Latest news with #YKLai
Borneo Post
2 days ago
- Business
- Borneo Post
MICSEA hails stamp duty exemption for pre-2025 employment contracts
Lai says the decision reflects the government's commitment to supporting businesses while ensuring regulatory compliance through proper enforcement. – Bernama photo KUCHING (June 7): The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has lauded the government's move to grant stamp duty exemptions for employment contracts signed before Jan 1, 2025. Its president YK Lai said the decision reflects the government's commitment to supporting businesses while ensuring regulatory compliance through proper enforcement. 'Recognising the high volume of employment contracts between employers and employees that were not stamped as required under the First Schedule of the Stamp Act 1949, the Ministry of Finance, under the leadership of the Madani Government, has decided to grant full stamp duty exemption and penalty waivers for employment contracts signed before Jan 1, under Subsection 80(1A) and Subsection 47A (2),' he said in a statement yesterday. He added that contracts signed between Jan 1 and Dec 31, 2025, will still be subject to stamp duty, but late penalty charges will be waived provided the documents are stamped by Dec 31 this year. Meanwhile, Lai noted that for contracts signed from Jan 1, 2026, onwards under the new Self-Assessment System for Stamp Duty (STSDS), full stamp duty and applicable penalties will be enforced. He said the exemption and penalty waiver for pre-2025 contracts demonstrates the government's sincere commitment to fostering a collaborative environment and ensuring fair enforcement. As such, he urged all employers and human resource professionals to use this opportunity to review and update all employment contracts to ensure full compliance ahead of the 2026 STSDS implementation. lead MICSEA stamp duty exemptions
Borneo Post
2 days ago
- Business
- Borneo Post
MICSEA welcomes e-invoicing exemption for businesses below RM500,000 annual income
Lai says this would give more time to MSMEs to prepare for the implementation of the mandatory e-invoicing system for businesses. – Stock photo from Pixabay KUCHING (June 7): The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) welcomes the government's decision to exempt businesses with an annual income of RM500,000 and below from the e-invoicing requirements. Its president YK Lai said this would give more time to micro, small and medium enterprises (MSMEs) to prepare for the implementation of the mandatory e-invoicing system for businesses. He was delighted that the Inland Revenue Board of Malaysia (HASiL) understands the difficulties MSMEs face in implementing the e-invoicing system, especially due to limited time and insufficient tools in terms of management. 'This change is expected to bring immediate relief to more than 90,000 additional micro and small enterprises, bringing the total number of exempted businesses to approximately 790,000, representing Malaysia's smallest and most vulnerable traders,' he said in a statement yesterday. Lai said MICSEA regarded this as a major step forward in reducing any management burden on MSMEs who may not have the digital infrastructure or resources to handle complicated invoicing requirements. For businesses with an income of RM500,000 and above, he noted that HASiL continues to show leniency by extending the grace period. According to him, businesses earning RM5 million to RM25 million in annual revenue must implement e-invoicing by July 1 this year. 'Businesses with RM1 million to RM5 million in annual revenue now have until Jan 1 next year, while businesses earning up to RM1 million annually will follow suit by July 1 next year.' Even during the extended grace period, Lai believed that employers benefit from greater flexibility as they can continue using consolidated e-invoices for employee reimbursements, client billing, and vendor payments. He said they are not required to issue individual invoices unless requested by the buyer and no enforcement action will be taken under Section 120 of the Income Tax Act 1967, as long as basic consolidated invoicing rules are followed. 'This is a timely and considerate move by the government, and MICSEA fully supports this decision especially as many employers are still recovering from post pandemic financial strain. 'These updated exemptions and deadlines allow more room for businesses to invest in the right tools to manage implementation of the system without the pressure of sudden compliance obligations,' he added. e-invoicing exempt lead MICSEA
Borneo Post
22-05-2025
- Business
- Borneo Post
MICSEA proposes flexible retirement option, warns of challenges
Lai says the government should introduce clear retirement guidelines that take into account the physical demands faced by older workers, particularly in certain sectors. – Bernama photo KUCHING (May 23): The Malaysian Industrial Commercial Services Employers Association (MICSEA) has proposed a flexible retirement framework that allows workers the option to retire earlier or remain in the workforce up to age 65. Its president YK Lai said the government should introduce clear retirement guidelines that take into account the physical demands faced by older workers, particularly in certain sectors. He added that stronger statutory protections are needed to safeguard both younger and older workers to ensure fair treatment across the board. 'Furthermore, we recommend improving hiring strategies for younger workers by providing structured career pathways, while ensuring these efforts do not disadvantage aged employees who choose to remain in the workforce. 'There should also be targeted support for low-income and manual workers, many of whom may not equally benefit from extended employment without proper assistance,' he said in a statement yesterday, in response to the government's recent initiative to study extending the retirement age to 65. Lai noted that with Malaysia's rising life expectancy, many senior employees remain willing and capable of continuing to work beyond the current retirement threshold. However, he stressed that any such change must be supported by proper policy frameworks. He also cautioned against the potential risk of limiting job opportunities for young Malaysians, which could threaten generational equity in the job market. 'Many Malaysians, particularly those in demanding roles, have raised valid concerns that a higher retirement age could impose undue burden on older workers and worsen financial stress among low-income groups. 'For businesses, especially in industrial and service sectors, this proposal introduces complex challenges in workforce planning, occupational health and safety, and employee benefits,' he added. Lai emphasised that a one-size-fits-all approach would not meet the diverse needs of Malaysia's workforce. He urged the adoption of a flexible retirement policy – one that is carefully managed to prevent inequality and ensure long-term sustainability. 'As the voice of employers across Malaysia's industrial, commercial, and service sectors, MICSEA is committed to shaping this transition responsibly and sustainably, should the suggestion to increase the retirement age to 65 be implemented. 'We encourage policymakers, business leaders, and HR professionals to collaborate with the government to design a retirement strategy that is progressive and reflective of the realities faced by Malaysian workers,' he added.
The Star
19-05-2025
- Business
- The Star
Stamp duty on employment contracts burdens businesses, says association
IPOH: The enforcement of stamp duty requirements for all employment contracts is an unnecessary financial and administrative burden impacting businesses, says an employers' association. Malaysian Industrial, Commercial and Service Employers Association (MICSEA) president YK Lai said while they commend the Inland Revenue Board's (LHDN) efforts to strengthen compliance with the Stamp Duty Audit Framework effective from 1 January, the enforcement has caused issues for companies across all sectors. "The growing concerns among employers include financial strain on companies, increased compliance costs, and the added workload on administrative operations, including human resources procedures. "The increasing number of audits of stamp duties without any grace period or amnesty will likely impact companies with high turnover rates and small and medium enterprises (SMEs)," he said on Monday (May 19). "Without clear guidance, these companies risk facing unavoidable penalties. Companies now face the added responsibility of ensuring all employment contracts are stamped at a cost of RM10 per copy, with a penalty of RM100 for non-compliance to ensure admissibility as evidence in court," he added. Lai said employers must also bear the cost of stamping past employment agreements with existing employees that were previously unstamped, increasing administrative expenses while managing tight operational budgets. "This retrospective requirement offers little practical benefit, as many agreements are carried out without disputes or issues. Although employment contracts involving monthly wages below RM300 are exempt from this requirement, the exemption holds little practical relevance given that the current minimum wage in Malaysia is set at RM1,700," he said. Lai said MICSEA supports the Federation of Malaysian Manufacturers' proposed solutions and recommendations on implementing new enforcement methods. "The LHDN should grant a one-time amnesty on past unstamped documents. They also need to issue clear, sector-specific guidelines and introduce a six-to-12-month grace period," he said. "We urge the LHDN to cooperate with employers to ensure fair and balanced implementation," he added.
