It was announced by the Prime Minister Datuk Seri Abdullah Ahmad Badawi in his Budget Speech on 7th September 2007 recently that corporate tax would be further reduced to 25% for 2009 from 28% in 2006, 27% in 2007 and 26% in 2008. The purpose of this exercise was to enhance the country’s economic competitiveness and to spur the growth of private investments. In addition, the government would implement a single-tier tax system, effective from year of assessment 2008 in which c