SST scope expansion a boost to national pineapple industry
JOHOR BAHRU: The Malaysian Pineapple Industry Board (LPNM) is optimistic that the reviewed and expanded Sales and Service Tax (SST), which comes into effect on July 1, 2025, will positively impact the growth of the national pineapple industry.
Its chairman, Sheikh Umar Bagharib Ali, said the initiative will not only increase national revenue but also create vast opportunities for the development and strengthening of the local fruit industry, particularly pineapples.
He said that as one of the country's main fruit commodities, pineapples have great potential, and the board foresees several positive effects that will support the industry's growth.
'This initiative can increase demand for local pineapples such as the MD2 variety, thus allowing farmers and local entrepreneurs to expand cultivation areas and boost their production.
'Additionally, the higher demand will have a positive impact on farm and market prices of pineapples, thereby improving returns for small-scale growers, young agropreneurs, and agricultural cooperatives actively involved in the sector,' he said in a statement today.
Sheikh Umar added that the move will also stimulate downstream sectors such as pineapple juice processing, snack products, and pineapple-based cosmetics, which will not only create job opportunities but also add export value for the country.
'Increased demand is expected to attract new investments in smart farming technologies, collection centres, packaging, as well as more efficient logistics and distribution systems, especially in major production areas like Johor, Pahang, Sarawak, and Sabah.
'This is because the SST expansion on imported fruits indirectly places local pineapples in a more competitive position in terms of price and quality,' he said.
Sheikh Umar noted that support for national food security will contribute to long-term goals of reducing dependence on food imports and improving self-sufficiency levels in the fruit sector.
'The effects of this SST expansion will not significantly impact imported fruit traders.
'The country's improving economic conditions will also benefit them over the longer term,' he said.
On Monday (June 9), the government announced a targeted review of the Sales Tax rate and the expansion of the Service Tax scope, set to take effect on July 1, 2025.
The Sales Tax rate remains unchanged for essential goods, while non-essential items will be taxed at either 5 per cent or 10 per cent, subject to discretion.
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