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New Straits Times
5 hours ago
- Business
- New Straits Times
Business awards' roadshow in Klang draws over 100 participants
KUALA LUMPUR: The 2025 Platinum Business Awards (PBA) National Roadshow has drawn more than 100 participants in Klang, representing the local manufacturing, services and retail industries. The roadshow seeks to motivate businesses to take part in the esteemed awards programme, encouraging them to overcome self-imposed boundaries and strive for national-level recognition. SME Association of Malaysia national president Dr Chin Chee Seong said it remains dedicated to supporting the long-term growth of small and medium enterprises (SMEs). This is by enhancing their competitiveness in an ever-evolving market landscape and steering them towards more structured, forward-looking business models. "We have established a strong presence across the country through our branch and member networks, which extend beyond state lines to regional levels. "This allows us to connect deeply with local businesses and truly understand their real needs," he said in his speech. SME Association of Klang president Alan Tan Fuu Soon said the city has a deep historical heritage and has been home to many capable and forward-thinking entrepreneurs. "True business strength doesn't lie in size, but in remaining steadfast during challenges and staying true to one's values. Klang entrepreneurs are shining examples of steady progress and continual breakthroughs," he said. Alan added that PBA seeks to recognise businesses that are steadfast, adaptable and dedicated to contributing to society.
New Straits Times
10-07-2025
- Business
- New Straits Times
Platinum Business Awards 2025 roadshow gathers 100 entrepreneurs in Kuantan
KUALA LUMPUR: Nearly 100 entrepreneurs gathered in Kuantan today as the 2025 Platinum Business Awards (PBA) National Roadshow continued its push to help small and medium enterprises (SMEs) expand beyond local markets. The roadshow is part of a nationwide initiative to raise awareness of the annual awards and encourage SMEs to explore growth opportunities beyond their immediate markets. Bebar assemblyman Datuk Mohammad Fakhruddin Mohd Ariff said the arrival of PBA in Kuantan underscores the city's status as a vital economic hub on the East Coast. He added that this city is home to resilient and forward-thinking entrepreneurs who continue to grow and transform from traditional trades to technology-driven sectors. "PBA is not just about celebrating success, it serves as a powerful platform to boost visibility, expand networks, and stimulate nationwide SME collaboration," he said in a statement. Meanwhile, SME Association of Malaysia president Dr Chin Chee Seong said the association continuously strengthens its engagement with the government and relevant agencies to secure greater resources and policy support for SMEs. He added that through its extensive network of branches across the country, it has built a strong service infrastructure that is truly connected to businesses and closely supports its members. He also said that the greatest value of the association lies in its ability to provide members with practical and tangible support—not merely information but becoming a trusted partner in their growth journey. Pahang SME Association president Datuk Simon Wong said the PBA roadshow aims to boost awareness and participation among East Coast businesses. "For a business to remain sustainable, it must continuously grow, innovate, and transform. In today's rapidly changing environment, we cannot wait for a crisis to take action. "Entrepreneurs must step out of their comfort zones, embrace new ideas, adopt new technologies and business models, and drive transformation and innovation continuously," he added. Wong further noted that as we move deeper into the 21st century, artificial intelligence (AI) has become an undeniable force of change. He said businesses must actively embrace AI and integrate it into all aspects of operations from production, logistics, and sales to finance and management. He added that the AI transformation is no longer an option but a necessary path for the future of business. According to PBA 2025 organising chairman Dennix Yeow Wah Fuong, this year's awards include 21 categories, covering sectors such as manufacturing, technology, services, and green transformation. He encouraged businesses from all industries to take part, adding that it helps them stand out in a competitive market, enhances credibility and reputation, and opens doors to both local and international opportunities. Guests at the event included Alliance Bank vice president Titan Lee Wen Chieh and Media Prima Bhd business development director Roche Chew.
The Star
02-07-2025
- Business
- The Star
Brace for price hikes across the board, consumers told
PETALING JAYA: Consumers should brace themselves for a gradual increase in prices of goods following the implementation of the new electricity tariffs effective July 1, say business groups. This is because manufacturers and those in the affected sectors may not be able to absorb higher costs and would likely pass on to consumers. SME Association of Malaysia president Chin Chee Seong said it is too early to gauge the overall increase in electricity bills for businesses. 'It is difficult to say how much their electricity bills will increase at the moment. 'This is because the new tariffs are based on the amount of electricity used and on different rates of consumption. 'Talk among some SMEs is that there is likely to be at least a 20% increase in electricity bills,' he said when contacted yesterday. Chin said the association will gather feedback from its members to determine how much more they have to pay for their electricity. Asked whether the SMEs will absorb the higher electricity costs, Chin said it is unlikely. 'Most of them would not absorb the cost and pass it down to either their supply chain or consumers. 'We should expect to see an increase in prices, especially among the SMEs, food and beverage, and the retail sectors,' he said. Federation of Malaysian Business Association vice-chairman Nivas Ragavan said some businesses may try to absorb the electricity cost increase, but not entirely. 'Manufacturers have always tried to absorb cost increases where possible through efficiency measures and cost optimisation. 'However, with rising cumulative costs such as raw materials, logistics, labour and now energy, many, particularly the SMEs and export-driven businesses with thin margins, will not be able to absorb the full cost,' he said when contacted yesterday. He said the manufacturing sector is expected to see its electricity bills increase between 5% and 7%. 'For energy-intensive industries, the impact could be more significant, especially if they are not eligible for the Imbalance Cost Pass-Through rebate,' he added. As a result of this, Nivas said that it is likely that some portion of the increased energy cost will be passed down the supply chain. 'This could take the form of adjusted pricing to downstream partners and eventually may have an impact on consumer prices, depending on the sector and product,' he said. He noted that some manufacturers will try to minimise the increase in cost where possible to remain competitive, especially in global markets. Federation of Malaysian Manufacturing (FMM) president Tan Sri Soh Thian Lai said the new electricity tariffs will not have a uniform impact on the manufacturing sector and will vary according to electricity usage. 'FMM understands that 70% of medium voltage customers, many of whom are industrial users, will have a reduction in electricity bill ranging from 4% up to 18% depending on the load factor. 'The higher their load factor, the higher the reduction in their bills,' he said when contacted yesterday. However, Soh said the remaining 30% with a low load factor may see an increase of between 3% and 10% in the electricity bills. 'Some customers in this category have installed solar PV systems, allowing them to offset the increase in bill through the revised mechanism under the renewable energy schemes,' he added. Asked whether the increase in cost will be passed down through the supply chain, Soh said it is unlikely due to stiff market competition.
New Straits Times
30-06-2025
- Business
- New Straits Times
F&B operators aim to stay resilient amid SST and cost pressures
KUALA LUMPUR: Food and beverage (F&B) prices are expected to rise as operators manage higher costs under the expanded Sales and Service Tax (SST), industry groups say. Associations representing restaurants, retailers and small and medium enterprises (SMEs) noted that the eight per cent SST on services, including commercial rentals, combined with rising input costs will leave many businesses with little choice but to adjust prices, despite the risk of losing some customers. Persatuan Pengusaha Restoran Muslim Malaysia (PRESMA) president Datuk Jawahar Ali told Business Times that prices are likely to increase in certain segments, especially those already operating on tight margins. "While many operators are trying their best to absorb the cost, cumulative increases from SST, higher raw material prices and rising labour costs make it very difficult to do so. "Our members are encouraged to be transparent with customers by displaying breakdowns of pricing and tax where possible, as well as communicating the reason for any price adjustment clearly to avoid misunderstanding or loss of trust," he said. Meanwhile, SME Association of Malaysia national president Dr Chin Chee Seong said a price increase in the F&B sector is widely expected following the implementation of the revised SST, driven largely by the tax on commercial rentals, which is set to cascade through operating costs and ultimately impact menu prices. "For many F&B operators, rental constitutes a significant portion of fixed overheads, especially in high-traffic malls or prime commercial locations. "The imposition of an 8 per cent tax on rental charges directly increases cost burdens, which most businesses find difficult to absorb without adjusting their pricing structures," he added. Chin also said that the sector is highly price-sensitive; hence, marginal increases can influence consumer behaviour. "Operators fear that price hikes may lead to lower footfall, reduced frequency of visits, or a shift in customer preferences towards home-cooked alternatives or lower-cost options," he said. Short notice and uneven readiness While some larger chains are ready for the rollout, many small and medium-sized operators remain unprepared. The Small and Medium Enterprises Association (Samenta) national president Datuk William Ng said larger SMEs, especially those in the retail and F&B sectors with modern point-of-sale (POS) systems, tend to be more prepared, while smaller ones are still in the midst of adjusting. "It's not as simple as updating the POS. You need to reprint materials, price lists, and signages and train employees on the expanded SST, especially if you are caught with multiple tiers of SST. "In fact, some manual POS do not have the option of adding a second or third button for varying SST levels," he said. Ng added that many SMEs remain hesitant about whether to pass the tax burden onto consumers, caught between the risk of losing customers in a highly competitive, price-sensitive market and the strain of absorbing additional costs amid weak consumer spending. "Micro and small enterprises are disproportionately affected, despite the revenue threshold. Many do not have access to proper accounting support or digital tools, making compliance more challenging. "Awareness and understanding of SST regulations are also limited in this group. Without targeted outreach and education, there is a risk of non-compliance, either inadvertently or out of necessity," he warned. Bumiputra Retailers Organisation president Datuk Syed Naqiz Shahabuddin Syed Abdul Jabbar added that although larger franchises are likely compliant, many SMEs and independent eateries are still adapting, especially those newly crossing the RM1.5 million annual revenue threshold for mandatory registration. Despite a Customs Department grace period for penalty-free adjustments until December 2025, he said uncertainty around taxable services and implementation procedures persists. "The transition period is tight and many are still finalising changes, particularly in ensuring system accuracy and customer communication," Syed Naqiz Shahabuddin said. Datuk Jawahar said not all POS vendors serving PRESMA members are ready to deliver the necessary system updates, especially for operators still using older systems. "There's also confusion on how exactly to apply SST for dine-in versus takeaway or delivery orders, which complicates system setup and pricing," he added. This, he said, poses significant challenges for small F&B operators, many of whom lack the technical capability to update their POS systems quickly. The additional costs for software upgrades, staff training and accounting support also place further strain on already thin profit margins. Chin Chee Seong warned that the expanded SST, combined with other cost pressures like new EPF contributions for foreign workers, higher electricity and gas tariffs, and logistics costs, would significantly erode profit margins. "The SST regime is widely perceived by our members as less business-friendly compared to GST. SST's cascading tax effect, coupled with its limited input tax credit mechanism, reduces transparency and increases compliance burdens, especially for service-based SMEs. "Most SMEs anticipate that the increased tax burden will inevitably be passed down to consumers, which is expected to contribute to rising inflation, with many estimating inflation could rise up to 5.0 per cent in 2025, driven by higher retail and service prices," he said. While businesses exceeding RM1 million in annual revenue are clearly mandated to register and comply, Chin said even those below the threshold face confusion and operational strain, especially with the upcoming implementation of e-Invoice. Calls for policy review and gradual rollout In response, associations are urging the government to revise the SST implementation approach. PRESMA called for a grace period for enforcement, clearer sector-specific guidelines and a public awareness campaign to manage expectations. "We are not against taxation, but we believe a more gradual, better-informed rollout will ensure fairness and long-term sustainability for both the government and the business community," Jawahar said. The Bumiputra Retailers Organisation proposed deferring SST on rental services until economic conditions stabilise and raising the SST registration threshold for rental income to RM5 million to support micro and small businesses. The SME Association of Malaysia urged the government to immediately postpone or reconsider the implementation, particularly with regard to rental and leasing charges, which pose significant risks to business sustainability across multiple sectors. Chin said the revised tax will dampen the growth and resilience of SMEs, many of whom are already struggling with rising operational costs and limited margins. He said the additional tax burden will inevitably be passed on to consumers and is likely to drive inflation in the coming year, further weakening consumer spending and economic stability. "We call for a comprehensive, evidence-based impact assessment, coupled with meaningful engagement involving all affected stakeholders, including industry associations, SMEs and business leaders. "A policy of such significance must be shaped through inclusive dialogue to ensure that it is both economically sustainable and socially equitable," he added.
New Straits Times
30-06-2025
- Business
- New Straits Times
SST revision welcomed, but broader relief needed for MSMEs
KUALA LUMPUR: The government's move to raise the sales and service tax (SST) registration threshold to RM1 million is seen as a positive step that offers some breathing space for micro, small and medium enterprises (MSMEs), although wider structural challenges remain. Small Medium Enterprise (SME) Association of Malaysia president Chin Chee Seong said the higher threshold will ease some cost pressures for small landlords and tenants, providing modest relief for smaller businesses working hard to stay afloat in a tough economic climate. However, he noted that many MSMEs, especially those renting from large commercial property owners, will still have to bear the eight per cent service tax, meaning the tax burden will continue to weigh on businesses already struggling with tight margins, rising costs and subdued consumer spending. "As such, the tax burden continues to cascade onto small businesses, many of which are already grappling with razor-thin margins, inflationary pressures, and weak consumer demand," he told Business Times. Chin pointed out that the higher threshold is unlikely to have a significant impact on government revenue, as it mainly exempts a small group of smaller service providers. He cautioned, however, that the larger economic impact of not easing the SST burden for MSMEs could include business closures, job losses and higher prices for consumers, outcomes that could ultimately cost more than the short-term tax revenue gained. He added that the government must prioritise long-term economic resilience over marginal revenue expansion, particularly when over 60 per cent of Malaysia's gross domestic product (GDP) is driven by domestic consumption and SME activity. On the exemption of imported fruits such as mandarin oranges and dates from the sales tax, Chin described it as a thoughtful gesture that will help keep prices stable during key festive periods like Chinese New Year and Ramadan, benefiting many low- and middle-income households. He noted that this can help keep prices stable during festive seasons and provide small relief for low-income and middle-income households. However, Chin said the impact on overall inflation will be very small, as these fruits make up only a small part of what people usually spend on. "Without addressing bigger cost issues like the eight per cent SST on commercial rentals, high logistics costs, and rising prices of goods. "This exemption won't make a big difference in controlling inflation. In short, while this is a welcome and symbolic gesture, it should be part of a broader and more effective plan to control rising costs and support consumer spending," he said. Overall, Chin said the government's decision to revise the SST, particularly by exempting beauty services and raising the registration threshold, shows it is responding to public concerns and industry feedback, which is a positive step. He added that it reflects a move towards more targeted and thoughtful tax policies, instead of applying the same rules to everyone. However, Chin said these decisions also highlight a reactive approach made after pushback, rather than based on proper economic analysis or early consultation. He added that making tax changes in bits and pieces can cause confusion, create loopholes, and make the system harder to manage. "To build trust and ensure fairness, the government should develop a clearer, long-term tax strategy based on actual business data and input from all affected sectors. "A more structured system, perhaps reconsidering goods and services tax (GST) with input tax credits, may offer a fairer and more sustainable solution in the long run," he said. On June 27, the government announced a revision to the SST framework, following extensive feedback from the public and engagement with industry stakeholders on the proposed expansion. As part of the revised plan, imported mandarin oranges and dates will be exempted from the sales tax, while essential goods such as rice and local fish will remain tax-free. The service tax registration threshold has been raised to RM1 million for selected sectors, easing compliance for small businesses. The government has also scrapped the proposed service tax on beauty and personal grooming services such as manicures, pedicures, facials, barber services, and hairdressing.
