SST expansion a strategic window for business readiness, says MAICCI Women's Wing Head

KUALA LUMPUR: The expansion of the Sales and Service Tax (SST) beginning July 1, 2025, is seen as a timely and strategic move that provides businesses, particularly women-led enterprises, with the clarity and space to strengthen operations and build long-term resilience.
Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) Women's Wing Head, Dr Hemala AP Sivam, said the government's decision reflects an inclusive and responsive approach to policymaking that balances fiscal goals with the practical needs of the business community.
'This move allows businesses, especially those led by women, to review their operations, reskill their workforce, and realign themselves to meet future demands,' she said in a statement to Bernama today.
Hemala, who is also the food manufacturer APS Manja Sdn Bhd's executive director, said the revised SST framework offers a crucial opportunity for micro, small and medium enterprises (MSMEs), manufacturers and women entrepreneurs to strengthen internal capabilities and prepare for regulatory changes.
'It is a chance to optimise cash flow, invest in automation, and adopt digital tools. For women entrepreneurs balancing both economic and caregiving responsibilities, this period offers the policy clarity and structured space they need to grow sustainably,' she said.
The government will implement the SST revision and expansion starting July 1 to enhance national revenue and broaden the tax base in support of long-term fiscal sustainability.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the Sales Tax rate will remain unchanged for essential goods, while a rate of either five or 10 per cent will apply to non-essential or discretionary items.
The Service Tax will be expanded to cover additional sectors such as rental and leasing, construction, finance, private healthcare, education, and beauty services.
Selective exemptions will be introduced to avoid double taxation and to ensure that essential services for Malaysians are not burdened.
Hemala urged businesses to use the current period to strengthen compliance mechanisms and engage with relevant ministries, chambers of commerce, and entrepreneurial networks to ensure effective implementation.
'This is not just a tax revision, it is a catalyst for dialogue, innovation and strategic transformation. We support the government's efforts to ensure the SST framework remains transparent, equitable, and aligned with national development goals,' she said.
Hemala also stressed the importance of inclusive policies that address the unique challenges faced by women entrepreneurs, particularly in rural and underserved areas.
'With targeted support, digital access and capacity-building initiatives, women-led enterprises can become a vital force in strengthening Malaysia's economic resilience,' she added.

Hashtags

Business

#MalaysianAssociatedIndianChambersof

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

New Straits Times

4 hours ago

New Straits Times

NST Leader: Healthcare burden

Few wage earners, especially Gen Z and millennials, seem concerned about saving for retirement. They view a nest egg as a strange concept, believing it's the the Employees Provident Fund's (EPF) responsibility. Their main concern is current spending, not on big purchases but on daily essentials — utilities, Internet data, rent, food, clothes, transportation and family support. Whatever little left of their monthly salaries goes towards leisurely pursuits. Even with an inflationary economy, these expenditures have bumped Malaysian consumer annual spending by five per cent, reaching RM904.6 billion, according to one study. This heavy spending has driven consumption growth back to pre-Covid-19 levels, supported by a rebounding economy that mirrors previous consumption patterns. Apparently, this RM904.6 billion in spending is still insufficient, especially for significant expenses that monthly salaries can barely cover. This has led to calls for the EPF to expand Account 2 for medical insurance, in addition to existing withdrawals for education, housing and healthcare. Are Malaysians burdened by medical insurance costs? Premiums can range from RM100 to more than RM2,500 monthly, depending on age, health condition, coverage and policy terms. Medical inflation in Malaysia is significant, at a high rate of 12.6 per cent. Consequently, falling ill without insurance is difficult, but hospitalisation — unless it's a government–subsidised facility — is almost unaffordable. Many Malay-sians, preferring smoother and faster admittance, opt for expensive private hospitals even though diagnosis and treatment quality are comparable to public facilities. Given the rising medical and living costs, the demand to widen Account 2 withdrawals is understandable. If approved, this expansion could significantly improve medical insurance coverage and take a big weight off the national healthcare system but it would also inevitably deplete EPF savings, particularly if funds are spent on non-essential or poorly chosen insurance plans, a risk further aggravated by aggressive marketing from health insurance companies. Quantifying the EPF's potential allocation for medical insurance withdrawals is challenging, but it would likely be substantial given that nearly everyone might apply. While previous figures show personal medical insurance coverage among Malaysians ranging from 22 to 45 per cent, a 2024 survey reported that 42 per cent have no coverage at all. If approved, the EPF must set clear guidelines on eligible insurance types and treatments. At the same time, contributors need to understand the long-term trade-offs of prematurely depleting their retirement funds. Ultimately, the quickest way to ensure coverage is to view medical insurance much like rent: costly but necessary. Perhaps Malaysians could redirect some funds from their monthly budget or "unnecessary" spending. Such choices would be difficult. Still, EPF contributors will likely argue that present survival is more relevant than worrying about the future. This perspective stems from an emerging philosophy of "retired but still working", a reality already taking hold.

MSM welcomes Finance Ministry's clarity on SST exemption mechanism for raw sugar

The Sun

5 hours ago

The Sun

MSM welcomes Finance Ministry's clarity on SST exemption mechanism for raw sugar

KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM), the producer of the national refined sugar brand 'Gula Prai', welcomes the timely clarification issued today by the Ministry of Finance regarding the Sales and Service Tax (SST) treatment of raw sugar imports. The ministry's statement today confirmed that while a five per cent sales tax will apply to raw sugar, a key input for refined sugar production, refiners may apply for tax exemptions under prescribed conditions. In a statement today, MSM said that this clarification follows MSM highlighting the potential significant cost pressures arising from the expanded SST regime during its annual general meeting on June 19, 2025. 'The group emphasised that these input cost increases could impact refined sugar pricing, which could in turn push up prices of refined sugar for industrial buyers. 'We appreciate the ministry's prompt attention to this matter and its reaffirmation of a clear pathway for eligible refiners to seek relief,' it said. MSM added that this is particularly crucial given the challenging operating environment, where retail sugar prices have been capped at RM2.85 per kilogramme since 2011 despite substantial rises in global raw sugar costs in recent years.

MSM welcomes MOF clarification on raw sugar SST rules