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Borneo Post
3 days ago
- Business
- Borneo Post
Govt urged to reconsider mandatory stamp duty on employment contracts
Tan KOTA KINABALU (June 3): The Sabah Association of Professional Accountants (SAPA) expresses concern over the recent directive by the Inland Revenue Board (LHDN Malaysia) requiring all employment contracts to be stamped in accordance with the Stamp Act 1949. 'While we recognise the importance of legal compliance and revenue collection, SAPA calls on the government to urgently consider exemptions or threshold limits, especially for small and medium enterprises (SMEs),' said its president, Datuk Tan Kok Liang. He said this policy places additional administrative and financial burdens on businesses — particularly in Sabah, where operating costs are already higher due to logistics, geographic challenges, and a more constrained labour market. 'The move to enforce stamp duty on all employment contracts, regardless of salary level or business size, risks creating unintended pressure on SMEs,' he said in a statement on Tuesday. The key concerns are as follows: Disproportionate impact on SMEs: Unlike large corporations, small businesses operate on tight margins. A blanket enforcement adds to compliance costs without proportional benefit. Administrative Burden: The need to process, submit and pay for stamp duty on every employment contract creates extra red tape, especially for businesses with high staff turnover or seasonal employment. Impact on formalised contracts: Over-regulation in the hiring process may discourage small businesses from formalising contracts thus placing employees in rural and semi-urban Sabah into vulnerable position. SAPA's recommendations: Introduce a Threshold Limit: Exempt employment contracts for positions with monthly salaries below a reasonable threshold (e.g. RM4,000), in line with many other tax relief measures. Provide Full or Partial Exemption for Micro and Small Enterprises: Particularly those with annual revenue below RM500,000 or fewer than 10 employees. Phase Implementation with Outreach: This includes sufficient time to meet up with the new requirements and a new implementation date of 1 January 2026 and approach with education and support will ease compliance. SAPA strongly urges the Ministry of Finance and the Inland Revenue Board to engage with industry stakeholders in Sabah and other less-developed states before blanket implementation. Public policy must consider regional disparities, business realities, and the broader objective of stimulating employment and economic growth. 'We are confident that with constructive dialogue, a balanced policy solution can be achieved that protects both the interests of the government and the resilience of our local business community,' said Tan. He added the Stamp Act must be modernised to reflect current practical realities rather than remaining rooted in outdated and regressive approaches. While its original intent and purpose — to provide legal certainty and protect the interests of contracting parties — remain important, these objectives must be interpreted in the proper context. The Act should not be used in a manner that causes undue inconvenience or serves merely as a revenue-generating tool. In the case of employment contracts, for instance, such agreements have long been executed and honored by both employers and employees without issue. This consistent practice demonstrates mutual respect and understanding of contractual obligations, regardless of whether the documents were stamped. Insisting on strict adherence to outdated requirements, especially where there is no dispute between parties, undermines the spirit of the law and creates unnecessary administrative burdens, he pointed out. 'It is time for a balanced approach — one that preserves the protective function of the Stamp Act but updates its application to align with modern business practices and realities' he said. Previous Article UMS water supply sufficient, says Shahelmey
The Star
3 days ago
- Business
- The Star
Sabah accountants urge rethink on stamp duty for employment contracts
KOTA KINABALU: The Sabah Association of Professional Accountants (SAPA) is urging the federal government to reconsider the blanket enforcement of stamp duty on all employment contracts. The group warns that the policy could burden small and medium-sized enterprises (SMEs), particularly in Sabah. While acknowledging the legal and fiscal rationale behind the Inland Revenue Board's directive, SAPA president Datuk Tan Kok Liang stated that the policy must consider the realities of doing business in less-developed regions like Sabah. "This requirement places additional administrative and financial burdens on employers, especially SMEs operating under constrained resources and geographical challenges," he said on Tuesday (June 3). He added that SAPA calls for a more balanced approach by exempting contracts with monthly salaries below RM4,000, offering exemptions to micro and small enterprises, and phasing in the policy with an implementation date no earlier than January 1 next year, alongside stakeholder engagement and educational outreach. Tan noted that the directive risks discouraging small businesses from formalising employment contracts due to overregulation and red tape. "This could inadvertently leave workers in rural or semi-urban Sabah vulnerable and without formal employment protection," he said. He added that while the Stamp Act 1949 was enacted for legal clarity and contractual certainty, its enforcement must evolve. "In practice, employment contracts have been respected by both employers and employees, with or without a stamp. Strict enforcement based on outdated provisions is counterproductive," he said. Tan then said that SAPA believes reforming the Stamp Act to reflect modern business practices is essential to prevent it from becoming solely a revenue collection tool. "We remain confident that through constructive dialogue, a balanced policy solution can be achieved, one that upholds the law while safeguarding local businesses and promoting employment," said Tan.
Barnama
26-05-2025
- Business
- Barnama
ATEX 2025 To Boost Asean Tourism Collaboration In Sabah
KOTA KINABALU, May 26 (Bernama) -- The ASEAN Travel Exchange (ATEX) 2025, slated for June 19 here, aims to strengthen regional tourism cooperation and position Sabah as a premier tourism destination in the ASEAN region. The Sabah Chief Minister's Department, in a statement today, said Chief Minister Datuk Seri Hajiji Noor received a briefing from key tourism industry leaders at Menara Kinabalu here today regarding the upcoming event. According to the president of the Federation of ASEAN Travel Association (FATA), Datuk Tan Kok Liang, ATEX 2025 marks a significant milestone as Sabah's first international Business-to-Business (B2B) tourism event, expecting to attract 200 international buyers and 100 regional sellers.
Daily Express
26-05-2025
- Business
- Daily Express
ATEX 2025 to forge stronger collaborations
Published on: Monday, May 26, 2025 Published on: Mon, May 26, 2025 Text Size: Hajiji presents a memento to Aseanta President Eddy while Joniston (second right), Tan (second left), Nigel (left) and Zamani (right) look on. The ASEAN Travel Exchange (ATEX) 2025, scheduled to be held here on 19 June will bring together regional tourism players to forge stronger collaborations within the ASEAN tourism industry. Chief Minister Datuk Seri Hajiji Noor was briefed on ATEX 2025 by a delegation of high-powered tourism players at Menara Kinabalu today. Federation of Asean Travel Association (FATA) President Datuk Tan Kok Liang said ATEX 2025 will be the first international B2B tourism event to be hosted and is expected to bring in 200 international buyers and 100 regional sellers for trade, dialogue and collaboration in the tourism sector. Supported by the State Ministry of Tourism, Culture and Environment and key tourism organisations, ATEX 2025 is set to be a game changer in positioning Sabah to the forefront of regional and international tourism markets. The delegation comprised of Asean Tourism Association (Aseanta) President Eddy Krismeidi, Federation of Asean Travel Association (FATA) President Datuk Tan Kok Liang, Malaysian Association of Tour and Travel Agents (Matta) President Nigel Wong and Air Asia Director, Global Policy and Government Relations, Zamani Rafique. Joining the delegation was Assistant Tourism, Culture and Environment Minister and Chairman of Sabah Tourism, Datuk Joniston Bangkuai. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
26-05-2025
- Business
- The Star
Sabah to host Asean Travel Exchange 2025, gathering influential tourism players
KOTA KINABALU: Sabah is set to host the Asean Travel Exchange (Atex) 2025 on June 19, which promises to spark fruitful collaborations among Asean tourism industry players. Chief Minister Datuk Seri Hajiji Noor was briefed on Atex 2025 by a delegation of influential tourism players at his office in Menara Kinabalu on Monday (May 26). Federation of Asean Travel Association (Fata) president Datuk Tan Kok Liang said Atex 2025 will be the first international business-to-business tourism event to be hosted. The event is expected to bring in 200 international buyers and 100 regional sellers for trade, dialogue and collaboration in the tourism sector. The state Tourism, Culture and Environment Ministry and key tourism organisations are supporting the Atex 2025. Industry players expect Atex 2025 to be a game changer in positioning Sabah at the forefront of regional and international tourism markets. Among those in the delegation with Tan, who is Malaysian Association of Tour and Travel Agents (Matta) president, were Asean Tourism Association (Aseanta) president Eddy Krismeidi, Nigel Wong and Air Asia director for Global Policy and Government Relations Zamani Rafique. State Assistant Tourism, Culture and Environment Minister and Chairman of Sabah Tourism, Datuk Joniston Bangkuai was also present.
