a day ago
SST expansion helps protect local fruit industry
PONTIAN: The government's initiative to expand the scope of the Sales and Service Tax (SST) by imposing a five per cent sales tax on all imported fruits has been described by pineapple growers in Johor as a proactive move to protect the local fruit industry.
Pineapple farmer Mohammad Anal Talhah, 53, said the initiative would encourage a shift in consumer demand for local fruits with the lower prices, including pineapples, especially for the premium MD2 variety, which is widely grown commercially.
He said the move also sends a 'signal' to growers to expand their plantations to meet rising demand while simultaneously encouraging more young people to venture into agriculture.
'I don't think having more growers would reduce demand — pineapples have never been in oversupply. There is always demand but that demand is somewhat 'dampened' when competing with the price of imported fruits,' he told Bernama at his pineapple plantation in Kampung Parit Haji Osman here.
With over 30 years of experience in the pineapple industry, Mohammad Anal — who started with just 0.4 hectares (ha) growing pineapples and now owns 94 ha — also exports them to other countries, including Singapore, where they are also taxed.
'They impose taxes on us, so why shouldn't imported fruits entering our country be taxed too?' he asked, adding that he could barely keep up with the local and international demand.
Johor is Malaysia's largest pineapple producer, with 10,366.6 ha and a production volume of 280,878 tonnes. This accounts for 63.7 per cent of Malaysia's total pineapple output, valued at RM682.53 million.
Of the total 18,275.71 ha of pineapple cultivation in Malaysia, over 10,000 ha are located in Johor, with Kluang and Pontian districts dominating production.
Ariffin Ali, 51, a grower of Morris and Josapine pineapples from Kampung Parit Haji Alias, said the government's move is viewed as encouraging consumers to switch to more affordable local fruits.
The initiative also positions local produce to be more competitive in terms of pricing, ultimately benefiting farmers and growers.
'In my view, this is the right time to implement the SST expansion. Besides encouraging the use of local products, it can also help farmers and fruit growers to ensure their produce has a place in the local market,' he said.
Meanwhile, MD2 pineapple grower Firdaus Sapari, 39, who cultivates 16 ha in Batu Pahat, agreed that the SST expansion would give local fruit growers 'breathing space' again if demand for local fruits rises.
He said currently, local fruit growers, including pineapple farmers, set prices based on agricultural input costs such as fertilisers, besides other expenses like land rental and labour.
He added that consumers tend to shift away from local options when imported fruits are sold at lower prices. This discourages farmers, who face challenges in continuing crop maintenance due to rising operating costs and market instability.
The Malaysian Pineapple Industry Board chairman Sheikh Umar Bagharib Ali said the expansion of the SST should be viewed positively as a protective measure for the local fruit industry, and giving consumers the alternative to prioritise local products.
'I've been informed that neighboring countries have similar policies in place to protect their agricultural industries, such as imposing high taxes on foreign fruits and agricultural products to develop their domestic agriculture,' he said.
He added that once the SST is imposed on imported fruits, consumers will shift to local options due to lower prices, which in turn would encourage small-scale growers to expand their farms and increase productivity.
Sheikh Umar Bagharib said this positive development would also create a multiplier effect by stimulating downstream sectors like pineapple juice processing, snack production, and pineapple-based cosmetics.
It would not only create job opportunities but also add value to the country's exports.
'Data from the 11th Malaysia Plan (11MP) targeted pineapple farmers to earn RM5,000 per month, but by the end of 11MP, more than 70 per cent had exceeded that target.
'The target is RM8,000 per month under the 12MP, but unofficial data showed that some were already earning more, with some of them earning RM10,000 a month,' he said.
