Latest news with #MRCA
Malaysiakini
10 hours ago
- Business
- Malaysiakini
Retailers flag cost burden from expanded SST, seeks postponement
The Malaysia Retail Chain Association (MRCA) has cautioned that the expanded sales and service tax (SST) affecting commercial rental is likely to see consumers forking out more for higher price tags. The group also urged Putrajaya to postpone implementing the eight percent SST on rental and leasing services. The association said that while it understands the...
The Star
14 hours ago
- Business
- The Star
SST on commercial rental will impact retail sector, says MRCA
PETALING JAYA: The Malaysian Retail Chain Association (MRCA) has called on the government to postpone the implementation of the 8% sales and service tax (SST) on rental and leasing services, due to come into effect on July 1. MRCA said while it recognises the government's intention to broaden the national tax base and enhance fiscal sustainability through targeted measures, extending SST to commercial rental presents considerable challenges to retailers operating physical outlets. ALSO READ: Expanded SST comes into effect July 1 "The additional cost burden comes at a time when many businesses are already contending with rising operational expenses, including minimum wage adjustments, stamping of employee contracts and heightened regulatory compliance," it said in a statement on Friday (June 20). "In the context of the supply chain from manufacturers and distributors to retailers, the increased cost of doing business is expected to translate into higher end prices for consumers," it added. ALSO READ: Expanded SST will add RM5bil to national coffers in 2025, RM10bil in 2026 MRCA said retailers across the board may find it increasingly difficult to absorb these additional expenses, particularly with a weaker consumer sentiment amid expectations of gradual government subsidy removal. MRCA said it will continue to engage with the Finance Ministry and relevant agencies to ensure that policy implementation remains balanced, transparent and conducive to the sustainable growth of the retail sector.
New Straits Times
4 days ago
- Business
- New Straits Times
Business groups warn SST hike risks derailing economic recovery
KUALA LUMPUR: Malaysia's leading business and retail associations are calling on the government to defer the upcoming expansion of the Sales and Service Tax (SST), set to take effect on July 1, 2025, citing serious concerns about its potential impact on the country's still-recovering economy. In a joint statement, six major associations urged the government to reconsider the proposed 8 per cent SST on commercial rental and leasing services, which they warn could trigger inflation, harm small and medium enterprises (SMEs), deter investment, and dampen consumer confidence. "As the collective voice of Malaysia's business and retail sectors, we recognise the importance of fiscal consolidation; the timing, magnitude, and scope of this tax measure are gravely misguided. The policy, in its current form, threatens to undo the very economic progress we have painstakingly rebuilt over the past two years. "Worse still, this move sends the wrong signal to domestic and foreign investors, raising doubts about policy consistency and the government's commitment to fostering a business-friendly environment." The statement was issued by the SME Association of Malaysia, the Malaysia Retail Chain Association (MRCA), the Malaysia Retailers Association (MRA), the Bumiputra Retailers Organisation Malaysia (BRO), the Malaysia Shopping Malls Association (PPKM), and the Federation of Malaysia Business Associations (FMBA). "Collectively, our six associations represent tens of thousands of businesses and millions of workers across Malaysia. We strongly urge the government to pause and reassess the current path of the SST expansion, particularly the rental and leasing component, which is poised to unleash inflationary pressure, disrupt business sustainability, and strain the rakyat. "The business community stands ready to support national fiscal goals, but such goals must be achieved through fair, practical, and inclusive policymaking. We call on the government to act decisively, responsibly, and in the national interest before irreversible damage is done to the economic ecosystem that supports jobs, innovation, and long-term growth.' The statement highlighted that many businesses across key sectors, including retail, F&B, logistics, manufacturing, healthcare, and education, are already grappling with a sharp rise in operating costs, including a minimum wage increase from RM1,500 to RM1,700, diesel subsidy rationalisation that caused a 55.8 per cent jump in fuel prices, higher electricity and gas tariffs, and new stamp duties and levies. Additional burdens such as mandatory e-Invoicing, an extra 2 per cent EPF contribution for foreign workers, rising raw material prices, a weaker ringgit, and elevated interest rates are also straining business sustainability, particularly for SMEs that lease their premises. Adding an 8 per cent SST on rental and leasing services will significantly raise operational costs for SMEs and retailers, particularly those who lease their premises. Ultimately, this burden will be passed on to consumers, fuelling inflation and weakening household spending power, the associations warned. They also cautioned that the rising cost pressures may force many small businesses to downsize or shut down, triggering a wave of closures, job losses, and a deeper slowdown in domestic economic activity. "Such volatility could directly impact Malaysian exporters, especially SMEs that are part of global value chains, and further erode export competitiveness, placing additional strain on revenue and jobs." On the global front, the groups pointed to growing trade uncertainty, particularly the potential return of US tariffs, which could further undermine Malaysia's export competitiveness, especially for SMEs integrated into global value chains. The associations argued that the current SST framework lacks the transparency and efficiency of the previous Goods and Services Tax (GST) system, which allowed for input tax credits and avoided cascading taxation across supply chains. Under SST, costs pile up at every stage, leading to higher prices for goods and services. For SMEs operating on thin margins, this model is unsustainable and discourages reinvestment, expansion, and job creation, they said. While acknowledging the flaws of the former GST, the associations reiterated their support for a reformed version, which many in the business community view as a more equitable and growth-friendly tax system. GST enabled businesses to claim input tax credits and enhanced overall tax administration efficiency, they said. Many local and international businesses have since advocated for the reinstatement of a reformed GST, rather than continued reliance on the regressive SST model, which they say hampers competitiveness and economic growth, the association said. "We strongly urge the government to take into serious consideration the genuine hardships currently faced by businesses, especially in these challenging economic times. It is imperative that any tax policy or adjustment be approached with empathy and practicality, with the aim of ensuring that it does not become an added burden on already struggling enterprises," the statement concluded. The associations called for a more consultative approach to tax reform that prioritises business sustainability, national competitiveness, and long-term growth.
The Star
29-05-2025
- Health
- The Star
Women's retreat builds resilience
The two-day retreat includes a mindfulness walk at Taman Tasik Permaisuri with a focus on the five senses. — Low Lay Phon/The Star A retreat in conjunction with Mental Health Awareness Week 2025 brought together nearly 100 women from various backgrounds to recharge and inspire one another. Held in Komune Living and Wellness in Bandar Tun Razak, Kuala Lumpur, 'Enliven Women 2025' was organised by online-based programme Yoga for Mums. Among the women who benefitted from the overnight retreat was Maisarah Hanum Abd Latib, 40, from Flat PKNS AU2, Taman Keramat in Ampang, Selangor. 'During the mindfulness walk, I walked in silence, observing only what was around me,' the home-based tailor and single mother of five told StarMetro. 'As a busy mother, this gave me space to breathe and reflect, bringing calmness to my mind.' Her fellow participants included B40 mothers, homemakers, working professionals and young corporate employees. Through mindfulness and self-discovery in an emotionally safe space, the women were able to connect, recharge and support one another. For Maisarah and her fellow B40 mums, the retreat was a form of support by social enterprise Thrive Well that seeks to provide trauma-informed mental health services to underserved groups. Chua: Retreat aims to encourage all women to live the best life they can. Thrive Well clinical coordinator Hani Adriana Azman said retreat participants included nine B40 women from Flat PKNS AU2 and PPR Seri Semarak in Kampung Baru Air Panas, Kuala Lumpur. 'These women have completed our basic, advanced and ambassador-level programmes. 'At the ambassador stage, they are able to support mental health peers within their own communities,' she said. Certified mindfulness coach and Yoga for Mums founder Caleen Chua Yen Keng said the retreat was aimed at encouraging women to live the best life they could. Chua also guided participants during a 10-minute silent mindfulness walk at nearby Taman Tasik Permaisuri where they focused on their five senses and let go of judgement. 'In that silence, we uncover our own strength, resilience and calm,' she said. The retreat featured structured sessions including the life wheel workshop, lunch, a mindful eating session, a personal vision workshop, and group reflection and sharing. The initiative was endorsed by Women, Family and Community Development Ministry alongside Malaysia Retail Chain Association's (MRCA) women division. MRCA women division chief Aiveen Wong said the division's tagline 'Empower women, build nation' reflected the movement towards women's empowerment nationwide. 'Today, more women are stepping into the workforce with confidence and ambition,' she said. 'This retreat is about discovering that inner strength and helping each other grow. 'In 2023, women made up nearly half or 15.9 million of Malaysia's population of 33 million. 'That's more than a number, it is a sign of strength, resilience and potential,' she added. Wong said 219,000 females were born that year, representing the country's future women leaders. The event was supported by corporate and brand sponsors.
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India.com
27-05-2025
- Business
- India.com
World Turns Cold On Su-57E: Will India Still Consider To Buy Russia's ‘Stealth Beast'?
New Delhi: Su-57E - Russia's fifth-generation stealth fighter - is under scrutiny once again. No country across the globe seems to be interested acquiring the fighter jet despite Moscow's consistent efforts to sell it to countries such as India, Algeria and Malaysia. Rosoboronexport, a Russian defence firm, said that it would put on display the aircraft at the LIMA 2025 International Maritime and Aerospace Exhibition in Malaysia. However, the fighter jet, as reported by the media, never made it to the exhibition. In an absence that raised many eyebrows, only a scale model of the jet was showcased at a booth of the United Aircraft Corporation (UAC) in the Malaysian exhibition. Malaysia's indifference towards Su-57E in its Multi-Role Combat Aircraft (MRCA), India's exit from the Fifth Generation Fighter Aircraft (FGFA) programme and the fighter aircraft's absence at LIMA 2025 all narrated the same saga - the Russian "Felon" is likely to turn out are a big "failure". Let's understand the Su-57E. It is an export variant of Russian Su-57 fighter jet, which is a fifth-generation stealth aircraft that is armed with cutting-edge missile systems and designed for multi-role operations and radar evasion. It is capable of carrying long-range air-to-air missiles such as R-37M and can strike targets up to 400 kilometres away. Without disclosing the name of the country, a confident Russia had earlier claimed that the first buyer of the jet would start operating it by this year (2025). Algeria was seen as the possible acquirer. But neither the countr nor Russia has so far confirmed the deal. Why is Malaysia delaying its fighter jet programme? Began in 2009, Malaysia's MRCA programme is aimed at replacing its aging MiG-29s. Earlier, the programme featured jets such as Boeing F/A-18 Super Hornet, Saab Gripen, Dassault Rafale and Eurofighter Typhoon, but the country's focus in recent years seems to have turned towards acquiring fifth-generation or near-fifth-generation fighter aircraft. Malaysia, despite this apparent shift, has not so far made any final decision. As a result, the role of Su-57E remains uncertain. Russia's Continued India Push Meanwhile, Russia continues to try pushing India to buy the Su-57E even after the latter's withdrawal from the FGFA project in 2018. India exited from the project, as reports suggest, because of unsatisfactory performance of the fighter jet and its high cost. Russia apparently has not given up and continues to pursue the deal. It is seeming attempting to capitalise on India's rising need for advanced fighter aircraft. Russia offered India a "Golden Deal" during Aero India 2025 - a mega aerospace and defence exhibition organised at Bangaluru's Yelahanka Air Force Station from February 10 to 14. Moscow offered New Delhi prompt delivery of Su-57E's, its local production in India and assistance in India's indegenous fifth-generation fighter aircraft program (AMCA). Moscow also told India that if it accepts the deal, Indian firms manufacturing the Su-30MKI can soon begin producing the Su-57E. New Approach Post Pakistan Conflict Following recent exchange of firepower with Pakistan in response to the April 22 deadly terror attack on tourists at Baisaran meadows in Jammu and Kashmir's Pahalgam, Russia has been aggressively making efforts aimed at promoting the Su-57E. In an interview with Sputnik, a Russian state-run news agency and radia broadcast service, a military observer from Moscow, Igor Korotchenko, said India should, without a second thought, go for acquiring the Su-57MKI that is especially designed for New Delhi and equipped with long-range missiles like the R-37M - keeping its requirements in mind. At the same time, a few Russian bloggers are trying to project Su-57 as superior to the Rafale. They are leaving no stone unturned to urge India to invest in it. New Delhi, however, has not so far respond to the suggestions, either unofficially or officially. It appears that the path for Su-57E's acquisition is not an easy one. It will be interesting to note that whether the fighter jet manages to find a place in the international defense market in the years to come.
