Latest news with #SST-related
New Straits Times
09-07-2025
- Business
- New Straits Times
Six businesses issued notices under Op Kesan 4.0 for suspected profiteering
SERI KEMBANGAN: The Domestic Trade and Cost of Living Ministry has issued six notices under Section 21 of the Price Control and Anti-Profiteering Act 2011 following nationwide inspections as part of Op Kesan 4.0. Its deputy director-general (operations), Shamsul Nizam Khalil, said two companies have agreed to defer price increases and maintain current prices, another two reported that prices were adjusted in line with Sales and Service Tax (SST) implementation, and the remaining two are undergoing engagement sessions. He added that these notices were issued after ministry enforcement teams inspected 375 premises covering 1,698 stock-keeping units between July 1 and 8. Shamsul said this at a press conference after an inspection in Balaji Enterprise Sdn Bhd near Selangor Wet Market today, as part of Op Kesan 4.0. Today's inspections, he said, focused on wholesalers of dry goods and canned food to trace price movements from suppliers to consumers. He said enforcement actions during the operation will assess four key elements: whether the goods or services are on the SST list; whether the businesses exceed the registration threshold with the Customs Department; whether prices shifted for goods produced or imported before the SST came into effect; and whether the new margins suggest profiteering. "Even goods not subject to the SST, such as essential items, are being monitored," he added. Seventeen complaints have been recorded under Op Kesan 4.0 since July 1, Shamsul said, adding that all are under investigation. "Traders with SST-related concerns should consult the ministry. Questions about profiteering should be directed to its enforcement division." Shamsul urged businesses to engage with the ministry on uncertainties surrounding profiteering and SST. "This is to enable us to provide assistance to ensure that the goods being sold are not marked up and are in line with the law." Shamsul warned that individuals found guilty of profiteering face fines of up to RM100,000 or three years' jail, or both, and companies can be fined up to RM500,000. He urged the public to report suspected profiteering through the Enforcement Command Centre (03-8882 6245/6088), WhatsApp, e-Complaint Portal, Ez ADU KPDN mobile app or the ministry's call centre at 1-800-886-800. The expanded SST came into effect on July 1. The changes include higher sales tax on some luxury goods such as king crab, truffle, essential oils, imported fruit and racing bicycles. Essential goods like rice, sugar, milk, cooking oil, medicine and basic construction materials remain exempt under the zero per cent sales tax bracket.
The Star
07-07-2025
- Business
- The Star
Property sector earnings visibility set to improve
Affin Hwang Investment Bank Bhd said it will maintain an 'overweight' stance on the sector. PETALING JAYA: Malaysia's property market is expected to experience a reacceleration in the second half of 2025, says Affin Hwang Investment Bank Bhd. In a report, it said it will maintain an 'overweight' stance on the sector as earnings visibility is set to improve as developers ramp up billings from deferred launches and back-loaded execution. 'While the revised sales and service tax (SST) framework introduces incremental cost pressure, 6% to 8%, our analysis suggests that margin drag remains manageable,' it noted. SST absorption could weigh incrementally on margins for developers with larger exposure to industrial, data centre, or non- Housing Development Act mixed-use products. 'Developers typically pass on SST-related costs via higher selling prices, though weaker markets like offices may see partial absorption to sustain take-up. 'However, we think demand in the industrial and commercial segment should remain strong and enhance pass-through ability, reducing the likelihood of any meaningful margin erosion,' the report said. But it is worth noting that serviced apartments built on commercial land but intended for residential use will be exempted from the 6% SST on construction services. The research house explained the sector is shifting its focus toward industrial monetisation and lease-based recurring income, with developers like Sime Darby Property Bhd (SimeProp) and Eco World Group Development Bhd (EcoWorld Malaysia) benefiting from strong traction in data centre (DC) and custom built facilities) deals. It also said UOA Development Bhd (UOAD) is gaining momentum, supported by healthy sales at well-located projects such as Bamboo Hills. 'We favour developers with active land banking strategies, strong DC land sales, and rising leasing income. 'SimeProp (industrial projects comprise 35% of remaining gross development value) and EcoWorld Malaysia (33%) stand out for their execution consistency and leasing strength,' it noted. Furthermore, the research house said the sector's current share price discount to revalued net asset value is at 41%, nearly a standard deviation below its five-year average. Affin Hwang Investment noted it sees a potential re-rating as the Johor-Singapore Special Economic Zone remains a standout catalyst. A catalyst would be Exsim Group's Causewayz @ Lumba Kuda that achieved full take-up within an hour for phase one. 'EcoWorld Malaysia and SimeProp are best positioned to leverage industrial and data centre demand given strong land monetisation pipelines. 'UOAD now offers a differentiated angle via its Johor RTS-linked project; with average-selling-prices guided at RM1,000 to RM1,200 per sq ft, pricing could be revised upward amid expectations of stronger-than-expected demand,' Affin Hwang explained. Meanwhile, Affin Hwang said while it has a positive view, key downside risks still exist, and include a rise in property overhang adversely impacting demand and product pricing; and labour shortages and rising building material costs, which will lead to higher operation costs.
The Sun
27-06-2025
- Business
- The Sun
MoF exempts beauty services from tax after public feedback
KUALA LUMPUR: The Ministry of Finance (MoF) has decided against extending the Service Tax to beauty services, including manicures, pedicures, facials, and hairdressing, following public feedback. The decision comes after extensive consultations with industry players and grassroots representatives. In a statement today, the MoF clarified that all revisions to the Sales and Service Tax (SST) were made after considering public sentiment. 'Since the June 9, 2025 announcement on SST revisions, the MADANI Government has actively reviewed feedback from the rakyat and engaged with industry stakeholders,' the ministry said. Additionally, imported fruits such as apples, oranges, mandarin oranges, and dates will remain exempt from Sales Tax. Prime Minister Datuk Seri Anwar Ibrahim approved the exemption after evaluating public concerns. The MoF emphasised that essential goods, including rice, poultry, vegetables, and local fish varieties, will continue to be tax-free to ease living costs. To support small businesses, the annual sales threshold for Service Tax registration has been raised from RM500,000 to RM1 million for leasing, rental, and financial services. This adjustment aims to reduce the burden on Micro, Small, and Medium Enterprises (MSMEs). The MoF urged the public and businesses to refer to official announcements for accurate SST-related information. Queries can also be directed to the Royal Malaysian Customs Department's SST Call Centre.
Borneo Post
11-06-2025
- Business
- Borneo Post
Dapsy Sarawak urges delay in SST expansion amid ongoing US tariff negotiations
Wong warns that the combined impact of SST-related cost increases and potential US-imposed tariffs could further strain both businesses and consumers financially. KUCHING (June 11): The Democratic Action Party Socialist Youth (Dapsy) Sarawak has urged the federal government to postpone the implementation of the expanded Sales and Services Tax (SST) until ongoing trade discussions with the United States (US) are concluded. Dapsy Sarawak treasurer Wong King Yii said that while he supports the government's broader objective of expanding the tax base to strengthen national revenue and promote long-term economic growth, the short timeframe for implementation presents significant operational challenges. 'Businesses will struggle, particularly in adapting to new compliance and reporting requirements at short notice,' he said in a statement today. Wong warned that the combined impact of SST-related cost increases and potential US-imposed tariffs could further strain both businesses and consumers financially. 'In this context, a more coordinated and deliberate approach is necessary. 'The government should defer the SST expansion until the tariff negotiations are concluded to avoid unnecessary economic pressure on the rakyat,' he said. Wong also called on the government to revise the exemption threshold for lessees that qualify as micro, small, and medium enterprises (MSMEs). He proposed raising the current RM500,000 annual sales threshold to RM1 million to ensure more MSMEs are shielded from immediate cost burdens. 'This adjustment is vital to help MSMEs weather the financial uncertainties that may result from both domestic tax changes and external trade developments,' he said. DAPSY expanded SST US Tariffs Wong King Yii
