Latest news with #SST
Borneo Post
5 hours ago
- Business
- Borneo Post
Call for State autonomy against unfair gas cylinder rules
David Ong KOTA KINABALU (June 4): Liberal Democratic Party (LDP) Vice President David Ong strongly urges the Sabah State Government to exercise its constitutional autonomy and refrain from implementing the Federal Government's new gas cylinder regulations that burden small business operators and the rakyat. Under the new regulation, eateries are required to switch from subsidized household gas cylinders priced at RM26 to commercial purple cylinders costing RM70 — a staggering 169% increase. For small restaurant operators using 100 cylinders per month, this translates into a monthly cost jump from RM2,600 to RM7,000 — a crippling RM4,400 rise. This measure comes at a time when businesses are already struggling with compounding cost pressures from SST hikes, rising electricity tariffs, and the minimum wage adjustment to RM1,700. Ong stressed that Sabah is one of Malaysia's largest natural gas producing States, contributing significantly to the nation's energy wealth. It is fundamentally unjust for the Federal Government to supply gas at higher costs to the very state that produces this resource. Current evidence shows East Malaysian consumers already face price discrimination. Gas cylinder deposits cost RM90 in Sabah/Sarawak compared to RM80 in Peninsular Malaysia – highlighting an ongoing pattern of inequitable treatment. 'We urge the Sabah State Government to utilize its constitutional powers to safeguard the welfare of its people from federal policies that disproportionately affect Sabahans. The State should immediately pursue special arrangements with the Federal Government to secure preferential pricing for gas used in Sabah, just as East Malaysians have been granted continued diesel subsidies in recognition of regional cost differences,' Ong said in a statement. Additionally, he said the State should implement targeted exemptions or support schemes to protect hawkers, coffeeshops, and small eateries until a fair and regionally appropriate policy is established. Sabah inherently faces higher transportation and distribution costs due to its geography and limited supply networks. At the same time, many food operators here earn less than their counterparts in Peninsular Malaysia yet bear higher operational costs, he pointed out. Despite these disadvantages, he said Sabah continues to contribute significantly to Malaysia's gas revenue via royalties and taxes — yet receives no preferential benefit. This disparity must end. 'The burden of rising gas prices will inevitably lead to higher food costs, hurting all Sabahans — particularly low-income families and threatening the viability of small eateries. The timing of enforcement under 'Operation Gasak' is especially insensitive, as it comes during a period of widespread economic strain. 'I call upon the GRS Government to defend the interests of Sabahans by exercising the State's rightful autonomy. Such powers exist precisely to counter federal policies that fail to reflect the realities and challenges of Sabah. 'Sabah must not be punished for being a gas-producing State. We demand fair treatment and urge immediate action to suspend the implementation of these regulations in Sabah until just and practical solutions are put in place,' Ong added.
The Star
a day ago
- Business
- The Star
CIMB Securities cuts KLCI earnings forecasts by 5.6% after weak 1Q
KUALA LUMPUR: CIMB Securities has revised downward its earnings forecasts for FTSE Bursa Malaysia KLCI (FBM KLCI) constituents by 5.6 per cent for both 2025 and 2026, citing widespread underperformance in the first quarter ended March 31, 2025 (1Q 2025). The brokerage said the downgrade was primarily driven by lower earnings projections for the banking sector, Sime Darby Bhd , and Petronas Chemicals Group Bhd . "As a result, CIMB now forecasts KLCI core net profit growth at 3.4 per cent for 2025 and 6.5 per cent for 2026, down from 9.3 per cent and 6.6 per cent, respectively. CIMB Securities has also lowered its end-2025 FBM KLCI target to 1,560 points from 1,657, based on an unchanged price-to-earnings (P/E) multiple of 14.7 times. "The KLCI is trading at a 12-month forward P/E of 12.7 times with an attractive dividend yield of 4.2 per cent, but the upside may be capped by downside risks including the 10 per cent US import tariff, the end of the tariff reprieve on July 9, potential hikes in the Sales and Service Tax (SST) and RON95 fuel prices in the second half of 2025, and higher electricity tariffs expected in July. "These headwinds may be partially offset by strong domestic liquidity, a strengthening ringgit, and policy support from initiatives such as the National Energy Transition Roadmap (NETR), the Johor-Singapore Special Economic Zone (JS-SEZ), and the New Industrial Master Plan 2030 (NIMP 2030),' CIMB Securities said. The brokerage noted that only 7 per cent of companies under its coverage beat expectations in the first quarter, while 64 per cent missed, pulling the earnings surprise ratio down to 0.24 times, the weakest showing since the second quarter of 2020. It attributed the underperformance to lower-than-expected net interest margins for banks, weaker earnings in the oil and gas, consumer, and technology sectors, along with higher effective tax rates and foreign exchange losses. In terms of sector positioning, CIMB downgraded oil and gas and plantations to "neutral' from "overweight' due to a lack of near-term catalysts. It downgraded Petronas Chemicals Group Bhd and Sime Darby Plantation Bhd to "hold' from "buy.' Despite the cautious tone, the brokerage maintained its overweight stance on telecommunications, utilities, and construction. It added Maxis Bhd , IJM Corp Bhd , and IOI Corp Bhd to its top large-cap picks, alongside existing names such as CelcomDigi Bhd, Gamuda Bhd , Public Bank Bhd , RHB Bank Bhd, Tenaga Nasional Bhd , and 99 SpeedMart. In the small- and mid-cap space, Axis Real Estate Investment Trust (REIT) has been added to its list of recommended stocks, joining Malaysian Resources Corporation Bhd (MRCB), KJTS Group Bhd , Farm Fresh Bhd , and Mah Sing Group Bhd . - Bernama
The Star
3 days ago
- Business
- The Star
Oil output increase a potential bane
PETALING JAYA: Corporate Malaysia's fiscal position may come under pressure if the Organisation of the Petroleum Exporting Countries and its allies (Opec+) decide to further open the taps to boost oil output. Although Opec+ has agreed for now to keep its output policy unchanged, analysts opined that another production increase of 411,000 barrels per day in July is likely, matching the additional output in May and June. If the increase in oil output further gains momentum this year, it could put a strain on Malaysia's oil and gas (O&G) export earnings as the country is a net exporter of O&G, which could in turn impact its fiscal position and fiscal consolidation initiatives. The lower oil prices coupled with US tariffs and global recessionary risks are seen as hurdles in Malaysia's fiscal consolidation landscape. The government's oil price assumption for Budget 2025, announced last October, was set at US$75 to US$80 per barrel. As at press time, the international benchmark Brent crude was down by 0.35% to US$61.88 per barrel. Fiscal consolidation refers to government policies aimed at reducing deficits and debt accumulation. It involves measures to balance government revenue with expenditure, minimising deficits, controlling public debt, and promoting sustainable economic growth. Economist Anthony Dass told StarBiz that an increase in oil supply by Opec+ can add downward pressure on global crude oil prices. He said Malaysia, as a net exporter, would experience a direct impact from a loss of revenue. 'While the exact scale of the Opec+ increase is still under discussion, potentially around 411,000 barrels per day in July, with more unwinding of cuts by November, any significant addition to supply, especially if it outstrips demand growth, will negatively impact Malaysia's O&G export earnings. 'Looking at the petroleum-related revenue, for every US$10 per barrel drop in oil prices, it is estimated to reduce federal revenue by RM2bil to RM3bil. 'Should global recession drag Brent crude down to US$65 to US$70 per barrel versus (the) US$80 to US$85 baseline, there would be a drop in petroleum-related revenue,' said Dass, who is the senior economic adviser at KSI Strategic Institute for Asia Pacific and a member of the SME Association of Malaysia's National Council. The government aims to reduce its fiscal deficit from 5% of gross domestic product (GDP) in 2023 to 4.3% in 2024 and 3.8% in 2025. Dass is projecting Brent crude to hover at US$60 to US$65 per barrel this year. HSBC Asean economist Yun Liu said the current oil price is lower than the government's oil price assumption of US$75 to US$80 per barrel as announced in Budget 2025 last October. She said this may raise questions on energy-related revenue. 'But there are still a lot of moving parts of the fiscal consolidation plan. For example, we are still waiting for clarity on the sales and service tax (SST) expansion plan. 'It has reportedly been delayed for a month, so eyes are on any concrete plans to implement it. The other elephant in the room is the RON95 subsidy rationalisation. 'When and how it will be implemented will impact this year's fiscal plan,' Liu said. HSBC chief economist for Australia, New Zealand and global commodities Paul Bloxham said he expects the oil price to be on a downward trajectory, with a forecast average of US$68.50 a barrel in 2025 and US$65 a barrel in 2026. That said, he said he sees the upcoming Opec+ meetings as a downside risk to these forecasts, with a high chance that another accelerated supply hike will be announced for July. 'A key driving force for these decisions is expected to be lack of compliance with current quotas by some of the smaller Opec+ producing countries. 'The Opec+ members have also been encouraged by recent announced cuts to capital expenditure by US shale producers, and are expected to continue to aim to gain market share by putting downward pressure on prices. 'There are limited upside risks to the demand for oil, with the key challenge being the global economic slowdown that is underway due to the trade policy shock. 'The upside risks are mostly related to possible supply shocks. These include potential disruption to supply from Venezuela and Libya, and risks of a rebound in supply from Iran, given the risk that an Iran-US nuclear deal does not arrive,' Bloxham noted. Juwai IQI global chief economist Shan Saeed said with Opec+ increasing output, global oil prices might face downward pressure in the short run and recover sooner than expected. He said Malaysia relies significantly on O&G earnings for its fiscal plans and can move smartly to generate revenues from other sources. Increasing the GDP size is a proven strategy to enhance the revenue base and consolidate the fiscal position to bolster the balance sheet of the government, he said. 'We expect Brent crude oil prices to move into two phases in the short and long run. In the short run, we expect the price to be around US$64 to US$67 per barrel. 'However, in the long run it is expected to trade at US$77 to US$83 a barrel based on a few factors. 'They include geopolitical risks, US dollar debasement, supply disruption from shale gas myth, and Opec+ production cuts,' Shan noted. US dollar debasement means the depreciation of the dollar due to the Federal Reserve (Fed) cutting interest rates. Shan anticipates the Fed will start cutting rates from July of this year onwards. He said the greenback has already depreciated 8% year-to-date, and foresees it to further depreciate upon the Fed cutting rates. Malaysia, according to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, has been recording trade deficits in crude oil for the past three years. Last year, he said the trade deficits stood at RM37.1bil on the back of total exports and imports of RM26.1bil and RM63.2bil respectively. 'On that note, the contribution from O&G-related revenue to the government is going to be increasingly challenging. Not to mention that Petroliam Nasional Bhd may also need to allocate more capital expenditure for developing the renewable energy space and its overseas investments. 'In a nutshell, the government's revenue stream is expected to be more challenging, leading to more discussion to have other revenue streams to ensure the sustainability of the government finances,' he said, adding that he is projecting on the average for Brent crude to be at US$67 to US$68 per barrel for 2025. Mohd Afzanizam said on the whole the government has done well in managing its fiscal position. The first quarter of financial year 2025 (1Q25) fiscal deficits have been narrowed to 4.5% of GDP from 5.7% in the same period last year, he said. The upward revision in the service tax from 6% to 8% on March 1, 2024, has led to a 30.3% growth in SST collection in 1Q25 and the diesel subsidies rationalisation on June 10, 2024, has resulted in the decline of subsidies and social assistance expenditure from RM16bil in 1Q24 to RM12.9bil in 1Q25, he said. 'I suppose the fiscal consolidation momentum needs to be maintained and the communication will always need to be improved in general in order to get the total buy-in from the masses. 'It's also about the mechanism where it should be easily implemented where the general public can see the positive outcome almost immediately,' he said. OCBC Asean economist Jonathan Ng said the bank has revised its 2025 oil price forecasts downward, with West Texas Intermediate and Brent crude projected to average US$63 per barrel and US$67 per barrel respectively – about US$13 per barrel lower than the average oil prices in 2024. He said the reasons for the downward revision are predicated on slowing global economic growth amid uncertainties in global trade policies and higher-than-expected oil supplies from Opec+ countries. As to the positive growth drivers for the oil market this year in the current environment, Ng said an escalation in geopolitical tensions in Eastern Europe (for example, the Russia-Ukraine war) and the Middle East could lead to the implementation of further sanctions on the Russian and Iranian energy sectors. As a result, he said the supply disruptions are likely to support higher oil prices in the short-term, given the reconfiguration of trade flows. To strengthen the government's fiscal position in the short term Dass said, among others, there is a need to accelerate targeted cash aid for vulnerable groups and micro, small, and medium enterprises, fast-track high-multiplier development projects (especially in digital, green, and transport), and improve targeting of fuel subsidies to reduce fiscal leakage. Over the medium term, he said the government needs to continue fiscal base broadening: e-invoicing and subsidy rationalisation, maintain fiscal discipline to avoid rating downgrades (currently A–/A3 with stable outlook), and reaffirm fiscal consolidation roadmap and medium-term fiscal framework. To boost Malaysia's revenue and have a better grip on its fiscal consolidation, HSBC's Liu said the country should consider raising the tax coffers. 'Its tax receipts amounted to around 12% of GDP, lower than those of peers, so there's still the potential to raise the tax coffers. 'In the absence of a reintroduction of the goods and services tax, the tax tweaks and measures are necessary to boost fiscal coffers,' she said.
Time of India
3 days ago
- Politics
- Time of India
Committee set up in Ludhiana to handle election seizures
LUDHIANA: In view of the upcoming Ludhiana West by-election and following the instructions in the Standard Operating Procedures (SOPs) issued by the Election Commission of India, the district administration of Ludhiana has constituted a four-member committee. This committee is tasked with handling cases related to the seizure of cash and other materials by flying squad teams (FST), static surveillance teams (SST), and excise teams to strictly enforce the Model Code of Conduct, according to an official statement. As per the statement, Additional Deputy Commissioner (Rural Development) Amarjit Bains has been appointed as the chairman of the committee. District Treasury Officer Arun Kumar , ACFA Rakesh Kansal, and SO Shivinder Singh are its members. The statement further explained that, as per guidelines issued by the Election Commission of India (ECI), the committee will make decisions regarding the seizure and release of cash and other items confiscated during checks to avoid inconvenience to the general public. Election officials stated that the committee would examine each case of seizure by the police, FST, and SST on its own initiative. Upon confirming that the confiscated material was not linked to any political party or candidate, the committee would issue orders for the release of such seizures. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDs กับโบรกเกอร์ที่เชื่อถือได้ | เรียนรู้เพิ่มเติม IC Markets สมัคร Undo They added that if a concerned person presented any proof legitimising the seizure, the committee would decide on the release of such cash or other impounded material. Notably, carrying up to Rs 50,000 in cash requires no documentation. However, amounts between Rs 50,000 and Rs 10 lakh must be accompanied by valid proof, while cash exceeding Rs 10 lakh, even with documentation, will be reported to the Income Tax Department for further scrutiny by the seizing teams.
The Star
4 days ago
- Business
- The Star
Get ready to pay more at eateries
PETALING JAYA: Consumers will ultimately have to bear the cost as all eateries, including hawker stalls, are now required to use the 14kg commercial liquefied petroleum gas (LPG) cylinders, says Datuk Seri Dr Wee Ka Siong (pic). The MCA president said the use of the commercial cylinder is costlier by 170% compared with the household subsidised gas cylinder sold at just RM26. He said the cost of preparing food will be directly affected with the increase in the price of gas. 'What does the 170% increase have to do with the cost of living? 'If you want to eat rice or noodles, you have to cook it first. To cook, you need fire. For fire, you need gas. If the price of gas goes up, then the price of food will also go up. 'Who has to bear this price increase? The answer, of course, is consumers,' said the Ayer Hitam MP in a video posted on social media yesterday. He added that traders also need a permit if they use more than three 14kg LPG cylinders a month, and failing which, are subject to action under Op Gasak by the Domestic Trade and Cost of Living Ministry. According to Dr Wee, there was no need to be too strict on small-time food vendors who barely earn enough to make ends meet. He questioned why the government is unable to provide subsidies to small traders despite being the world's fifth largest exporter of liquefied natural gas. 'What is the point of billions of investments if we cannot cover gas subsidies, said to be RM3.4bil in 2024? 'What is the point of increasing the Sales and Service Tax (SST) rate from 6% to 8% if the revenue collected is not returned to the people through subsidies?' he added. As of May 1, eateries, including hawker stalls, will be required to use the 14kg purple-coloured commercial gas cylinders priced at RM70. The ministry also launched Op Gasak to combat any misuse of subsidised LPG and has so far made seizures amounting to RM883,000. On May 23, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the LPG subsidy cost the government RM3.4bil. He said that premises using more than three commercial gas cylinders must apply for a permit under the regulations of the Control of Supplies (Amendment) Act 2021. The government had planned the switch to commercial gas in 2019 but postponed its enforcement.
