Heed BNM's wage reform call before expanding SST, urges ex-DAP MP

Former DAP MP Charles Santiago has urged Putrajaya to take heed of Bank Negara Malaysia's urgent call for wage reforms before expanding the scope for the Sales and Service Tax (SST).
Charles referenced the central bank's deputy governor Marzunisham Omar's remark that controlling inflation alone is insufficient to alleviate cost-of-living pressures, as stagnant wage growth remains a concerning issue.
"Is Bank Negara sending...

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Malaysiakini

an hour ago

• Malaysiakini

SST: Firm welcomes govt's clarification on exemption mechanism for raw sugar

MSM Malaysia Holdings Bhd (MSM), the producer of the national refined sugar brand Gula Prai, welcomes the timely clarification issued today by the Finance Ministry regarding the sales and service tax (SST) treatment of raw sugar imports. The ministry's statement today confirmed that while a five percent sales tax will apply to raw sugar, a key input for refined sugar production, refiners may apply for tax exemptions under prescribed conditions...

The Star

an hour ago

• The Star

Property portfolio, data centres to lift SimeProp

CGSI Research said there would be a number of income streams for SimeProp. PETALING JAYA: Sime Darby Property Bhd 's (SimeProp) accelerating growth on the back of recurring income from the significant expansion of its investment property portfolio has CGS International Research (CGSI Research) reiterating its 'add' call on the stock with an unchanged target price of RM1.90. CGSI Research said there would be a number of income streams for SimeProp, including the recent acquisition of two double-storey logistics warehouses in Bandar Bukit Raja in Selangor that cost RM232mil. The research house said it estimates that the acquisition could contribute between RM7mil to RM8mil in net profit annually, assuming there is a 7% net property income yield. 'Furthermore, we gathered from management during the first quarter (1Q25) results briefing that the group has retained some of their commercial and industrial units to lift rental income,' the research house said. Among them is the KLGCC Mall in Kuala Lumpur that is set to open to the public in the second half of this year (2H25), further boosting the group's portfolio of retail assets. The property developer's commencement of built-to-lease data centres at Elmina Business Park in Selangor is also set to boost recurring income from next year (FY26) onwards. 'Phase one and two of the data centre assets are on track for completion by end-FY26 and 1H27, respectively. We project the investment property portfolio to contribute about RM119mil in net profit by FY27, making up 11% of the group's net profit,' CGSI Research said. However, the research house expects SimeProp to be negatively affected by the 6% sales and service tax (SST) on construction services, as it directly leads to higher construction costs for its commercial and industrial products. On a more promising note, construction as well as rental and leasing services for residential buildings, which account for over 50% of SimeProp's sales are exempted under the expanded SST, thus limiting the overall impact. This could result in SimeProp's profit margins remaining intact in the short term. 'Nevertheless, we do not rule out the risk of softer sales in its commercial and industrial segments as elevated property prices may temper buyer sentiment, potentially leading to deferred purchases or weaker property demand,' CGSI Research said. The research house said following a weaker 1Q25 for SimeProp, it now continues to anticipate stronger quarterly earnings for the group for the rest of FY25 as progress billings pick up pace. 'The valuation has also reverted to a palatable FY26 price-earnings of 15 times, which we deem compelling given the encouraging FY25 to FY27 earnings growth trajectory,' it said. The research house added downside risks include wider losses from the Battersea Power Station development in Britain and slower property launches, while re-rating catalysts were stronger sales growth and further expansion of SimeProp's data centre business. SimeProp's shares closed at RM1.42 in yesterday's trading.

New Straits Times

an hour ago

• New Straits Times

News@9: Today's top headlines - June 20, 2025 [WATCH]

Here are today's biggest stories. New top cop Datuk Seri Mohd Khalid Ismail will take over as Inspector-General of Police on June 23, succeeding Tan Sri Razarudin Husain. The Selangor, Kuala Lumpur, Penang and Kedah police chiefs will take on new roles at Bukit Aman as part of a major reshuffle in police leadership. Refined sugar will remain exempt from the revised Sales and Service Tax, the Finance Ministry said today. Najib gets DNAA Former prime minister Datuk Seri Najib Razak has been granted a DNAA over three money laundering charges, after the prosecution failed to furnish the defence with hundreds of documents. That's it for News@9.