Govt to ensure SST exemption for eligible construction projects
Deputy Works Minister Datuk Seri Ahmad Maslan ( pic ) said these exemptions include construction services related to residential buildings and public facilities such as places of worship, public toilets and recreational parks.
'The government recognises the importance of ensuring that the construction sector is not adversely affected by the implementation of SST.
'Therefore, we have taken steps to provide exemptions for specific categories of projects deemed eligible,' he said on Monday (Jul 28).
Yusuf Abd Wahab (GPS-Tanjong Manis) asked about the types of construction projects that are exempt from SST, and the ministry's approach to ensure that ongoing developments are not disrupted.
Ahmad said certain business-to-business (B2B) activities are subject to specific conditions.
For example, while main contractors may be subject to SST, subcontractors involved in projects valued below RM1.5mil are exempt.
Additionally, he said essential construction materials such as cement, gravel and sand remain zero-rated for sales tax as part of the government's effort to support the sector.
He also said there are currently no plans to increase the SST threshold, which will remain unchanged.
'There have been no discussions to raise it to RM3mil,' he said.
On project timelines, he stressed that the ministry does not tolerate delays.
'We do not like late work. After two or three extensions of time (EOT), the companies involved will be fined daily.
'Once they are penalised, they will not be awarded future projects,' he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
14 minutes ago
- Malay Mail
No more dropping out: Govt tables Bill to make secondary school compulsory
KUALA LUMPUR, July 28 — The Education (Amendment) Bill 2025, which seeks to make secondary education compulsory, was tabled for first reading in the Dewan Rakyat today. Deputy Education Minister Wong Kah Woh, when tabling the Bill, said the second reading is expected to take place during the current parliamentary sitting. The Bill seeks to amend Section 2 of the Education Act 1996 (Act 550) to substitute the definition of 'compulsory education' to include secondary education. It also proposes a new Section 32A, which provides that every parent whose child is a Malaysian citizen and resides in Malaysia must ensure the child is enrolled in a secondary education institution and remains in school throughout the secondary education period. Failure to comply with this requirement may result in a fine of up to RM5,000 or imprisonment for up to six months, or both, upon conviction. The Bill also states that the proposed amendments will involve additional government expenditure, the amount of which has yet to be determined. — Bernama
Barnama
32 minutes ago
- Barnama
Perak FMM Calls For More Engagement Sessions To Clarify SST Expansion
IPOH, July 28 (Bernama) -- The Perak Federation of Malaysian Manufacturers (FMM) is calling for more engagement sessions to be held to provide clarification to industry players regarding the expansion of the Sales and Services Tax (SST) scope, which came into effect on July 1. Its deputy chairman Mark Chan Chow Loong said this was important given that the expansion involves more than 3,000 additional items, raising many technical questions among manufacturers. 'As we know, the SST expansion was only recently announced, so many companies and manufacturers still require further clarification on how it is implemented and its impact on production costs. 'Therefore, these sessions are very beneficial as they provide a clearer understanding to manufacturers, especially regarding the list of products involved, exemption applications, and implications on production costs,' he said at the Special Coffee Series: SST Expansion briefing here today. Also present was Perak State Development Corporation (PKNPk) chief executive officer Datuk Redza Rafiq Abdul Razak. A total of 450 industry players and manufacturers from various sectors across Perak attended the session. Chan explained that while the SST expansion has implications on the cost of raw materials, the impact varies depending on the type of product and the composition of raw materials used. 'For instance, in the plastics industry, raw materials contribute between 60 to 80 per cent of the cost of finished products. So any additional tax imposed will have a direct impact on prices,' he said. Meanwhile, Redza Rafiq said the engagement session was not just a typical briefing, but rather a strategic and inclusive platform that brought together policymakers, implementing agencies, and the business community.
The Star
an hour ago
- The Star
Cross Border Insolvency Bill 2025 tabled in Dewan Rakyat for first reading
KUALA LUMPUR: The Cross Border Insolvency Bill 2025, enabling local creditors to recover debts from insolvent companies within the ASEAN region, has been tabled for its first reading in the Dewan Rakyat. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said tabled the Bill on Monday (July 28). The proposed Bill aims to promote cooperation between courts and authorities in Malaysia and foreign states involved in cross-border insolvency cases. It also seeks to provide legal certainty for trade and investment and ensure fair administration of cross-border insolvencies, protecting creditors' interests and the debtor. The Bill aims to protect and maximise the value of the debtor's property and facilitate the rescue of financially troubled businesses. Clause 3 outlines the Bill's application when assistance is sought in Malaysia or any foreign state regarding cross-border insolvency proceedings, or when foreign creditors participate in Malaysian proceedings. However, the Bill does not apply to individual insolvency, bankruptcy, those carrying on a registered business under specific Acts, or limited liability partnerships under the Limited Liability Partnership Act 2011. Some of the notable Clauses are; > Clause 4 provides that the Bill is to be read alongside existing Malaysian insolvency laws, supplementing rather than replacing them. > Clause 6 authorises Malaysian insolvency office-holders or court-appointed individuals to act in foreign states subject to local laws, while Clause 7 gives theCourt discretion to refuse recognition or grant relief if it conflicts with Malaysian public policy. > Clause 11 states that foreign representatives appointed in foreign proceedings can apply to commence proceedings under Malaysian law if conditions are met. > Clause 12 allows foreign representatives to participate in Malaysian debtor proceedings upon the recognition of foreign proceedings while Clause 13 ensures foreign creditors have the same rights as Malaysian creditors, stating their claims shall not be ranked lower solely because they are foreign. > Clause 21 provides discretionary relief upon recognising foreign proceedings, allowing the foreign representative to manage the debtor's Malaysian property, ensuring local creditors' interests are protected and > Clause 32 ensures equitable payment in concurrent proceedings, preventing creditors from receiving more than their share compared to others in Malaysia. The Bill's tabling follows Malaysia's plan to adopt the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.
