ACCCIM: Consider timing of expanded SST
But there must be careful consideration of the timing and sequencing of measures to ensure they do not unduly burden businesses, especially the micro, small and medium enterprises (MSMEs), it added.
Ultimately, increased business costs can lead to higher consumer inflation, according to Acccim president Datuk Ng Yih Pyng.
Ng said the expansion of the SST at a time of the evolving US tariff policy uncertainty and potential global economic slowdown would contribute to domestic economic and business conditions uncertainty.
"With businesses already facing rising operating costs, implementing expanded SST could further burden businesses with increased costs.
"Ultimately, increased business costs, if not absorbed, would be passed onto consumers, potentially dampen discretionary consumer spending due to higher prices of non-essential goods and a wider range of taxed services."
Ng added that the service tax on rental and leasing in particular would result in higher operating cost for many businesses given a low threshold of exemption from paying service tax for MSMEs with annual sales below RM500,000.
"In this regard, we appeal to the government to consider deferring the implementation of the expanded SST to a later date, when macroeconomic conditions are more certain.
"It must be noted that the deferment of e-invoicing implementation for businesses with annual income or sales between RM1 million and RM5 million (Phase IV) from July 1, 2025 to Jan 1, 2026 reflects the government's acknowledgment and consideration of businesses' concerns regarding its impact on operating costs," he said.
Acccim also called for a review of the threshold exemption from the SST expansion, to be raised higher to RM2 million annual sales, to relieve the burden on more micro and small businesses.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
29 minutes ago
- The Star
Asean News Headlines at 10pm on Wednesday (Aug 20, 2025)
Malaysia * No Malaysians will be marginalised, says Anwar * TikTok user charged with making false statement about PM * PSM claims its deputy chairman Arutchelvan arrested by police * Parliamentary committee to table statement on bullying in school next week * Ismail Sabri denies any link to attack on Rafizi's son * Sarawak's internet coverage increased to 91.93% under Jendela, says Fahmi * More items exempted under SST than GST, says Finance Ministry * New permit path being drafted to help separated foreign spouses stay with Malaysian kids, says Saifuddin * Online scam cases show no decline despite campaigns, says Saifuddin Nasution * Cabinet to discuss proposed cyberbullying tribunal on Friday, says PM * Zara Qairina case: Five teens arrive at KK court face bullying charge * PM to review Umno protest over ex-members joining Unity Government parties * Zara Qairina case: Leave it to the courts, not social media, says Saifuddin * Jana Wibawa case: Segambut Bersatu deputy chief acquitted of all 12 charges * Proceedings pauses before pleas in Zara Qairina bullying case * 3,367 foreign nationals held, investigated by Selangor immigration in first half of the year * MACC cripples tobacco smuggling syndicates * National Artificial Intelligence Action Plan near completion, says Gobind * Jobless man jailed five years, fined for setting fire to JB city tow truck * Malaysia to retain ND6, ND7 terminology for oil and gas blocks, not Ambalat * Zara Qairina case: Teens plead not guilty to bullying charge * IGP Mohd Khalid's appointment followed due process, says Home Ministry * Court issues gag order on Zara's bullying case * Malaysia needs 100,000 more engineers, says Nanta * Anti-bullying Act proposal to be presented to Cabinet soon, says Azalina * Further investigations underway into 'Geng Budak Sekolah' involving minors * Digital Ministry to soft launch MyGov app for key govt services on Aug 23, seeks public feedback * Form Four schoolgirl claims she has been bullied since May, say Melaka cops * Suhakam calls for formation of dedicated anti-bullying portal * Insurance agent remanded five days for allegedly abetting RM21mil investment scam * Johor cops receive report from bullying victim's mother * National Day rehearsals: 14 main roads in Putrajaya to close from Aug 26-29 * Cops seize over RM13mil in drugs, five arrested * Pasir Mas bullying case: Six Form Four students remanded * Child Act protects all children, not just victims, says PM Dept's Legal Affairs Division * Cops questioned four MACC staff among 48 over Pamela Ling's disappearance, says Saifuddin Nasution * Malaysia's vast water, energy resources major draw for foreign investment, says PM Anwar * Opposition MP questions Education Minister's silence on Zara Qairina case in Parliament * Johor has enough water for industry use to last beyond 2050, says MB * Palace warns of TikTok account mimicking Queen's voice * Counter setting: Two KLIA Immigration officers nabbed in RM400,000 bribery probe * Psychiatric examination for foreign student who ran amok with knife * Man who claimed to be pathologist has history of scams, says Fahmi * Uni student falls to death, father claims she was bullied * Animal lovers raise RM51,100 as reward to catch Biao Mei's killer * Cops probing Johor flag being displayed upside-down * Police reopen investigation into Wan Ahmad Faris' death, says Saifuddin * African Swine Fever: Farmers reminded not to misuse movement permits Singapore * Emergency broadcast system to alert Singapore public of disasters on their mobile phones * Hyflux founder Olivia Lum and ex-CFO gave input to 'play down' energy component of Tuaspring project * Grab users in Singapore shocked by fares of over S$1,000 due to display glitch * Singaporean director Jack Neo's new music video features AI-generated image of Lee Kuan Yew * Nearly two years' jail, caning for Singaporean man caught with at least 100 sexually explicit videos of children * Singapore office demand soars 12-fold as Hong Kong 'subdued': Colliers * Woman trapped between train doors: Singapore Judge rules SBS Transit '100% responsible' * Singaporean man admits slapping six-year-old boy who kicked styrofoam wall, causing his daughter to fall Indonesia * Indonesia to hold rate as Prabowo pushes spending to spur growth * Spanish man dies while spearfishing north of Bali * Indonesia's central bank surprises with rate cut * Indonesia's Mount Semeru erupts on Wednesday, spewing 800m ash column Thailand * Foreign tourists can now convert crypto to baht * Princess in coma for over two years remains under critical care * Royal Thai Navy uncovers evidence of Cambodian troops' use of landmines * Paetongtarn's possible resignation: A question of survival or no escape? * Asean Interim Observer Team observes civilian damages from Cambodian shelling in Surin, Thailand * Bank of Thailand clarifies 50,000 baht transfer limit applies only to vulnerable groups * Royal Thai Army says Cambodian army called to apologise over Chong An Ma incident Philippines * Marcos mulls economic sabotage charges against fraudsters in flood-control projects * Philippines warned: Tuna exports at risk over Supreme Court ruling on municipal waters * US seeks extradition of Phillipine televangelist Apollo Quiboloy: Ambassador Romualdez Vietnam * Tourism set to drive HCM City's economy in new development phase * Vietnam Airlines moves operations to new airport in Phnom Penh * Vietnamese, Bhutanese leaders back plan for direct flights Myanmar * Gritty Myanmar girls lose Asean football trophy but triumph over personal hardship * Myanmar junta captures key town, expanding election writ Cambodia * Returning Cambodian migrant workers urged to call hotline to register for jobs * Cambodian soldier in landmine planting video identified as same from joint patrols Laos * Laos, Myanmar deepen ties as they mark 70 years of diplomatic relations Brunei * Ten from Brunei head to Indonesia for Asean Deaf Games * Brunei, Thailand seal health collaboration MoU Aseanplus * North Korea dismisses South Korean president's 'gibberish' ahead of US summit * India tilts from US towards Eurasia * Ex-spies seek to return * Over 10 dead as storms batter north region * Kim slams military drills while inspecting warship * Showered by rocks and rain * Swatch apologises for 'slanted eye' ad after backlash * Floods bring Mumbai to a standstill * Japan's exports fall more than expected in July on US tariff pressures * Michelle Yeoh reveals husband counts their love in days, not years: 'If I really ask, he'll give me hours and minutes too' * Bursa investors take breather as Wall St stocks fall ahead of Fed summit * Ringgit opens flat against US$ on cautious sentiment * China's favourite 'ugly' products celebrated with exhibition * China to stage massive military parade involving tens of thousands of people * Asian markets dip after US tech slide * Time to Go: Japan pro board game player retires at 98 * New Zealand soldier gets two-year sentence for attempted espionage * South Korea President Lee Jae Myung to discuss future of K-pop in TV special * Workplace bullying cases of migrant workers in S. Korea triple since 2020 * China, India pledge to resume flights as Beijing's top diplomat wraps up visit * FBM KLCI traders take to the sidelines in lead up to corporate earnings, Fed summit * North Korea slams Seoul's leadership as two-faced * Putin, Modi to meet in Delhi by end of year, Russian embassy official says * Evicted Afghan refugees huddle in Islamabad park, dreading return home * China, US trade talks boost investor optimism * Gold hits near 3-week low on stronger dollar, Fed symposium in focus * New policy in China fuels rise in fertility treatments * Robots deployed for Fukushima radioactive debris removal * Pakistan's Karachi hit by torrential rain and floods * Dog abandoned inside train in India stokes outrage amid crackdown on strays * Extremely bright fireball lights up Japanese skies * Axelsen drops bombshell by announcing separation from wife * Seoul named favourite city by Gen Z, millennial travellers worldwide * No official letter yet about US tariffs on semiconductor chips, says Zafrul * Three dead, one missing in South-West China rain-triggered landslide * Fuel prices Aug 21-27: Diesel down five sen, petrol unchanged * Australia edge Myanmar to win Women's Asean football fest; host Vietnam grabs third place after win over Thailand * What we know about the man who attacked Delhi CM Rekha Gupta * Ringgit rises against major currencies, eases vs US dollar * Rural C-drama 'This thriving land' is winning hearts all over South-East Asia and East Asia * Two firefighters die battling fire at building in Osaka's Minami district * Air Supply returns to Malaysia for 50th anniversary concert, will perform in KL and Kuching * Did you know that it's dangerous to give slushies to kids? * Venus Williams to get new Barbie as part of Inspiring Women collection * HK actor Bobby Au-yeung and wife mark their birthdays in rare public appearance together * World's largest computer game fair, Gamescom, breaks its own record * Hong Kong democrat Jimmy Lai's lawyer defends basic rights in trial's final stretch * Chinese husband learns during wife's abortion that unborn child is neighbour's * India proposes law to sack ministers facing criminal charges * Hong Kong 47: Tiffany Yuen freed after more than four years in prison * Trump says he will arrange Putin, Zelensky meeting after speaking with both * Taiwanese actor Steve Ma, 63, finds love with woman 26 years his junior
New Straits Times
an hour ago
- New Straits Times
NST Leader: Of defence assets and agents
AUG 16 will be a day that the people who matter in the Defence Ministry will never forget. It was the day His Majesty Sultan Ibrahim, King of Malaysia disclosed to the nation that the ministry was full of agents, ex-generals turned salesmen and even textile merchants peddling drones. He made this disclosure in his royal address during the parade marking the 60th anniversary of the Special Forces Regiment at Kem Iskandar in Mersing, Johor. Relying on agents is a dangerous pursuit for an institution that is tasked with defending the country. And in case they forget, three days later, Prime Minister Datuk Seri Anwar Ibrahim reminded those responsible for procuring defence assets to end the reliance on agents when replying to a question in Parliament. The Defence Ministry, he said, had faced decades of controversies and scandals involving procurement, forcing the government to adopt government-to-government negotiations. Why then is the Defence Ministry packed with agents? Perhaps the RM5 billion defence procurement and development spending in 2024 — an increase of RM2 billion from that of 2020 — has something to do with it. A royal reprimand and a prime ministerial reminder say a lot about the seriousness of the problem. Enough of the "the decades of controversies and scandals", we say. We know that middlemen is a Malaysian malaise, but of all places in the Defence Ministry? The use of agents — ex-generals or otherwise — comes with at least two dangers. Let's begin with the more dangerous of the dangers: poor quality of defence assets peddled by the agents. Compromise the defence assets, then you compromise the defence of the country. Defence assets of quality don't need agents to peddle them. Nations will beat the path to their door. It is "flying coffins", to borrow a royal phrase, like the second-hand A-4 Skyhawk aircraft bought in the 1980s, that need the hawking, excuse the pun. Scrap the plan to buy the 30-year-old Black Hawk helicopters, Sultan Ibrahim ordered the Defence Ministry. Media reports say the armed forces is scrapping its plan to buy four Black Hawk helicopters at a cost of RM187 million. But the question is: why wait for the royal command? Isn't the internal process robust enough to raise red flags? Or is integrity a challenge? Dropping the purchase of the helicopters is just the first step. More needs to be done. The primary interest of agents, even ex-generals turned salesmen, is how much they can get out of the deal. The quality of the defence assets they are hawking or whether or not they are compromising the security of the nation is secondary. For Malaysia, a nation of small means, every ringgit spent must show up its worth. The purchase of 88 second-hand A-4 Skyhawk jets did the exact opposite. It drained the country's coffers of millions. Although the price tag was US$1 million each, getting them refurbished took years, spiralling the cost to four times that to RM1.2 billion, media reports say. Then there is the Scorpene submarine deal in 2002 that cost US$130 million in commission. If this is how we do procurement of defence assets, even hundreds of billions wouldn't be enough.
The Sun
3 hours ago
- The Sun
Kedah water tariff hike explained by MB as non-burdensome
ALOR SETAR: Menteri Besar Datuk Seri Muhammad Sanusi Md Nor stated that the water tariff increase effective from August 1 will not burden Kedah residents. He emphasised that the new rate of 81 sen for the first 20 cubic metres of domestic use is significantly lower than tariffs in other states. According to Muhammad Sanusi, this adjustment is crucial for Syarikat Air Darul Aman Sdn Bhd (SADA) to manage the state government's water-related debts. 'This tariff increase is not just happening in Kedah,' he confirmed during the Kedah State Legislative Assembly session. He noted that all ten water supply operators in the country requested and received approval for similar adjustments. Muhammad Sanusi, who also chairs SADA, explained that profitability is essential for the company to settle its water supply debts. SADA's financial records show profits after tax ranging from RM31,000 to RM23.1 million between 2010 and 2018. The company faced a loss of RM36 million in 2019 but returned to profitability with RM149,000 in 2020. Profits grew to RM29.5 million in 2021, followed by RM29.4 million in 2022 and RM25.2 million in 2023. SADA recorded RM41.5 million in profit for 2024 and projects an RM80 million profit for the current year. Executive authority over clean water supply resides with the federal government through the National Water Services Commission (SPAN). This is stipulated under Section 3 of the Water Services Industry Act 2006. 'SPAN issues licenses and controls all business plan operators,' Muhammad Sanusi elaborated. He added that SPAN possesses the executive power to take over operations if debt payments cannot be covered. - Bernama
