*

Bus. Requirement Minimum Capital Requirements

:

-

*

Bus. Requirement Number Of Active Companies in Operation

:

15

*

Bus. Requirement New Business Permit

:

Allowed

3

Bus. Activities Include

:

Leasing, Factoring, Consumer Financing, Factoring, Credit Cards, Others (Money lending)

4

Products Financed

:

Automotives (4 wheelers, Trucks, Transportation Vehicle (buses), Heavy Equipment, Machineries, Electronic Devices (computer, air conditioning), Others (Medical & photographic equipment, garage equipment, office furniture & fittings and equipment.

5

Source Of Funds

:

Banks (on-shore & off-shore), Capital Market / Bonds, Others: Loans from Life Assurance Companies

6

Loans

:

Source of loans - Domestic (Provided by private sector), Off shore

7

Accounting Treatment

*

Allowance for Bad-Debt & Write-Offs(%)

:

General provision for doubtful debts of 1% to 2%

*

Tax Deductible

:

Specific provision for bad debt is tax deductible. None

8

Taxes

*

Corporate Tax rate Regulation (%)

:

28%

*

Withholding Tax Regulation (%)

:

10 - 15%

*

VAT Regulation (%)

:

Nil

*

Sales & Leaseback Regulation / Vat Implemented or not

:

Nil

9

Legal Aspects

:

-

10

Reporting Mechanism-Supervision

:

Ministry of Trade (Hire Purchase Financing is governed by Hire Purchase Act 1967 and is supervised by Ministry of Domestic Trade and Consumer Affairs), Central Bank (The Banking and Financial Institutes Act 1989 empowers Central Bank to supervise leasing companies, which have to comply with the said Act by registration with Central Bank, Others (Money lending business is supervised by the Ministry of Housing and local government and is governed by the Money Lenders Act 1951).

11

Constraints In Operation

:

Matching of funding and lending tenure

12

Opportunites in Business

:

Yes, depending on credit risk appetite and acceptable margins

13

Miscellaneous

:

-