Latest news with #SalesandServiceTax
The Star
3 days 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
5 days ago
- Business
- The Star
Stop the blame game, focus on Ops Gasak enforcement issue, Dr Wee tells ministry
JOHOR BARU: The Domestic Trade and Cost of Living Ministry should focus on the real issue regarding the enforcement of Ops Gasak instead of blaming the previous government, says Datuk Seri Dr Wee Ka Siong. The MCA president said this in response to its Minister Datuk Armizan Mohd Ali, who reportedly claimed that the law behind the enforcement, where eateries are required to use 14kg commercial liquefied petroleum gas (LPG) cylinders, was passed when Dr Wee was in the Cabinet. 'The core issue is not about who passed the amendments to the Control of Supplies Regulations in 2021, but how it is being enforced today. 'Yes, the amendment in 2021 was passed while I was part of the Cabinet. "However, up until 2024, there were no large-scale enforcement operations like Ops Gasak that aggressively targeted night markets, stalls, small vendors and food hawkers as it has been done since May 2025,' he said in a statement on Sunday (June 1). Dr Wee added that even the previous Pakatan Harapan government had backtracked on its plan to enforce the law after considering its consequences. 'The Pakatan Harapan 1.0 government in 2019 also attempted to enforce the use of commercial liquefied petroleum gas (LPG) in restaurants and eateries, but they halted the move after realising the burden it placed on the public. 'The existence of a law does not mean enforcement must be harsh or sudden. "Many laws have existed for years, but enforcement is often carried out based on the government's discretion and necessity,' he said. Dr Wee cited the Stamp Act 1949 as an example of such a law, saying that while it has been in force for decades, widespread enforcement on employment agreement stamping only ramped up in 2025. 'Likewise, Ops Gasak, this large-scale enforcement is an administrative decision made by the Madani government in 2025, not a directive from the Cabinet when the 2021 amendment was passed,' he said. Dr Wee, who is also Ayer Hitam MP, said the enforcement burdens small traders at a time when the public is already under pressure. 'The Sales and Service Tax (SST) hike and the expansion of its scope will begin in June, electricity tariffs will increase in July, RON95 subsidies are being retargeted, and the minimum wage has increased to RM1,700. 'All these add to the operating costs of small traders, and Ops Gasak, which targets small traders using only 12kg and 14kg LPG cylinders, further worsens the pressure on the rakyat,' he said. He added that a PETRONAS directive, which quoted the Ministry many times, revealed the real impact of Ops Gasak on small traders. 'In a letter dated April 30, 2025, PETRONAS instructed all gas distributors to stop selling subsidised LPG (12kg and 14kg cylinders) to all commercial premises, including restaurants, food stalls and warung. 'This directive has directly caused confusion, anxiety and hardship to thousands of small traders who now fear enforcement action even though they have only ever used small cylinders. 'On the ground, we continue to see many videos and complaints of inspections on small traders, which contradict the narrative that only large industries are being targeted,' he said. Dr Wee added that Malaysians deserve to benefit from being among the largest gas producers in the world and that LPG subsidies are also not a major financial burden to the country. As of May 1, eateries, including hawker stalls, will be required to use the 14kg purple-coloured commercial gas cylinders priced at RM70.
The Star
5 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.
The Star
6 days ago
- Business
- The Star
Consumers will ultimately pay for eateries' use of non-subsidised gas, says Dr Wee
PETALING JAYA: Consumers will ultimately bear the cost of eateries using liquefied petroleum gas (LPG) for commercial use, which is 170% costlier than subsidised gas for domestic purposes, says Datuk Seri Dr Wee Ka Siong. The MCA president said eateries are required to use 14kg purple-coloured gas cylinders priced at RM70 each, as opposed to the green-coloured gas cylinders meant for domestic use, which cost RM26 each. "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," he said in a video posted on social media on Saturday (May 31). "Who has to bear this price increase? The answer, of course, is consumers," he said. 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 Ops Gasak by the Domestic Trade and Cost of Living Ministry. Dr Wee also said 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 5th 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 asked. As of May 1, eateries including hawkers will be required to use 14kg purple-coloured commercial gas cylinders priced at RM70 each. The ministry also launched Ops Gasak to combat any misuse of subsidised LPG and has made seizures amounting to RM883,000 so far. On May 23, the Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said LPG subsidies have cost the government RM3.4bil and said premises using more than 42kg of LPG (which amounts to three 14kg cylinders) must apply for a permit under the Control of Supplies (Amendment) Act 2021.
The Sun
7 days ago
- Business
- The Sun
Small enterprises decry mandatory commercial LPG use, citing soaring costs: Rosol Wahid
PETALING JAYA: Small business owners, particularly food operators, are facing significant financial strain and enforcement actions following the Madani government's mandate, effective May 1 requiring them to use 14-kilogram commercial LPG cylinders instead of domestic ones. Hulu Terengganu MP Datuk Rosol Wahid said he had received numerous complaints from affected traders. 'They report a nearly threefold increase in monthly costs, from approximately RM2,600 to RM7,000. 'Adding to their woes, authorities have been conducting 'Ops Gasak' raids over the past three weeks, resulting in fines and confiscation of LPG cylinders from many small businesses,' he said in a statement, today. The Perikatan Nasional (PN) MP also expressed deep sympathy for these entrepreneurs, who are already struggling to survive amidst the federal government's perceived failure to address the rising cost of living. He highlighted the additional burdens they face, including the impending expansion of the Sales and Service Tax (SST) in June, the rationalisation of RON95 fuel subsidies in the second half of the year, and an anticipated electricity tariff hike in July. Rosol emphasised that subsidy restructuring should be carried out cautiously, with clear communication and accompanying support incentives, rather than in a hasty manner that victimises the public. Such abrupt changes, he warned, create a domino effect where consumers ultimately bear the brunt of increased costs by businesses. As such, Rosol urged the government to immediately suspend the enforcement of the mandatory commercial LPG cylinder usage until appropriate support incentives are provided for small businesses. He called on the government not to be 'cruel' to the rakyat, stressing the need for a specific plan to alleviate the cost burden on small traders to prevent end-users from facing sudden price increases.
