CNA938 Rewind - #TalkBack: A countdown clock or fake reviews ~ ever heard of "dark patterns" that your favourite online merchants are using?
CNA938 Rewind
Online travel agency Agoda has made changes to its Singapore website and mobile app, due to concerns about its problematic features raised by the Competition and Consumer Commission of Singapore. Lance Alexander and Daniel Martin discuss more with Ng Ming Jie, Director (Fair Trading Practices Division), Competition and Consumer Commission of Singapore (CCCS).
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Independent Singapore
41 minutes ago
- Independent Singapore
Record-breaking $12.32 million Toto jackpot won by single ticket in Yew Tee
WM Commons Featured News Singapore News SINGAPORE: A single, incredibly fortunate bettor has walked away with more than $12.32 million in Thursday night's (19 June) Toto draw, setting a new record for the highest first-prize payout in the history of Singapore Pools' Toto lottery. The winning numbers drawn on 19 June were 1, 10, 37, 40, 45, 47, with the bonus number 19. According to Singapore Pools, the jackpot prize — a staggering $12,323,051 — was the result of four consecutive draws where no winner had emerged for the top prize. Under Toto's updated rules, if the Group 1 (jackpot) prize is not won for three straight draws, it snowballs and must be paid out in the fourth draw, regardless of whether anyone matches all six winning numbers. This payout mechanism drove the prize pool to historic heights. The winning ticket was placed at Value Supermarket in Yew Tee Point, using the QuickPick System 7 Entry method, where the system generates a set of numbers for the player and increases the odds by selecting seven numbers instead of the usual six. See also Stories you might've missed, Sept 9 In addition to the record-breaking jackpot winner, 13 other tickets matched five numbers and the bonus number, each earning a second-prize payout of $108,637. With queues at Toto outlets expected to lengthen once again following this headline-making win, Singapore Pools continues to urge players to play responsibly.
CNA
an hour ago
- CNA
Malaysia's goods and service tax hike: ‘Necessary' but at what cost to businesses and consumers?
KUALA LUMPUR: Malaysian businesses and consumers already grappling with rising costs and the impact of United States tariffs could face added strain from the country's planned Sales and Service Tax (SST) hike next month, warned industry experts. While Prime Minister Anwar Ibrahim has defended the move as one targeting high-income earners, analysts and business groups said there could be spillover effects on the broader population and economy. 'Even though the sales tax increases are targeted towards non-essential and luxury goods, it may still impact the lower income through the effect of these taxes on the retail sectors,' economist Cassey Lee told CNA. 'The additional tax revenues collected through the higher sales taxes are also likely to be lower given the dampening effect of economic uncertainties on consumption of non-essential and luxury goods,' added Lee, who is a Senior Fellow and Coordinator for the Regional Economic Studies Programme at ISEAS-Yusof Ishak Institute in Singapore. A sales tax rate of 5 per cent or 10 per cent will be imposed on non-essential and luxury goods such as king crab, salmon, imported fruits, racing bicycles and antique artworks from next month, announced the Finance Ministry on Jun 9. The sales tax rate will remain unchanged for essential goods. Meanwhile, a service tax of 6 per cent or 8 per cent will be expanded to include property rentals or leasing, construction, financial services, private healthcare, education and beauty services. Acknowledging the growing public concern, Anwar's political secretary Muhammad Kamil Abdul Munim said that the expansion of the SST will proceed on Jul 1 as planned, but the government is open to revisiting the policy if necessary. The Finance Ministry on Wednesday (Jun 18) projected an additional RM5 billion (US$1.2 billion) in SST revenue from the expansion in 2025 and RM10 billion by 2026. On Sunday, Anwar said that the revenue generated from the tax collection would be used to increase the salaries of civil servants, social aid such as the 'Sumbangan Tunai Rahmah' and to develop infrastructure, local media reported. But the Federation of Malaysian Business Associations (FMBA) said that these gains 'must be weighed against the potential contraction in business activity and consumer spending', urging the government to reconsider and suspend the implementation. CUTBACKS AND HIGHER COSTS FOR CONSUMERS? Industry groups said they recognised the government's fiscal objectives but have voiced concerns over the 'far-reaching and potentially adverse impacts' the tax expansion may impose on small and medium enterprises (SMEs), the wider business ecosystem and Malaysian consumers. 'This move sends the wrong signal to domestic and foreign investors, raising doubts about policy consistency and the government's commitment to fostering a business-friendly environment,' said FMBA in a joint statement with five other major business associations. These are: SME Association of Malaysia, Malaysia Retail Chain Association, Malaysia Retailers Association, Bumiputra Retailers Organization Malaysia and Malaysia Shopping Malls Association. The six groups urged the government to defer the expansion, citing the potential impact on Malaysia's economy. 'Implementing such a broad-based tax hike amid a fragile recovery will exacerbate inflation, cripple SMEs, discourage investment and erode consumer confidence,' the statement dated Jun 15 read. In a separate statement on Tuesday, Abdul Malik Abdullah, chairman of the FMBA, said that SMEs, many of which operate on thin margins and limited cash flow, would face rising input costs due to the 'cascading nature' of the SST. 'Of greater concern is the fact that these economic sectors are involved in producing goods and services for end consumers, and may have to pass down some of the increased costs through market pricing,' a spokesperson from the Malaysian Institute of Economic Research also told CNA. Some business owners are already bracing for the impact. The owner of Salmonly Cafe in Kuala Lumpur, Nor Marsilla Ismail, told CNA that she is considering a menu revamp as she is adjusting prices and recalculating her costs and margins. 'Our bestseller item is the salmon rice bowl so we have to adapt to survive,' she said, noting that salmon prices have not yet increased, but could soon. Salmon is among the 'discretionary goods' that will be subjected to a 5 per cent sales tax rate starting next month. The revised tax framework is also expected to hit the manufacturing sector, particularly with the inclusion of capital goods such as machinery, which FMBA's Abdul Malik said could hinder business expansion and stifle innovation. Echoing these concerns, the Federation of Malaysian Manufacturing had previously highlighted that taxing machinery and equipment - typically considered capital expenditure - would drive up investment costs. Both the Federation of Malaysian Manufacturing and the Federation of Malaysian Business Associations have called for a broader exemption list to protect industry competitiveness. 'This includes items critical to upgrading production lines, automating processes and scaling operations,' said the Federation of Malaysian Manufacturing's president Soh Thian Lai, as quoted by The Edge on Jun 12. 'The imposition of sales tax on capital goods is expected to increase investment costs, potentially delaying business expansion and dampening overall investment appetite across key manufacturing and commercial sectors.' He added that many manufacturers newly affected by the revised SST, especially those previously exempt, would require more time to prepare and comply. In addition, under the expanded scope of service tax, leasing and rental services are now subject to an 8 per cent tax, with exemptions for residential rentals and SMEs with annual rental revenue below RM500,000. Tax partner Jalbir Singh Riar from Ernst & Young Tax Consultants Sdn Bhd (EY) said that the targeted exemptions reflect a 'progressive approach' by the government in balancing the need for increased revenue with socio-economic considerations. Still, industry observers caution that the broader scope of service tax to include rentals could lead to higher operational costs, which will be transferred to consumers through higher prices, potentially weakening consumer demand and discretionary spending. Teh Young Khean, senior executive director at real estate consultancy Knight Frank Malaysia, added that the 8 per cent tax could affect existing tenancy agreements that typically have fixed terms, prompting companies to reassess their real estate strategies. This may result in businesses postponing expansion or relocation plans, or in some cases, downsizing their commercial footprint, he added. 'We anticipate a potential temporary slowdown in leasing activity as most businesses would be affected by the increase in the cost of doing business,' Teh told CNA. STILL 'NECESSARY' TO ENSURE LONG-TERM FISCAL RESILIENCE: EXPERTS Despite the challenges faced by businesses and consumers, economic experts said that the expanded SST is 'necessary' to boost tax revenue collection and enhance Malaysia's fiscal sustainability. The Malaysian Institute of Economic Research noted that Malaysia's tax to gross domestic product (GDP) ratio of below 13 per cent is much lower than the Asia Pacific average of 19.3 per cent in 2022. 'Therefore, we acknowledge that the expansion is necessary as part of overall tax reform considering depleting petroleum revenue and expected reduction in personal income taxes due to an ageing society,' a spokesperson from the institute. Data from the Organisation for Economic Cooperation and Development (OECD) also found that the ratio is much lower than the OECD average of 34 per cent. Malaysia's 2025 fiscal outlook report in August last year estimated that Malaysia's petroleum-related revenue is projected to decline to 18.3 per cent of the total federal revenue in 2025, continuing a downward trend that began in 2009, Free Malaysia Today reported. 'The move aligns with the broader fiscal consolidation agenda, aiming to broaden the tax base, boost revenue collection, and progressively reduce the federal government's budget deficit from 4.1 per cent of GDP in 2024 to 3.8 per cent in 2025,' Singh, the tax partner from EY, told CNA. The Malaysian Institute of Economic Research acknowledged that the base expansion of the SST is being introduced 'during very challenging economic circumstances amid the reciprocal tariffs imposed by the US' on the global front. In the joint statement by the six business associations, the groups highlighted the growing trade uncertainty with the tariffs that could further undermine Malaysia's export competitiveness, especially for SMEs integrated into global value chains. The Malaysian Institute of Economic Research said the government thus has a 'very delicate balancing act' in achieving revenue needs amidst external challenges and concurrently elevating inflation pressure in the economy. 'While the SST expansion is strategically sound, a phased implementation approach would provide businesses with more time to adjust and ensure smoother compliance,' said Singh of EY. Lee from ISEAS said that the government should consider fine-tuning its tax reforms to minimise the potential impact of tax increases on domestic consumption and the retail sector given the external uncertainties which will impact exports and foreign direct investments. Experts also told CNA that the government's move to provide some limited exemptions are 'steps in the right direction' which needs to be further strengthened with additional support measures to help alleviate inflationary pressures on businesses and the people. The six business associations meanwhile have called for a more consultative approach that prioritises business stability, national competitiveness and long-term growth. 'It is imperative that any tax policy or adjustment be approached with empathy and practicality, with the aim of ensuring that it does not become an added burden on already struggling enterprises,' the statement read, as quoted by the New Straits Times. The group of business associations has slammed the SST framework for lacking transparency and efficiency as compared to the previous Goods and Services Tax (GST), which avoided cascading taxation across supply chains. Cascading tax is a type of tax that's imposed at each stage of a product's journey along the supply chain. According to the groups, the SST model is unsustainable for SMEs operating on thin margins, discouraging investment, expansion and job creation, as reported by the New Straits Times. Anwar has defended the government's position, saying that it is not ready to reintroduce the GST as it is a broad-based tax that would affect all segments of society, especially the poor. 'GST taxes everybody. While it is efficient and straightforward, just 6 per cent across the board, I must ask, if everyone has to pay 6 per cent, why should the poor and the unemployed be taxed as well?' he said on Jun 15, as quoted by local media. WILL THE EXPANDED SST AFFECT ANWAR'S POLITICAL SUPPORT? The proposed tax expansion was announced by Anwar, who is also the finance minister, during the tabling of Budget 2025 in October last year. Although implementation was initially scheduled for May 1, full details of the revised scope were only confirmed on Jun 9. Some observers told CNA that the move could have political repercussions, especially among the urban middle class. 'If domestic consumption is severely impacted, this will reverberate to the lower-income population through unemployment,' Lee from ISEAS told CNA. However economic expert Ida Md Yasin from Putra Business School in Malaysia said that the SST expansion is 'only one of several factors' that will shape public support for Anwar. The finance ministry has announced that penalties against companies for non-compliance with the tax's legal requirements will not be imposed until Dec 31. Anwar's political secretary Muhammad Kamil has also reiterated the government's flexibility in responding to public concerns. 'This is not divine law, it's human legislation. So, there's no issue if adjustments or improvements are needed. What's important is that the majority of the people are not burdened by this expansion,' he said, as quoted by Malay Mail.
CNA
an hour ago
- CNA
CNA Explains: Singapore's tightened crypto licensing rules – 'closing the door' or 'raising the bar'?
SINGAPORE: The Monetary Authority of Singapore (MAS) has moved to tighten its regulation of unlicensed cryptocurrency firms operating in the country. Digital token service providers based in Singapore that only serve overseas markets will need to be licensed by Jun 30 – or they'll have to suspend or cease their unregulated activities here. Why is MAS doing this? Experts told CNA the authority was closing a loophole in the industry. 'It's a step towards consistency,' said intergovernmental blockchain advisor Anndy Lian, adding that ensuring digital token service providers meet the same standards could bolster trust. Prior to the regulation, providers targeting overseas markets could sidestep licensing requirements and exploit 'lighter oversight' while operating from Singapore, he noted. 'This move levels the playing field and likely reflects pressure to align with global anti-money laundering efforts,' said Mr Lian. Mr Adrian Ang, a partner at Allen & Gledhill's financial services department, added that it was necessary to support standards set by the global money laundering and terrorist financing watchdog, the Financial Action Task Force. 'Without regulation, the anonymity, speed and cross-border nature of their activities make this sector highly vulnerable to criminal abuse,' he said. How will firms be affected? As of Jun 19, MAS has granted digital payment token licences to 33 institutions, including major players like Coinbase and OKX. While unlicensed digital payment token services can still apply for a local license, MAS has said that it has 'set the bar high' and will 'generally not issue" one. Bitget and Bybit are among the top ten exchange operators by volume that do not have a Singapore licence. A Bloomberg report said Bitget will relocate staff to jurisdictions such as Dubai and Hong Kong, and that Bybit has plans to follow suit. But experts pointed out that it is the smaller firms that will feel the heat. While larger firms have in-house legal and compliance departments and experience in dealing with licensing frameworks, smaller and mid-sized players face an 'uphill task,' said Mr Mike Chiam, a fintech lawyer at Foxtail LLC. 'Many of them relied on operating from Singapore under a 'non-retail, overseas-only' assumption. That assumption no longer holds,' he said. For these firms – which include unlicensed crypto exchanges, over-the-counter brokers and decentralised finance projects targeting overseas markets – compliance costs, legal restructuring or a complete shutdown are on the table, he added. Mr Lian, who knows of many small firms trying to shift out of Singapore since early June, agreed that added compliance costs and processes weigh heavily on these. 'I've seen startups struggle with similar red tape elsewhere, and it risks pushing innovation to less regulated regions if not handled carefully,' he said. What about employees? Mr Chiam said a common question he's had to deal with relates to whether employees whose job scope involves dealing with digital tokens must relocate. Based on his law firm's understanding from employees' enquiries, it has found that such workers are generally not affected by MAS' stricter rules, he said. Practically speaking, employees working for digital token firms do not have to relocate - or at least, that is not the legislative intention, Mr Chiam added. 'On a positive note, employees appear to be interested in knowing how to better comply with regulations and keep abreast of such updates – overall a heightened awareness of the regulatory stance,' he said. An employee from MEXC, who requested anonymity, observed that other centralised exchanges have introduced additional know your customer (KYC) checks and anti-money laundering (AML) frameworks. These policies verify customers' identities, to prevent illicit activity and to comply with global regulations. Although MEXC does not have a local licence, the employee said his colleagues in Singapore have not been significantly affected. 'There are some observed changes within the compliance and legal teams, but for the most part, it is still business as usual,' he said. An employee from Bitget, who also requested anonymity, claimed that about ten members of the customer service team were laid off earlier in June. What does it mean for the industry here? Ms Angela Ang, who heads Asia Pacific's policy and strategic partnerships at blockchain intelligence company TRM Labs, said that while Singapore's approach to crypto may not resonate with everyone, it has been 'very consistent'. 'Firms that are not operating this specific kind of business model should not be unduly alarmed. Crypto businesses can still obtain licences here if they are prepared to have a substantive presence, including servicing Singapore customers,' said Ms Ang. She added that the industry has had 'significant runway' to make preparations since the Financial Services and Markets Act was passed in April 2022. In a media release on Jun 6, MAS also said its position has been 'consistently communicated' for a few years since its first response to public consultation issued in February 2022. It added that based on available information, it was aware of a 'very small number' of providers affected. Allen & Gledhill's Mr Ang agreed that most crypto firms here should have already undertaken licensing considerations prior to commencing their business, as licensing requirements have been 'in force for many years.' Ultimately, the move should not be misread as Singapore turning hostile to digital assets, Mr Chiam said. 'Instead, the law is making it clear: If your fintech wants to use Singapore's framework and reputation, you must meet Singapore's standards,' he said. 'In that sense, Singapore isn't closing the door – it's raising the bar."
