Latest news with #SalesandServiceTax
Barnama
12 hours ago
- Business
- Barnama
Latest Fiscal Support Measures Positive For Consumer Sector -- CIMB Securities
BUSINESS KUALA LUMPUR, July 23 (Bernama) -- The latest fiscal support measures announced by Prime Minister Datuk Seri Anwar Ibrahim are expected to bolster Malaysia's consumer sector by reinforcing near-term spending, particularly on essential goods and value-based retail, said CIMB Securities Sdn Bhd. CIMB Securities, however, is keeping its earnings forecasts unchanged at this juncture, noting that the measures would underpin existing revenue growth assumptions for the stocks under its coverage. 'Within the consumer sector, we continue to advocate focusing on companies benefiting from inelastic demand for daily necessities and those well-positioned to capture consumer downtrading trends by targeting the mass-market segment,' it said. CIMB Securities highlighted that food and beverage (F&B) manufacturers, such as Nestle, F&N, QL Resources, and Farm Fresh, are likely to benefit from stronger demand for basic food and beverage products, many of which are likely to be eligible for purchase using the RM100 credit. It opined that other retailers such as Mr DIY ('Buy' call), Padini (Buy), Aeon (Buy), Yoong Onn (Buy), Bonia (Hold), Berjaya Food and SEM (Reduce) could see improved footfall and higher spending per customer as disposable incomes increase, amplified by the recent 25 basis points overnight policy rate cut to 2.75 per cent. 'As such, we maintain our 'Neutral' call on the sector. We believe valuations are fair at this juncture, reflecting the ongoing soft consumer sentiment and higher sales tax on discretionary goods, the impact of boycott activities on selected consumer names and cost pressures from the expanded Sales and Service Tax (SST) on rental costs,' it said. Earlier today, Anwar unveiled a new round of fiscal support measures aimed at alleviating living costs, stimulating domestic consumption, and boosting household spending ahead of the upcoming Merdeka Day and Malaysia Day celebrations. Key measures include a one-off RM100 e-credit via MyKad (SARA scheme), doubling the Rahmah Madani Sales programme budget to RM600 million for 2025, a public holiday on Sept 15, 2025, to encourage domestic travel, a toll rate freeze for 2025 and maintaining RON95 subsidies, with the subsidised price to be reduced from RM2.50 per litre to RM1.99 per litre for all Malaysians. -- BERNAMA
New Straits Times
15 hours ago
- Business
- New Straits Times
No excuse for unjustified price hikes under SST, Johor traders warned
JOHOR BARU: Johor Domestic Trade and Cost of Living Ministry launched an enforcement operation to curb profiteering following the implementation of the expanded Sales and Service Tax (SST). The operation codenamed Op Kesan 4.0, is a statewide enforcement blitz, which took effect early this month. State ministry director Lilis Saslinda Pornomo said enforcement officers had conducted checks on 48 business premises involving 235 items, which was carried out under the Price Control and Anti-Profiteering Act 2011. During a walkabout at a supermarket in Larkin Junction here today, Lilis said the 48 premises were issued price information verification notices to obtain detailed data on cost, pricing, and profit margins. "The ministry also received four complaints related to suspected profiteering under the operation, and investigations are ongoing. "The operations main focus is to ensure that businesses do not exploit SST adjustments as a blanket excuse to increase prices without justification," she said in a statement today. The enforcement operation will also monitor four key elements, which includes items and services affected by SST changes, businesses above the SST registration threshold, price movement timelines aligned with SST enforcement dates, and profit margins to detect unreasonable mark-ups. Lilis warned that offenders found guilty of profiteering can be fined up to RM100,000 or jailed up to three years, or both. Companies face fines of up to RM500,000. She urged businesses to assess the four elements before adjusting prices or charges and reminded the public to report suspicious hikes through official channels, including the Ez ADU app, WhatsApp, and the KPDN e-complaint portal.
The Sun
16 hours ago
- Business
- The Sun
Govt monitors food prices post-SST expansion to curb inflation
KUALA LUMPUR: The government will continue monitoring prices of goods, especially food items, to ensure that the cost of living does not increase following the expansion of the Sales and Service Tax (SST) which comes into force this month, said Deputy Finance Minister Lim Hui Ying. She noted that food inflation averaged at 2.1 per cent in June and 2.4 per cent for the January-June 2025 period, higher than the national inflation rate of 1.1 per cent. 'When we implemented the SST expansion, we were already prepared for the impact on food or the rise in the cost of living, but the Ministry of Domestic Trade and Cost of Living will continue to do on-site monitoring of the prices. 'This is because our target for the SST expansion is not to raise prices of goods, especially essential food items, so we promise to monitor (the prices) from time to time to ensure that the cost of living is maintained, especially the prices of essential food items,' she said during the question and answer session in the Dewan Rakyat today. She said this in reply to a supplementary question from Datuk Seri Hamzah Zainuddin (PN-Larut) who asked about the government's efforts to reduce the food inflation rate, including the SST expansion's impact on food price controls. - Bernama
Barnama
17 hours ago
- Business
- Barnama
Govt To Continue Monitoring Food Prices Post-SST Expansion
KUALA LUMPUR, July 23 (Bernama) -- The government will continue monitoring prices of goods, especially food items, to ensure that the cost of living does not increase following the expansion of the Sales and Service Tax (SST) which comes into force this month, said Deputy Finance Minister Lim Hui Ying. She noted that food inflation averaged at 2.1 per cent in June and 2.4 per cent for the January-June 2025 period, higher than the national inflation rate of 1.1 per cent. 'When we implemented the SST expansion, we were already prepared for the impact on food or the rise in the cost of living, but the Ministry of Domestic Trade and Cost of Living will continue to do on-site monitoring of the prices.
New Straits Times
17 hours ago
- Business
- New Straits Times
Govt aware of SST hike impact on cost of living, mechanism in place
KUALA LUMPUR: The government was fully prepared for the potential impact of the expanded Sales and Service Tax (SST) on the cost of living, particularly food inflation, the Dewan Rakyat heard today. Deputy Finance Minister Lim Hui Ying said the Finance Ministry had anticipated inflationary pressures from the SST expansion and had put in place mechanisms to manage its effects. "Indeed, when we implemented the expansion of the SST, we were prepared for any impact and yes, we are aware that food and living costs would rise," she said during the question-and-answer session in the Dewan Rakyat today. Lim was responding to a supplementary question from Datuk Seri Hamzah Zainudin (PN–Larut), who asked about the government's strategies to reduce food prices following the SST expansion. Hamzah, who is also the Opposition Leader, said that while the overall inflation rate of 1.1 per cent in June may appear low, rising food prices were putting real pressure on the public. He also cited state-level food inflation data, which showed increases of 3.3 per cent in Negri Sembilan, 3.1 per cent in Selangor, and 2.9 per cent in Putrajaya. Hamzah also pointed out that the price of mackerel has increased from RM14.80 per kilogram before the SST hike to RM16 in Kuala Lumpur. Commenting further, Lim acknowledged that food inflation remained higher than the national average, even though the overall inflation rate for June 2025 stood at 1.1 per cent. "Certain areas, such as Negri Sembilan, may have recorded higher rates. But based on the overall data we have, the average of food inflation is 2.1 per cent in June and it stands at 2.4 per cent from January to June," she said. She also reiterated that the expanded SST was a targeted measure and that the Domestic Trade and Cost of Living Ministry is actively monitoring food prices to ensure they remain under control. "We do not want food prices, especially for necessities, to increase uncontrollably. "As such, the ministry will continue to monitor prices from time to time to ensure that the cost of living does not rise significantly," she said. Malaysia's inflation rose at a slower pace of 1.1 per cent in June 2025, with the index standing at 134.5 points compared to 133.0 in the same month last year, according to the Department of Statistics Malaysia (DoSM). DoSM's June 2025 Consumer Price Index (CPI) release stated moderation was also reflected in the Producer Price Index (PPI) for local production, which declined by 3.6 per cent in May 2025. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said 59.2 per cent of items, or 339 out of 573, recorded price increases. Nonetheless, of this total, 329 items (97.1 per cent) recorded an increase of less than or equal to 10 per cent, while only 10 items posted increases exceeding 10 per cent in June 2025. The remaining 192 items (33.5 per cent) recorded a decline, and 42 items remained unchanged, he said. DoSM said the food and beverages group, which contributes 29.8 per cent to the total CPI, rose 2.1 per cent in June 2025. Meanwhile, responding to Hamzah's original question on the government's strategy to reduce the burden of the people's cost of living, Lim said efforts to raise the economic floor and ensure improved welfare for the majority of the population despite rising living costs will be continued. Among the initiatives, she said, include the Rahmah Cash Aid and Basic Rahmah Aid, which total RM13 billion in 2025 compared to RM10 billion previously.
