That's not a good reason, in my opinion. For KWSP, the government could always include an exception in the tax laws for it. After all, income derived from government issued securities are already tax exempt. For the reason of encouraging investment, arguably the Malaysian economy at the current stage already over-invests and under-consumes. A lack of capital gains tax only exacerbates this. However, my primary reason for strongly supporting a capital gains tax is still that a tax system without it is strongly regressive and hence unjust. It constantly amazes me that poor Malaysians will demand stuff like fuel subsidies, price controls and minimum wages while ignoring the far greater injustice in the lack of capital gains taxes.

Joking aside, it doesn't exclusive to older people. Young people also can have passive income source through dividend. 

Actually if younger people know how to have a strategy to have passive income + core income (your core work), then one's wealth can be built more faster and exponantially. 

some of the dividend is exclude the tax, because will paid by company...
example: tier interm dividend.

cherroy,

Sorry for my previous reply. Didn't mean that it's exclusively for old people. Heck, I'm still young, but I am also starting to build up my passive income

What I meant was that dividend play is more relevant for retirees who want to receive passive income. For younger people, it is wiser to invest in compounding instruments for better exponential growth

i got another question for all pros here...

is there something to do with the par value of the company with the dividend given??

eg. a 7% DY from a RM 1.00 stock means that i will be getting RM0.07 per stock rite??

its the same with the announcement of a dividend of RM 0.07 from a RM 1.00 stock??

does the par value affect any of these dividend pay out??

cherroy,

this means the par value wont affect the dividend in cents (we will get 7 cents per share for either par value stated at 1.00 or 0.5)??

but

it will affect the DY in percentage as u explained....

Bursa really need to get rid of this Par value difference and make all stocks standard RM0.10 par value.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Turnover  1,964.0   1,947.0   2,036.0   2,772.0   3,010.0   3,073.0   3,199.0   3,236.7   3,564.2   3,612.5   3,830.0   4,135.0
Profit  483.0   629.0   380.0   506.0   607.7   662.9   758.2   782.1   592.8   719.7   731.0   811.0
EPS  169.0   220.0   133.0   177.2   212.8   232.2   265.5   273.9   207.6   252.0   256.3   284.3
Net DPS  154.0   155.0   100.8   170.0   245.4   216.0   310.0   248.4   250.1   254.0   256.5   265.0

10 years (1999 - 2008) total Dividend received = RM23.16
12 years (1997 - 2008) total Dividend received = RM26.25

My remisier told me that the stock price of a company on the ex-date (ex dividend date) will be adjusted accordingly based on the dividend given out. So if the dividend is RM0.07 and the stock price BEFORE the ex-date is RM0.80, then the stock price (opening price presumably) on ex-date will be RM0.73.
Any advice is most appreciated. Thanks.