Latest news with #SAMENTA
New Straits Times
10-06-2025
- Business
- New Straits Times
SAMENTA calls for higher SST threshold to shield SMEs
KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (SAMENTA) is calling on the government to urgently review the recently expanded Sales and Service Tax (SST) framework, warning that the current structure could significantly harm SME profitability and push up consumer prices. The association is proposing that the SST threshold be raised from RM500,000 to RM2 million in annual turnover, ensuring that only medium and larger enterprises fall within the tax scope. It is also advocating for a complete exemption for micro and small businesses, which form the backbone of Malaysia's entrepreneurial landscape. SAMENTA national president, Datuk William Ng, acknowledged the government's need to boost fiscal revenue but expressed concern over the timing and implementation of the expanded SST. SMEs are already grappling with high input costs, softening consumer demand, and declining external orders, Ng said. The situation is further complicated by the looming expiration of the United States' reciprocal tariff pause on July 8, which could erode Malaysia's export competitiveness and expose SMEs to retaliatory trade measures. Against this backdrop, the expansion of SST without sufficient exemptions or a higher threshold for SMEs risks compounding the cost burden on businesses that are least equipped to absorb it, Ng added. "This impact is not limited to raw material costs but extends to rent and business-to-business services that will now fall under the SST's expanded scope. These increases will almost certainly be passed on to consumers, further driving up the cost of living," he said in a statement. SAMENTA is also calling on the Royal Malaysian Customs Department (RMCD) to immediately issue sector-specific guidelines to help SMEs understand their obligations under the expanded SST. Many businesses, Ng said, lack the resources to engage tax consultants and are at risk of accidental non-compliance, even with the grace period in place until the end of 2025. He also urged RMCD to clarify SST application timing, especially regarding whether SST should be imposed based on the invoice date or payment collection date during the transition period. Many SMEs have already issued invoices prior to July 1, creating ambiguity around tax liability under the new regime. "SAMENTA supports the development of a fair, progressive, and transparent tax framework that broadens the base while protecting the country's entrepreneurial assets. However, this must be done in a calibrated manner, with genuine stakeholder consultation and alignment with current economic realities," said Ng. "While we were given a briefing on the expanded SST, we cannot consider it a consultation when it is presented as a 'fait accompli'." Ng said that in light of heightened global uncertainties and domestic economic fragility – factors that were not as pronounced when Budget 2025 was tabled – we believe that a higher exemption threshold for SMEs is economically prudent. Effective July 1, the revised SST framework will see a sales tax of 5 per cent or 10 per cent applied to selected non-essential goods, while the service tax of 6 per cent or 8 per cent will be extended to encompass a wider range of services. These include rental or leasing, construction, financial services, private healthcare, private education, and beauty services. The government expects the SST expansion to yield RM5 billion in additional revenue in the short term (equivalent to 0.24 per cent of GDP), with a long-term annual target of RM10 billion (0.48 per cent of GDP). The expanded scope is part of the government's broader initiative to strengthen the fiscal position by increasing and diversifying revenue sources. A portion of the additional revenue generated will be used to enhance public services and create greater fiscal flexibility. The revised framework also focuses on services typically consumed by higher-income individuals or non-residents, such as certain banking services, private healthcare for foreigners, and private education with annual fees above RM60,000. Given the targeted nature of the SST, which primarily affects non-essential goods and services consumed by higher-income groups, the impact on inflation is expected to be minimal.
Barnama
06-06-2025
- Business
- Barnama
LPG Permit Postponement: Proactive Measure Protecting Small Traders
GENERAL KUALA LUMPUR, June 6 (Bernama) -- The Small and Medium Enterprises Association Malaysia (SAMENTA) has described the government's decision to postpone the permit requirement for the use of subsidised liquefied petroleum gas (LPG) cylinders as a timely move to protect local traders. Its president, Datuk William Ng said although these are minor administrative changes, they have a huge impact on business continuity and the people's cost of living. "Without these measures, thousands of small traders, particularly in the micro and non-formal sectors, could be more adversely affected. We are thankful for the government's proactive approach, which has managed to avoid a crisis in microenterprise business at the national level. "More importantly, these decisions send a clear and positive message that the government recognises the Small and Medium Enterprises (SMEs) as the country's main economic pillar, as well as being responsive and prepared to improve its policies based on feedback from the grassroots,' he said in a statement today. Yesterday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said that micro and small-scale traders in the food and beverage sector may continue using subsidised liquefied petroleum gas (LPG) cylinders without a special permit until the amendments to the Control of Supplies Regulations (PPKB) 2021 are finalised in October. He also said that no legal action would be taken against this group of traders during the transition period. Commenting on the exemption from the e-invoice requirement and the extension of the e-invoice implementation invoice for SMEs, Ng said this would protect small traders, hawkers and family-owned businesses, which mostly do not have digital infrastructure, from the burden of compliance that could cause them to go out of business or operate informally. "We truly appreciate the government's firm decision to permanently exempt businesses which record annual revenues of below RM500,000 from the e-invoice obligation. "Similarly, the postponement of the implementation of e-invoices for businesses with revenues below RM5 million to Jan 1, 2026, provides much-needed space and time for SMEs to prepare, upskill and adapt. Such flexibility is crucial for the survival and growth of small businesses in an ever-changing economic landscape,' he said.
The Sun
06-06-2025
- Business
- The Sun
LPG Permit postponement: Proactive measure protecting small traders
KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (SAMENTA) has described the government's decision to postpone the permit requirement for the use of subsidised liquefied petroleum gas (LPG) cylinders as a timely move to protect local traders. Its president, Datuk William Ng said although these are minor administrative changes, they have a huge impact on business continuity and the people's cost of living. 'Without these measures, thousands of small traders, particularly in the micro and non-formal sectors, could be more adversely affected. We are thankful for the government's proactive approach, which has managed to avoid a crisis in microenterprise business at the national level. 'More importantly, these decisions send a clear and positive message that the government recognises the Small and Medium Enterprises (SMEs) as the country's main economic pillar, as well as being responsive and prepared to improve its policies based on feedback from the grassroots,' he said in a statement today. Yesterday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said that micro and small-scale traders in the food and beverage sector may continue using subsidised liquefied petroleum gas (LPG) cylinders without a special permit until the amendments to the Control of Supplies Regulations (PPKB) 2021 are finalised in October. He also said that no legal action would be taken against this group of traders during the transition period. Commenting on the exemption from the e-invoice requirement and the extension of the e-invoice implementation invoice for SMEs, Ng said this would protect small traders, hawkers and family-owned businesses, which mostly do not have digital infrastructure, from the burden of compliance that could cause them to go out of business or operate informally. 'We truly appreciate the government's firm decision to permanently exempt businesses which record annual revenues of below RM500,000 from the e-invoice obligation. 'Similarly, the postponement of the implementation of e-invoices for businesses with revenues below RM5 million to Jan 1, 2026, provides much-needed space and time for SMEs to prepare, upskill and adapt. Such flexibility is crucial for the survival and growth of small businesses in an ever-changing economic landscape,' he said. Yesterday, the Inland Revenue Board (IRB) said in a statement that taxpayers with revenues or annual sales of below RM500,000 are exempted from implementing the e-invoice system for the time being. It added that e-invoicing implementation will be postponed to Jan 1, 2026 for businesses with an annual revenue of between RM1 million and RM5 million, and to July 1, 2026 for businesses with an annual revenue of up to RM1 million. The IRB said that the decision was taken after the government took into consideration the taxpayers' commitment, in particular the micro, small and medium enterprises (MSMEs), which require sufficient time and preparation to comply with mandatory implementation.
The Sun
06-06-2025
- Business
- The Sun
LPG Permit delay helps protect small traders
KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (SAMENTA) has described the government's decision to postpone the permit requirement for the use of subsidised liquefied petroleum gas (LPG) cylinders as a timely move to protect local traders. Its president, Datuk William Ng said although these are minor administrative changes, they have a huge impact on business continuity and the people's cost of living. 'Without these measures, thousands of small traders, particularly in the micro and non-formal sectors, could be more adversely affected. We are thankful for the government's proactive approach, which has managed to avoid a crisis in microenterprise business at the national level. 'More importantly, these decisions send a clear and positive message that the government recognises the Small and Medium Enterprises (SMEs) as the country's main economic pillar, as well as being responsive and prepared to improve its policies based on feedback from the grassroots,' he said in a statement today. Yesterday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said that micro and small-scale traders in the food and beverage sector may continue using subsidised liquefied petroleum gas (LPG) cylinders without a special permit until the amendments to the Control of Supplies Regulations (PPKB) 2021 are finalised in October. He also said that no legal action would be taken against this group of traders during the transition period. Commenting on the exemption from the e-invoice requirement and the extension of the e-invoice implementation invoice for SMEs, Ng said this would protect small traders, hawkers and family-owned businesses, which mostly do not have digital infrastructure, from the burden of compliance that could cause them to go out of business or operate informally. 'We truly appreciate the government's firm decision to permanently exempt businesses which record annual revenues of below RM500,000 from the e-invoice obligation. 'Similarly, the postponement of the implementation of e-invoices for businesses with revenues below RM5 million to Jan 1, 2026, provides much-needed space and time for SMEs to prepare, upskill and adapt. Such flexibility is crucial for the survival and growth of small businesses in an ever-changing economic landscape,' he said. Yesterday, the Inland Revenue Board (IRB) said in a statement that taxpayers with revenues or annual sales of below RM500,000 are exempted from implementing the e-invoice system for the time being. It added that e-invoicing implementation will be postponed to Jan 1, 2026 for businesses with an annual revenue of between RM1 million and RM5 million, and to July 1, 2026 for businesses with an annual revenue of up to RM1 million. The IRB said that the decision was taken after the government took into consideration the taxpayers' commitment, in particular the micro, small and medium enterprises (MSMEs), which require sufficient time and preparation to comply with mandatory implementation.
BusinessToday
06-06-2025
- Business
- BusinessToday
Small Traders Relieved After Govt Postponed E-Invoice Implementation
Micro-enterprises in Malaysia will be permanently exempted from mandatory e-invoicing, while small and medium enterprises (SMEs) earning below RM5 million annually will have their e-invoicing deadline extended to Jan 1, 2026, in a move welcomed by the Small and Medium Enterprises Association of Malaysia (SAMENTA). The Government has also temporarily waived LPG permit requirements for small food and beverage traders, easing the regulatory load on street-level operators and hawkers. Datuk William Ng, National President of SAMENTA 'These exemptions are not only timely but also reflect an understanding of the real challenges faced by small businesses on the ground,' said Datuk William Ng, National President of SAMENTA. The e-invoicing exemption applies to businesses earning below RM500,000 a year, many of which operate without digital infrastructure. SAMENTA had earlier raised concerns that mandatory compliance could push small traders to shut down or turn to informal operations. The association also noted that the LPG permit waiver, although minor on paper, has 'significant implications for business continuity and the cost of living.' SAMENTA credited the Government's response with averting what could have escalated into a 'national micro-business crisis.' Related
