SME group welcomes LPG permit relief but says retail slump persists [WATCH]

KUALA LUMPUR: The government's decision to exempt small traders from enforcement over the use of subsidised LPG cylinders offers some relief but does little to ease the ongoing retail slowdown, says the Small Medium Enterprise (SME) Association of Malaysia.
Its president Dr Chin Chee Seong said delays in policy clarity, coupled with mounting operational costs, are putting increased pressure on already vulnerable micro and small businesses.
"From day one, this exemption should have been made clear.
"Why wait until the issue escalates and becomes political? The government must act faster," said Chin during an interview with NST's Beyond the Headlines.
On Thursday, the Cabinet agreed that micro and small-scale food and beverage traders may continue using subsidised LPG cylinders without the need for a Scheduled Controlled Goods Permit (PBKB) until October.
The exemption remains in effect throughout the ongoing Op Gasak enforcement period and until amendments to the Control of Supplies (Amendment) Regulations 2021 are finalised.
While supporting the move, Dr Chin called for more structured engagement with stakeholders including associations representing hawkers, eateries, and retailers as well as the association.
"They should collect proper data from the ground before deciding on such regulations. If both sides understand the rationale — how much gas is used, for example — it can reduce friction and ensure smoother policy implementation," he said.
He added that poorly communicated decisions risk being politicised or misunderstood, even if they are not initially intended to target micro traders.
He highlighted the challenging economic environment facing small businesses and noted that retail and consumer spending have been declining since the Chinese New Year period.
This trend, he said, is expected to be reflected in upcoming reports by the Malaysia Retail Chain Association (MRCA).
"At a time when consumer spending is falling and the economy is still in recovery mode, adding more cost pressures or regulatory uncertainty will only make things worse for micro and small businesses," he added.
The government has said that findings from Ops Gasak, which targets the misuse of subsidised LPG by medium and large-scale industrial users, will serve as a key reference for reviewing the regulations.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said a technical committee, chaired by his ministry's secretary-general, will oversee the review and ensure that amendments reflect the specific needs of micro and small-scale food and beverage traders.
Dr Chin, however, noted that unless future regulatory changes are grounded in meaningful consultation with those most affected, such issues will continue to stir controversy and erode business confidence.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Borneo Post

18 hours ago

• Borneo Post

Najib's DNAA another step in his political rehabilitation, says political analyst

Chin believes the DNAA in Najib's final criminal case involving SRC International Sdn Bhd funds amounting to RM27 million marks another step in his ongoing political rehabilitation. MIRI (June 21): The discharge not amounting to acquittal (DNAA) granted to former prime minister Datuk Seri Najib Tun Razak came as no surprise, said political analyst Prof Dr James Chin. The professor of Asian Studies at the University of Tasmania believes the DNAA in Najib's final criminal case involving SRC International Sdn Bhd funds amounting to RM27 million marks another step in his ongoing political rehabilitation. 'A lot of people who have been following this case are clearly not surprised he got a DNAA. The simple reason is the prosecutors have failed to move the case along for the past six years,' he told The Borneo Post when contacted. Chin said public perception of the decision is far more damning, with many interpreting the DNAA as a sign that Najib's rehabilitation is well underway and that the spirit of 'reformasi' (reformation) under Prime Minister Datuk Seri Anwar Ibrahim 'is dead'. He also questioned Anwar's role in the court outcome, saying the public had expected the Parti Keadilan Rakyat president to push through with the prosecution when he took over the helm as Prime Minister in 2022. 'The fact that he has done nothing and allowed this DNAA to move forward, for many people at least, they think there is a political deal and that Najib's political rehabilitation has begun,' he said. He further warned that this latest development could spell trouble for the Unity Government, particularly among Anwar's reform-minded supporters. 'This is a really bad omen for Anwar's government and it puts a lot of people who support him in a difficult position. They support him because they want the reforms, and rather than getting 'reformasi', they get 'reformati'.' 'Reformati' is a derogatory wordplay on Pakatan Harapan's 'reformasi' slogan, meant to suggest the agenda for reform is now dead, or 'mati'. Chin also noted that the DNAA could pave the way for Najib's return to frontline politics – depending on the outcome of GE17. On Friday, the Kuala Lumpur High Court granted Najib a DNAA in the SRC International Sdn Bhd case, with Judge K. Muniandy noted that the trial had stalled since 2019 with not a single witness being called to testify. The judge delivered the decision during a hearing on whether to set new trial dates or grant a DNAA, as previously applied by the defence. Judge Muniandy said the rule of law was applicable to prevent such a detrimental situation whereby an accused person is saddled with criminal charges with no outcome for an indefinite and indeterminate period. dnaa james chin lead Najib

The Star

a day ago

• The Star

Gradual implementation less challenging on businesses, say traders

PETALING JAYA: A phased approach to the expanded Sales and Service Tax (SST) scope could help businesses transition more smoothly, say trade groups. SME Association of Malaysia president Chin Chee Seong proposed starting the rate at 2% for affected sectors. 'If possible, we hope the government reconsiders the implementation, but if it proceeds, it should be progressive. 'A direct 6% or 8% is too high and could lead to cash flow issues, forcing businesses to take bank loans,' he said in an interview yesterday. Chin called on businesses nearing the threshold to register for SST early. 'You can project your revenues. If you hit the mark, you pay; if not, you're still prepared.' He also suggested making authorities more accessible, possibly through an AI chatbot, to assist with queries. Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong also recommended a gradual service tax implementation, starting at 4% instead of jumping to 8%. 'A progressive approach offers a cushion for businesses to adjust,' he said. On the grace periods, Koong said it can be challenging especially for the construction sector. While non-reviewable contracts are given a 12-month grace period, he said most drafted contracts are reviewable. He called for a 36-month grace period for both reviewable and non-reviewable contracts in the construction sector due to the duration of projects and contract complexities. Federation of Malaysian Business Associations vice-chairman Nivas Ragavan said the grace period provides breathing space but compliance requirements must be made clear to avoid confusion or complacency. 'A phased implementation is more SME-friendly and allows for data-driven adjustments if inflation or consumer impact is severe,' he said. Nivas also cautioned that retrospective SST payments could force SMEs to absorb uncollected taxes, suggesting a dedicated helpline or portal to address these concerns. Putrajaya Hawkers and Small Traders Association president Juhaidi Yean Abdullah expressed concerns about consumer impacts. 'While most members haven't met the SST threshold, there is worry over price increases. 'Members would prefer not to raise prices, but the tax expansion might necessitate passing costs to consumers,' he said.

New Straits Times

2 days ago

• New Straits Times

NSTP shines with 13 wins at MPI-Petronas Journalism Awards

KUALA LUMPUR: The New Straits Times Press (NSTP) group took home 13 accolades across various categories at the MPI-Petronas Malaysian Journalism Awards 2024 tonight. The wins were split among NSTP's titles, with four awards going to the New Straits Times (NST), six to Harian Metro (HM), and three to Berita Harian (BH). Harian Metro was the night's highlight, clinching the country's most coveted journalism honour, the Kajai Award. NST's Leslie Andres secured silver in the Best Column Writing category for pieces including 'UN veto power is main obstacle to world peace', 'Mindset shift must accompany any rule change', and 'Western singers skipping Malaysia due to those kicking up a fuss'. In the Best Investigative Journalism category, Aliza Shah from NST won the silver award for her impactful report titled 'Children forced into local pornographic content'. In video journalism, NST received bronze in both the Best Video Documentary and Best Video Talk Show categories. The documentary was produced by Aliza Shah, Iylia Marsya Iskandar, Khairus Ramli, and Amalina Kamal, while the talk show was helmed by Siti Nur Amalina Kamal, Hazween Syarina Md Hassan, Farrah Ain Jasmine Jasman, and Shahrul Redzuan Zulkifli. The ceremony saw over a thousand guests from across the media industry, including editors, reporters and corporate representatives, gather to celebrate excellence in Malaysian journalism. This year's awards attracted 549 entries from 58 media organisations, with honours handed out across 23 categories. The night also marked the launch of MPI's first-ever journalism e-journal by Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir.