TNB faces RM5.05b tax bill following apex court verdict
The company reportedly warned that the ruling may impact its earnings and net assets this year.
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The Star
12 hours ago
- The Star
'Protect the rakyat's money', Dr Wee urges govt on TNB tax dispute
PETALING JAYA: Datuk Seri Dr Wee Ka Siong has responded to Kampar MP Chong Zhemin on the Federal Court's decision regarding Tenaga Nasional Berhad's (TNB) tax dispute, stressing that the issue concerns the people's money, not politics. "This is not about the legal technicalities of Schedule 7A vs 7B. The court has ruled TNB should have applied under Schedule 7B. The issue is not about TNB's status as a utility or manufacturer - the Federal Court has clarified that point," the MCA president stated in a Facebook post on Wednesday (Aug 6). Dr Wee emphasised the concern over RM5bil in public savings, adding that TNB was majority-owned by rakyat savings funds such as ASB, EPF, KWAP and Tabung Haji. "Over 63% of TNB's shares are ultimately rakyat money. If the government enforces this RM8.32bil additional tax and penalties bill, up to RM5bil of the rakyat's savings will be transferred into government coffers. "This is not a political show - it's a real financial blow to ordinary Malaysians," he added. Chong had accused Dr Wee of making a baseless attack on the court decision. Dr Wee argued that the court recognised TNB acted in good faith, acknowledging TNB's long-standing practice of applying for reinvestment allowance under Schedule 7A, previously accepted by the Inland Revenue Board (LHDN) for decades. "The decision now is a change in interpretation, not a finding of fraud or wrongdoing. "The solution lies with the Finance Minister and not the courts. Even after the court's decision, the law gives the Finance Minister absolute power to approve TNB's appeal and re-application under Section 7B to waive the disputed amount," he stated. Dr Wee urged for a clear response from the government: 'Will you protect their savings or take their money? This is not about 'cheap politics' but real people's money." He criticised dismissing concerns over billions in savings as "political theatre" and asserted his commitment to standing up for the people's interests. "The real question is: Will the Madani government protect the rakyat's RM5bil, or will they raid the rakyat's savings to cover their budget shortfall? "The people deserve a clear answer,' he concluded. The Federal Court ruled on July 2 in favour of LHDN in TNB's 2018 tax dispute, deciding that TNB should have applied for an investment allowance under Schedule 7B rather than the reinvestment allowance under Schedule 7A.
Daily Express
6 days ago
- Daily Express
Malaysia hails 19pc US tariff as positive outcome, markets rebound on economic plan
Published on: Friday, August 01, 2025 Published on: Fri, Aug 01, 2025 By: The Edge Text Size: KUALA LUMPUR: Malaysia has welcomed the lower-than-expected 19pc US tariff on its exports as a 'positive outcome', with the government pledging steps to mitigate the impact while advancing long-term industrial reforms. The announcement came as local markets reacted positively to both the tariff decision and the unveiling of the 13th Malaysia Plan (13MP). The Ministry of Investment, Trade and Industry (Miti) said Malaysia had stood firm on key policy red lines during negotiations, securing the tariff rate without compromising its sovereign right to implement critical socio-economic policies. Minister Tengku Datuk Seri Zafrul Abdul Aziz said the deal reflected Malaysia's credibility as a reliable trade and investment partner, expressing gratitude to US counterparts for their cooperation. To counter the tariff's effect on exports, Miti will promote the use of Malaysia's 18 free trade agreements, support small and medium enterprises, and advance key industrial strategies including the New Industrial Master Plan 2030, the Green Investment Strategy, and the National Semiconductor Strategy. Miti also plans outreach programmes to help exporters adapt and aims to strengthen US-Malaysia trade ties. Despite global economic uncertainties, Malaysia's strong domestic demand, policy reforms, and infrastructure pipeline are expected to buffer external shocks. The US is Malaysia's largest export market (RM198.65 billion) and top source of foreign investment (RM32.82 billion in 2024). Investor sentiment was buoyant on Friday, with the FBM KLCI rising to 1,533.10 points before pausing at 1,531.97, reversing previous losses and outperforming broader Asian markets. Gains were led by banking and construction stocks, notably CIMB (+4pc) and Gamuda (+4.2pc). The US tariff announcement and the RM430 billion 13MP development plan, averaging RM86 billion annually through 2030, drove optimism particularly for infrastructure and renewable energy sectors. Analysts from Phillip Capital and Hong Leong Investment Bank said the tariff outcome was milder than expected, and the government's focus on long-term infrastructure builds investor confidence. While the ringgit weakened slightly against the US dollar, government bonds held steady, indicating continued investor confidence in Malaysia's macroeconomic direction. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Focus Malaysia
6 days ago
- Focus Malaysia
MP13: Govt to curb abandoned housing projects with build-then-sell model
UNDER the 13th Malaysia Plan, the government plans to mandate the 'build-then-sell' model via amendments to Act 118 to curb abandoned housing projects, improve accountability and regulatory oversight. 'While this may pressure developers' balance sheets, financially stronger players are poised to benefit. The plan also highlights strategic industrial zones like JSSEZ, Kulim Hi-Tech Park and Carey Island, which are well-positioned due to infrastructure and location, in our view,' said Maybank Investment Bank. In our view, the BTS approach will help to reduce the risk of abandoned projects, encourages careful planning and better product quality to attract buyers. It may also address the oversupply issue by discouraging reckless launches and promoting more responsible, demand-driven development. However, the BTS model could weigh on developers' balance sheets, as financing must be secured before construction begins. The existing and new industrial parks/zones are poised to reshape the industrial investment landscape, intensifying competition as investors gain more choices and states offer varied incentives. We see JSSEZ, KHTP and Carey Island as the most competitive due to their strategic location to Singapore (JSSEZ) and Penang (KHTP), as well as strong infrastructure (Port of Tanjung Pelepas, upcoming JB-Spore Rapid Transit System [RTS] and Carey Island Port). Risk to our calls are such as the weaker-than-expected property sales dragged by weaker economic outlook, policy risks, stricter lending measures by the banks, higher-than-expected Liquidated Ascertained Damages compensation following latest ruling by the Federal Court, and rising building material costs and labour issues. —Aug 1, 2025 Main image: Tekkashop
