Latest news with #PersatuanPengusahaRestoranMuslimMalaysia
The Star
23-07-2025
- Business
- The Star
Spice & Soul of Malaysia programme happening this month in KL
Feast on the wide array of Peranakan delights at The Saujana Hotel Kuala Lumpur. — The Saujana Hotel Kuala Lumpur Kuala Lumpur is offering visitors not only a taste of Malaysia's diverse culinary cuisines but also a chance to experience traditional performances this month. This is part of Tourism Malaysia's exciting new programme called 'Spice & Soul of Malaysia', which blends food and culture together. It is also one of the many exciting events happening in the run-up to Visit Malaysia 2026. The programme features Malaysia's 'supper culture' – where people frequent F&B outlets, namely coffee shops and food stall, past midnight – and introduces it to visitors via the 'Midnight Supper' initiative. Through this, visitors can experience similar late-night experiences at participating restaurants, specifically those under the Persatuan Pengusaha Restoran Muslim Malaysia (Presma), a Muslim restaurant operator association in Malaysia. One of these restaurants is Saloma Kuala Lumpur, which will operate until 3am this month. You will be treated to dazzling cultural performance at The Saujana Hotel Kuala Lumpur. — The Saujana Hotel Kuala Lumpur Meanwhile, hotels participating in the Spice & Soul of Malaysia programme include ibis Kuala Lumpur City Centre, Hotel Royal Signature, and The Saujana Hotel Kuala Lumpur. Patrons can enjoy cultural shows, special activities and themed menus. According to Tourism Malaysia deputy director-general (Promotion II) Lee Thai Hung, who was at the launch of the programme in KL recently, the country recorded a whopping tourist expenditure of RM106.8bil last year, with the gastronomy sector contributing 16.1% of the total. Data showed a growth of nearly 1% compared to 2023. 'Gastronomy tourism, which offers local Malaysian food experiences, is a popular activity with tourists both locally and internationally,' Lee said at the event. He added: 'Our rich culinary scene is one of the most appealing factors in the country, making it an important component in boosting Malaysia's economy.'
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.
