Malaysia to delay new taxes as manufacturers fear tariff hit
The planned widening of the tax base, originally due on May 1, will be implemented at a later date, a spokesperson from the Ministry of Finance said in a text message, confirming a report by The Edge Malaysia.
Malaysian manufacturers have been urging the government to refrain from introducing additional tax burdens this year after the US threatened a 24 per cent tariff on the South-east Asian country. The sector, a major contributor to the nation's tax revenue, is under severe cost pressure, Soh Thian Lai, president of the Federation of Malaysian Manufacturers, said earlier this month.
Officials are seeking to negotiate a deal with Washington within the 90-day pause on the higher tariffs mandated by US President Donald Trump, who has in the meantime imposed a 10 per cent levy on goods from Malaysia and many other trading partners.
The government is currently reviewing its official growth projection of 4.5 to 5.5 per cent for 2025, with the US levies causing uncertainty for investment and trade.
The finance ministry's engagements with industries across the country to finalise the scope of the expansion and the applicable tax rates have been completed, the spokesperson said. The guidelines and scope are being refined to ensure smooth implementation, they said.
The tax changes will be gazetted on Jun 1, Anis Rizana Mohd Zainudin, director general of the Royal Malaysian Customs Department, responsible for the execution and enforcement of the sales and service tax, was quoted as saying by The Edge Malaysia. It was originally scheduled for the first quarter.
Prime Minister Anwar Ibrahim said in October, when he unveiled the nation's budget, that the sales and service tax will apply to non-essential items, including premium imported goods such as salmon and avocado. It will also be widened to cover commercial services. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 minutes ago
- Straits Times
Trump plans executive order on flag burning, NewsNation reports
Sign up now: Get ST's newsletters delivered to your inbox The Justice Department would review cases involving flag burning to see if charges could be brought that weren't specific to the flag burning itself. WASHINGTON – US President Donald Trump plans to issue an executive order on flag burning, NewsNation reported, a move that aims to crack down on burning the American flag without running afoul of a 1989 Supreme Court decision that ruled doing so was protected speech. Under the order, set to be signed on Aug 21, the Justice Department would review cases involving flag burning to see if charges could be brought that weren't specific to the flag burning itself, such as public nuisance or disorderly conduct laws, NewsNation said citing two unnamed administration officials. Mr Trump has long sought to impose penalties for flag burning, floating punishments including a prison sentence or a loss of citizenship after winning his first presidential election. He highlighted the issue repeatedly during his last presidential campaign, and in 2024 suggested he could seek a constitutional amendment to ban that form of protest. He reiterated his call to impose penalties in June while speaking at Fort Bragg in North Carolina, saying that he was working with senators to pass a law giving jail time to flag-burning protesters and suggesting a yearlong sentence. 'People that burn the American flag should go to jail for one year. And we'll see if we can get that done,' Mr Trump said. Days later, Senator Josh Hawley, a Missouri Republican, introduced legislation that sought to add an additional year in jail to federal sentences for crimes that involved flag burning. Top stories Swipe. Select. Stay informed. World Israel says it has taken first steps of military operation in Gaza City Singapore 3 Sengkang Green Primary pupils suspended for bullying classmate, with 1 of them caned: MOE Singapore 18 persons nabbed and 82 vapes seized in HSA ops in Raffles Place and Haji Lane Business Chinese brands like Pop Mart, BYD, Joocyee expanding into S'pore as gateway to Asean market Life Why should we bear the burden of budget meals and app discounts, some S'pore hawkers ask Singapore Religion growing in importance for Singaporeans: IPS study Asia 'Disastrous, useless': New Zealand to overhaul high school qualification to lift falling standards World Google unveils latest Pixel 10 phones packed with AI The US Constitution broadly protects speech and peaceful protest, and courts have long held that political speech is among the most sacrosanct forms of speech. The US Supreme Court in 1989 ruled in a 5-4 decision that burning a flag itself is a form of political expression protected under the First Amendment and cannot be made illegal. Congress then passed a new law banning flag burning, which was also overturned in a subsequent Supreme Court case. Efforts to amend the Constitution to prohibit flag burning have fallen short of the two-thirds majority needed in both chambers of Congress. Republican Senate Leader Mitch McConnell of Kentucky provided the crucial vote to stop a 2006 attempt in his chamber. Flag desecration emerged as a political issue amid the convulsions of the 1960s after some Vietnam War opponents began burning flags as a form of protest. In the decades that followed, punishment of flag burning became a cultural flash point in tensions over deference to patriotic norms versus protection of the right to expression. The issue again resurfaced in recent years when flags were burned at pro-Palestinian protests and demonstrations against federal immigration enforcement efforts. During the last presidential campaign, demonstrators burned a flag at Washington's Union Station to protest Israeli Prime Minister Benjamin Netanyahu's address to Congress – drawing condemnation from both Mr Trump and Democrat Kamala Harris. BLOOMBERG
Business Times
2 hours ago
- Business Times
Chinese carriers claim jets from elusive Airbus mega-order
[HONG KONG] China's biggest airlines have started dividing up a 500-plane mega-order for Airbus jets from a deal that Beijing is still looking for an opportune time to announce, months after it came together, sources familiar with the matter said. China Southern Airlines, Air China and China Eastern Airlines each plan to claim about 100 aircraft, said the sources, who asked not to be identified discussing details that are private. Smaller carriers Xiamen Air and Sichuan Airlines Group are targeting agreements closer to 35, one of the sources said. The order, reported on by Bloomberg News in June, would be among the largest ever for Chinese airlines, which typically order in bulk through the government. It was originally expected to be announced in early July during the China–European Union 50th anniversary meeting in Beijing. However, with grievances over trade and the war in Ukraine casting a shadow over those talks, no transaction was announced, the sources said. While China and the EU wait for another appropriate occasion, individual Chinese airlines have been in discussions with local procurement authorities to settle their purchase requests and then negotiate with Airbus directly on plane numbers, the sources said. Airbus declined to comment. Representatives for China Southern, Air China, China Eastern and Xiamen Air did not respond to requests for comment. Sichuan Airlines could not be reached. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Chinese airlines are keen to secure access to plane deliveries before the end of the decade, considering the supply backlog at both Airbus and Boeing. Airbus had told its Chinese customers they risked relinquishing the prized slots if they did not sign up soon, one of the sources said. The European planemaker has largely sold out of production slots for its most popular single-aisle jet and widebody products through the end of this decade. With the second-largest air travel market in the world and plenty of unrealised growth, China needs planes to replace older jets and fuel both domestic and international expansion. The magnitude of the mooted deal also shows China's continued reliance on US and Western industrial technology, despite developing the Commercial Aircraft Corporation of China, or Comac, as a homegrown champion. Comac's marquee C919 jet still faces a slow ramp-up. Although it has won an order for 300 planes from the country's top three airlines, China Southern, Air China and China Eastern, it's delivered just 21 of them since December 2022. The Airbus deal's finalisation would give the European planemaker an edge this year on net planes ordered as politics and trade dominate commercial agreements. Boeing leads Airbus with 739 orders so far in 2025 versus its 501, aided by large deals influenced by US President Donald Trump. Airbus has, however, increased its share of sales to China, helped by a final assembly line in Tianjin for its popular A320 family aircraft. The facility is undergoing an expansion that will ultimately see it double in size. Airbus has also historically benefited from Boeing's 737 Max grounding that prevented deliveries into China for years. Chinese carriers have not announced a major order for US-made planes since at least 2017. BLOOMBERG
Straits Times
2 hours ago
- Straits Times
PlayStation prices rise as US tariffs bite
Sign up now: Get ST's newsletters delivered to your inbox The new price for PS5 will be US$550 (S$707), with a 'Digital Edition' priced at US$500 and a Pro version for US$750. SAN FRANCISCO - Sony on Aug 20 said it is bumping up the price of PlayStation 5 video game consoles by US$50 (S$64.26) in the United States due to a 'challenging economic environment.' Tariffs imposed by President Donald Trump hike the cost of goods brought into the US, leaving companies like Japan's Sony to decide whether to pass that on to consumers. 'Similar to many global businesses, we continue to navigate a challenging economic environment,' Sony Interactive Entertainment vice-president of global marketing Isabelle Tomatis said in a post. After initially being threatened with a 25 per cent hike, Japan negotiated a 15 per cent tariff with the Trump administration. 'As a result, we've made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US.' The new price for PS5 will be US$550, with a 'Digital Edition' priced at US$500 and a Pro version for US$750, according to Ms Tomatis. In May, Sony warned it was considering tweaking prices in the US, estimating that tariffs could wind up costing the company about US$680 million in the fiscal year. American companies are feeling the crunch, too. New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around US$100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost. US snack giant PepsiCo could increase prices of its soft drinks about 10 per cent to mitigate effects of US tariffs, particularly those on imported aluminium used to make soda cans, according to trade magazine Beverage Digest. Meanwhile, California-based energy drink maker Monster Beverages is considering raising prices due to a 'complex and dynamic customs landscape,' according to chief executive Hilton Schlosberg. The Commerce Department this week said the US broadened its steel and aluminum tariffs , impacting hundreds more products that contain both metals such as child seats, tableware and heavy equipment. Since returning to the presidency, Mr Trump has imposed tariffs on almost all US trading partners. Though the impact of Mr Trump's tariffs on consumer prices has been limited so far, economists warn that their full effects are yet to be seen. Some businesses have coped by bringing forward purchases of products they expected will encounter tariffs. Others have passed on additional costs to their consumers, or absorbed a part of the fresh tariff burden. AFP
