Latest news with #RON95
Free Malaysia Today
an hour ago
- Business
- Free Malaysia Today
Iran-Israel conflict won't make govt raise RON95 price, says Anwar
Prime Minister Anwar Ibrahim said the price of RON95 petrol would not be raised even if there was a sharp increase in global crude oil prices. PETALING JAYA : Prime Minister Anwar Ibrahim has given his assurance that the government will not raise the price of RON95 petrol even if there is a sharp increase in global crude oil prices due to the geopolitical tensions between Iran and Israel. He said although a price increase would benefit the national petroleum company, the government aimed to avoid burdening the people with higher fuel costs. Speaking after a meeting with the Johor PKR leadership in Iskandar Puteri today, the PKR president also said the expansion of the sales and service tax (SST) must be implemented carefully so as not to pressure the lower and middle income groups. 'Sometimes people get confused. For example, it was said that bananas are subject to SST. Actually, it's imported bananas. 'We will clarify the matter. The important thing is that we do not want to burden the lower-income groups,' Bernama quoted him as saying. Anwar also suggested that government departments and agencies serve local fruits during official functions to support domestic production. He said the government is open to reviewing the list of goods and services subject to tax if there is confusion or unfairness in its implementation. Commenting on the issue of SST on educational institutions, the prime minister explained the tax would only be imposed on international schools that charged fees above a certain threshold. 'Regular and private schools that charge RM10,000 or RM20,000 a year are not taxed. But if it's RM60,000 a year, then pay a little tax,' he said. Anwar emphasised that tax revenue would be used to fund public necessities, such as the construction of schools and the upgrading of public healthcare facilities. 'Wherever I go, hospitals are crowded. Many schools also need repairs. We need funds, and those come from taxes, but not from ordinary citizens. We will target the upper class and foreign sectors,' he said.
New Straits Times
an hour ago
- Business
- New Straits Times
Rakuten cuts FBM KLCI year-end target to 1,630 on weaker earnings outlook
KUALA LUMPUR: Rakuten Trade Sdn Bhd has cut its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) index to 1,630, down from its earlier forecast of 1,730, citing slower-than-expected corporate earnings growth. Research head Kenny Yee Shen Pin said the revised projection is based on a price-to-earnings ratio of 16 times, and reflects a more cautious outlook amid persistent operating cost pressures, weak global sentiment, and a lack of domestic catalysts. Although the current market valuation remains reasonable, Yee said it is not strong enough to attract investor interest amid prolonged uncertainty. "The revision was made based on the current assessment of the performance of listed companies, which are facing operating cost pressures, weak global market sentiment, and the absence of new domestic growth catalysts. "At present, the local market is in a sideways phase. There are no clear new catalysts. Investors also view our market as rather 'boring'," he said during Rakuten Trade's third-quarter market outlook media briefing today. Yee also noted that the FBM KLCI is back to the 1,005 level, which is widely regarded as a psychological support point. "If the index dips below that threshold of 1,480 or 1,470, I think that would be a screaming buy for the local market," he said, suggesting that any significant pullback could present strong buying opportunities for investors. Meanwhile, Rakuten Trade equity research vice president Thong Pak Leng highlighted the potential rationalisation of RON95 fuel subsidies as another headwind that could weigh on sentiment. "But judging from what's happening in the Middle East, the government might not proceed too aggressively. Perhaps we will see a partial rationalisation of RON95. It really depends on how high crude oil prices climb. "In the current state, there's no fresh catalyst pushing up the market. While valuations are reasonable, everything feels quite dull. That is why we are also seeing a lack of participation from retail investors," Thong said. On the ringgit, Yee said Rakuten Trade believes the local currency is currently undergoing some recalibration and is expected to trend between 4.10 and 4.20 against the US dollar by the end of the year. "I think maybe the ringgit will strengthen against the dollar as well. As you all know, the Dollar Index has already deteriorated by 10 per cent year-to-date against major currencies. "So moving forward, many expect the dollar index to continue to weaken further. Along the way, we may see the ringgit perform better against the dollar," he added.
Daily Express
5 hours ago
- Business
- Daily Express
More reasons to honour the 40pc tax right: Star
Published on: Friday, June 20, 2025 Published on: Fri, Jun 20, 2025 Text Size: Hiew said the people of Sabah have long endured the underdeveloped infrastructure, lack of educational resources, and insufficient healthcare facilities, a reality of imbalanced development. Kota Kinabalu: The expanded Sales and Services Tax (SST) set to be implemented in July, introduction of a targeted subsidy mechanism for RON95 petrol and the federal government's plan to implement a carbon tax by 2026, are reasons enough for the federal government to immediately implement Sabah's constitutional right to a 40pc net revenue return, without further excuses or delays. Star Tg Aru Division chief Hiew Choon Yu said according to the latest projection by the Inland Revenue Board (IRB), Sabah's tax revenue is expected to reach RM6.2 billion in 2025—a historic high that clearly demonstrates Sabah's major contribution to the national economy and tax system. Advertisement Hiew said the people of Sabah have long endured the underdeveloped infrastructure, lack of educational resources, and insufficient healthcare facilities, a reality of imbalanced development. 'Meanwhile, the taxes collected from Sabah by the federal government each year are grossly disproportionate to the allocations returned to the state. 'Under Articles 112C and 112D of the Federal Constitution, Sabah is entitled to 40pc of net federal revenue collected from the state. However, this constitutional guarantee has never been truly enforced since 1969,' he said. He added that since 1974, Sabah's 40pc net tax revenue return has never been comprehensively reviewed or reassessed. Despite repeated government promises to review it, there has been no concrete progress. Advertisement 'In 2022, the Ministry of Finance even admitted the matter required 'further study,' deeply disappointing the people,' he said in a statement. Hiew noted that since 2024, the government has expanded SST to cover services including logistics, delivery, entertainment, maintenance, and repair—proving that the federal government already possesses the resources and mechanisms to redesign and implement tax policies 'Sabah is not a marginal state begging for handouts—it is part of the Federation and should receive a fair share of fiscal distribution.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
5 hours ago
- Automotive
- New Straits Times
Tax expansion poses limited direct impact on auto sector
KUALA LUMPUR: The upcoming expansion of the service tax scope, effective next month, will have a limited direct impact on Malaysia's automotive sector, according to CIMB Securities Sdn Bhd. The firm said this is because vehicle sales are already subject to a 10 per cent sales tax, while maintenance and repair services incur an eight per cent service tax. "That said, there may be a slight increase in dealership and showroom rental costs due to the measure, although we believe the impact will be minimal. "Indirectly, however, weaker consumer sentiment could weigh on new vehicle sales in the second half of 2025 (2H25)," it added. CIMB Securities also highlighted that the Malaysian Automotive Association has forecast a 4.5 per cent year-on-year (YoY) decline in total industry volume (TIV) to 780,000 units in 2025. This is attributed to demand normalisation and a reduced industry order backlog. The firm said MAA also flagged global economic uncertainty, exacerbated by US-China trade tensions, as a risk to Malaysia's economic outlook. In addition, the government has postponed the implementation of the revised open market value (OMV) calculation from January 2025 to January 2026. CIMB Securities views this delay as a short-term positive for the sector, as the new OMV formula could raise the average selling price of locally assembled vehicles by 10–30 per cent, based on MAA estimates. The firm also expects a sharper seven per cent YoY decline in TIV to 760,000 units, mainly due to potential headwinds such as the planned removal of the RON95 petrol subsidy in 2H25. "Despite this, we expect demand in the sub-RM100,000 segment to remain resilient, supported by national brands and selected entry-level Japanese models. "The government's plan, outlined in Budget 2025, to retain subsidies for at least 85 per cent of RON95 users should help cushion the impact and support affordability in the mass-market segment. "Consequently, we project national brands to retain a dominant 64.5 per cent market share in 2025, with non-national marques accounting for the remaining 35.5 per cent," it said. Furthermore, CIMB Securities believes the removal of fuel subsidies could further accelerate battery electric vehicle adoption. The firm also expects a potential spike in electric vehicle (EV) demand in the fourth quarter of 2025 as buyers rush to benefit from tax savings. Full duty exemptions for imported EVs are set to expire by the end of 2025, and the government is unlikely to extend them beyond the December 31, 2025 deadline. "Within our coverage, Sime Darby Bhd is well-positioned to ride this wave, supported by its expanding EV line-up across brands like BMW, Mini, Porsche, BYD, and Volvo," it said. Overall, CIMB Securities has maintained a "Neutral" rating on the auto sector due to a subdued growth outlook amid intensifying market competition. It noted that Sime Darby remains its top sector pick, supported by earnings recovery in the Australian mining sector, a broad EV portfolio, its stake in Malaysia's auto market leader Perodua, and the potential monetisation of non-core and land bank assets. Moving forward, the firm said key catalysts for the sector include the strengthening of the ringgit against the US dollar and Japanese yen, a reduction in interest rates, and favourable government policies aimed at reviving domestic demand. Key downside risks to its call include depreciation of the ringgit, interest rate hikes, and weaker consumer sentiment stemming from the potential subsidy rationalisation programme and new taxes.
The Star
6 hours ago
- Business
- The Star
‘RON95 subsidy cut first'
KUALA LUMPUR: The government will prioritise the rationalisation of RON95 petrol subsidy this year before introducing a carbon tax in 2026, says Finance Minister II Datuk Seri Amir Hamzah Azizan. He said Malaysia must first address the issue of fuel subsidies, particularly those involving the energy sector, before implementing the carbon tax. The government had previously announced plans to roll out a carbon tax targeting the iron, steel and energy industries by 2026, as outlined in Budget 2025. 'As we embark on this transition, we must ensure that no unintended consequences are embedded within our system. 'For instance, Malaysia has yet to implement a carbon tax as part of its policy framework. While it is scheduled for rollout by 2026, there are important precursor steps we must take. 'One major issue is the existing distortions in the system, especially the subsidies provided to the energy sector. 'A key objective now is to begin scaling back these subsidies. It doesn't make sense to impose taxes on one side while simultaneously providing subsidies for petrol, diesel and other fuels.' ALSO READ: 'RON95 rationalisation to proceed' Amir Hamzah made these remarks during a session titled 'Delivering Malaysia's Energy Transition' where he was a panellist alongside Deputy Energy Transition and Water Transfor-mation Minister Akmal Nasrullah Mohd Nasir. The session was chaired by Tan Sri Abdul Wahid Omar, a senior independent and non-executive director of IOI Corporation Bhd, Bernama reported. He also emphasised that subsidy rationalisation is a critical step toward establishing a strong foundation for sustainable mechanisms and policy frameworks. 'As a result, we can expect the introduction of structured measures, including climate action frameworks, robust measurement tools and ultimately, the implementation of a carbon tax to support these initiatives. 'If we want this transition to be sustainable and impactful, the entire system must respond. It cannot be driven by isolated announcements or standalone policies. 'The challenge for the government is to tie everything together coherently and effectively,' Amir Hamzah added. On Monday, Prime Minister Datuk Seri Anwar Ibrahim said the adjustments involving the price of RON95 petrol would not affect 85% to 90% of the population. Anwar said the government's move towards subsidy rationalisation is a critical step to ensure national resources are channelled effectively to benefit the lower-income group.
