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BusinessToday
22 minutes ago
- Business
- BusinessToday
Postpone Implementation Of Stamp Duty On Employment Contracts
By Datuk Ir Lawrence Low The implementation of stamp duty on employment contracts by the Inland Revenue Board (LHDN) has caused concern among employers, particularly the small and medium enterprises (SMEs), whose businesses experience high staff turnover rates. While this stamp duty is stipulated and acknowledged under the Stamp Duty Act 1949, and is legally enforceable, we must also recognise that it is placing undue financial burden on businesses, especially SMEs, nationwide. This is further compounded by the recent increase in stamp duties penalties, which have been effective from Jan 1 this year. The sudden implementation, along with a lack of clear information, audit risks and high penalty rates, has placed unexpected pressure on employers, particularly within the SME sector. SMEs are now facing fines of up to 20% of the stamp duty owed or a minimum penalty of RM100 for each contract that is stamped late. With the cost of complying with this new stamp duty, along with the added risk of penalties for backdated employment contracts, a majority of SMEs are feeling the strain. This could cause disruption of business operations, hindering of staff employment and may even affect the salaries of existing employees. Therefore, MCA Economic and SME Affairs Committee urges the government to grant an amnesty period, allowing employers to voluntarily stamp past contracts without facing penalties. We also call on LHDN and the government to provide official guidelines and conduct dedicated briefings or workshops for the SME sector to ensure they are not unexpectedly penalised. Appropriate consideration should also be given to small and micro enterprises within these sectors with lower annual incomes. To add on to this, any future enforcement and implementations should be carried out with adequate notice and clear communication. We recognise the government's need to increase national revenue. However, we urge that this policy be implemented equitably, in a phased manner and with careful consideration of the challenges faced by Malaysians in reality, so as to not impose further strain on an already vulnerable sector. Related
BusinessToday
an hour ago
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Weekly Wrap: Gold Prices Dip Amid Global Market Volatility
Gold prices experienced a modest decline during the week of May 26 to May 30, 2025, influenced by global market dynamics and investor sentiment. In Malaysia, the price of 24-karat gold per gram decreased slightly over the week. This downward trend mirrored global patterns, where gold prices faced pressure due to various economic indicators and geopolitical developments. Bernama reported that physical gold was priced at US$3,312.40 per troy oz as per the London Bullion Market Association's afternoon fix on May 29. Internationally, gold prices were affected by a combination of factors, including shifting geopolitical scenarios and economic policy changes. Analysts noted that ongoing global tensions and economic uncertainties contributed to fluctuations in gold prices. Despite the week's decline, gold continues to be viewed as a safe-haven asset. Investors remain attentive to global economic cues, with many considering gold as a hedge against potential market volatility. Market analysts anticipate that gold prices will continue to respond to global economic developments in the coming weeks. Factors such as international trade agreements, monetary policy decisions and geopolitical events are expected to influence gold's trajectory. Related
BusinessToday
an hour ago
- Business
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Weekly Wrap: Cryptocurrency Market Sees Volatility Amid Corporate Investments and Regulatory Developments
The cryptocurrency market experienced notable fluctuations during the week of May 26 to May 30, 2025, influenced by significant corporate investments and evolving regulatory landscapes. Bitcoin began the week trading at approximately US$109,023 on May 26. Throughout the week, Bitcoin faced downward pressure, closing at around US$103,999 on May 30, marking a decline of about 4.6%. The price fluctuations were attributed to profit-taking activities and broader market sentiment. Ethereum, meanwhile, mirrored Bitcoin's trend, starting the week at approximately US$2,546 on May 26 and closing at around US$2,529 on May 30, reflecting a slight decrease of about 0.7%. The Ethereum market experienced heightened trading volumes, especially during midweek sessions. Notably, GameStop announced a significant investment in Bitcoin, purchasing approximately US$513 million worth of the cryptocurrency. This move aligns with a broader trend of corporations integrating digital assets into their financial strategies. On the other hand, the annual Bitcoin conference in Las Vegas highlighted the increasing intersection of cryptocurrency and politics. Speakers, including members of the Trump family, advocated for crypto-friendly policies, suggesting potential shifts in the regulatory environment. Moving forward, analysts suggest that the cryptocurrency market will continue to respond to macroeconomic indicators and regulatory developments. Investors are advised to monitor upcoming economic data releases and policy announcements that could influence market dynamics. Related
BusinessToday
an hour ago
- Business
- BusinessToday
Weekly Wrap: KOSPI Steady Above 2,600 As Tech Sector Leads Weekly Advance
South Korea's benchmark KOSPI index ended the week of May 26 to May 30 firmly above the 2,600-point level, bolstered by strong gains in the technology sector and improving global trade sentiment. The KOSPI started the week with a sharp rise, surging over 2% on May 26 following the US administration's move to delay tariffs on the European Union. This policy shift eased investor concerns about escalating global trade conflicts and set a positive tone across Asian markets. By midweek, the index climbed to an eight-month high of 2,720.64, before easing slightly to close at 2,697.67 on May 30 due to profit-taking ahead of the weekend. Despite the pullback, the KOSPI managed to post a robust weekly gain and maintain its position well above the psychological 2,600 threshold. Leading the rally was South Korea's heavyweight tech sector, with semiconductor stocks showing particular strength. Market leaders like Samsung Electronics Co Ltd and Sk Hynix Inc drew strong investor interest amid rising global demand for memory chips and optimism surrounding AI-driven infrastructure development. Looking ahead, while sentiment remains broadly positive, analysts caution that external risks including upcoming economic data from the US and China, as well as potential interest rate shifts, could influence short-term momentum. Investors will be watching closely in the coming weeks for signals from the Federal Reserve and updates on trade negotiations, which could determine whether the KOSPI can build on its recent strength or enter a consolidation phase. Related
BusinessToday
11 hours ago
- Business
- BusinessToday
Capital A Records Revenue Of RM5.3 Billion For 1QFY25, PAT Stood At RM194 Million
Capital A recorded revenue of RM5.3 billion for the current quarter (1QFY25) an increase of 1.4% over the corresponding period in 2024. EBITDA for the current period grew 7.2% to RM1.1 billion. The Group recorded a Profit Before Tax of RM 231.4 million as compared to a loss before taxation of RM 249.8 million in 1Q24. Profit After Tax stood at RM194 million—inclusive of RM143 million in one-off expenses relating to non-operating aircraft—to arrive at a 4% PAT margin. Highlights of the Aviation Group: Aviation revenue in 1Q2025 totaled RM4.9 billion, relatively flat Year-on-Year ('YoY') and marginally higher Quarter-on-Quarter (' QoQ'). EBITDA came in at RM980 million, with an EBITDA margin higher YoY at 20% due to an 11% drop in fuel expenses. Depreciation and interest expense costs related to non-operating aircraft amounted to RM143 million. Excluding these, net operating profit ('NOP') stood at RM241 million. Including all items, PAT was RM126 million. Operating cash flow was positive due to overall improvement in the business. Cash flow from investing activities included the purchase of property, plant and equipment and net changes in deposits with licensed banks with a maturity period of more than 3 months and deposits pledged as securities and restricted cash. Cash flow from financing activities for the current year are proceeds from borrowings and net of payment of debt and aircraft lease. Driven by the growth described above, the Continuing Operations reported revenue of RM778.3 million for 1Q25, a 15% increase from the corresponding period last year. Segmentally, the logistics sector contributed 33% of the revenue, MRO services 27% and the online travel platform 16%. The balance 24% was contributed by our brand, inflight and other businesses. The Continuing Operations recorded a positive EBITDA of RM101.9 million in 1Q25, an increase of 24%. Net profit after tax was at RM59.1 million, an increase of RM11.0 million. This improvement included unrealised foreign exchange gains of RM20.6 million, higher brand licence income and improved operating performance across the various segments. Related
