17/06/2025

BIZ & FINANCE TUESDAY | JUNE 17, 2025

FOLLOW

ON INSTAGRAM

14

Malaysian Paper

@thesundaily @t

MRA seeks SST waiver on commercial rentals

Govt urged to rethink tax on rubber glove raw materials

raised to RM2 million in annual sales to safeguard small and independent retail businesses; defer the SST on rentals until after Visit Malaysia Year 2026 to preserve industry stability and support tourism-linked growth and introduce the SST gradually, starting at 3% and increasing progressively to 8% over five years. MRA said that retail businesses play a vital role in domestic economic growth and employment and thus it is critical that policies impacting this sector are implemented with transparency, fairness and proper stakeholder engagement. MRA said it welcomes further discussion with MoF to find a balanced and sustainable approach that supports both businesses and consumers.

o Retailers group says sector already pressured by cost increases, exemption will protect businesses and consumers

PETALING JAYA: The Malaysia Retailers Association (MRA) has urged the Ministry of Finance (Mof) to waive the planned 8% Sales and Service Tax (SST) on commercial rental and leasing services, scheduled to take effect on July 1. Retail businesses across the country are already under immense pressure from a succession of cost increases, including but not limited to the minimum wage increase to RM1,700; electricity tariff hikes; stamp duty on employment contracts; fuel subsidy ration alisation; the SST rate hike from 6% to 8%; and the 10% sales tax on low-value imported goods, MRA said in a statement, adding that these are just a few examples of rising fixed operational costs. “The full scope of burdens faced by retail businesses is much broader, but even these alone are already impacting business sustainability and bottom lines,” it added. MRA said the additional 8% SST on commercial rentals – introduced without any consultation or engagement with the retail sector – adds further pressure. “Rental is among the largest fixed costs for many businesses and this tax will push operating expenses even higher. It is unrealistic to expect retail businesses to absorb the full impact and many may have no choice but to pass these costs on to consumers – contributing to inflation and intensifying the rakyat ’s cost-of living burden,” the association said. Compounding these challenges, it said, is the growing uncertainty in the global economy, especially in light of the recent escalation in geopolitical tensions between Iran and Israel. This conflict has already begun affecting regional confidence, global commodity prices, and trade flows – making it an especially inappropriate time to introduce new tax burdens. In light of these concerns, MRA strongly

urged that a complete waiver of SST on commercial rental and leasing services or at minimum, defer implementation sine die, until macroeconomic and geopolitical conditions stabilise. If implemented, the association urged that the SST should be shared fairly between landlords and tenants, rather than passed entirely to retail businesses. It also urged that service charges and shared area fees should be excluded from the SST scope; the SST exemption threshold should be

PETALING JAYA: The Malaysian Rubber Glove Manufacturers Association (Margma) is urging the government to defer and review the imposition of 5% Sales and Service Tax (SST) on natural rubber latex and nitrile butadiene rubber latex raw materials. In a statement yesterday, Margma said the rubber glove industry is Malaysia’s largest export contributor to total rubber product exports, generating RM15.41 billion in export revenue last year and supporting over 78,000 direct jobs. Margma said applying SST to essential raw materials will immediately raise production costs. For companies that have already secured forward sales, absorbing these sudden additional costs will prove unfeasible, the association added. Margma said that at a time when global glove prices remain highly competitive, the added cost cannot be passed on to overseas buyers; instead, it will erode already thin margins, reduce cash flow for reinvestment and further weaken Malaysia’s share in a market now dominated by lower-cost producers. Beyond direct cost escalation, it said, the expanded SST risks causing a cascading effect on the entire domestic rubber ecosystem. “Upstream latex processors and chemical suppliers will face higher operating expenses, while downstream medical-device and industrial glove manufacturers – many of them SMEs will feel the squeeze on working capital. This could slow job creation, deter future automation projects and jeopardise Malaysia’s strategic ambition to remain a global centre for high-value glove production,” said the association. Margma said it fully supports the govern ment’s broader revenue diversification agenda, but believes that taxation policy should not undermine a sector that has consistently delivered foreign exchange, high-quality employment and substantial upstream linkages. “We therefore echo similar appeals by other associations for a calibrated approach: postpone the implementation date, conduct a thorough cost-benefit study with industry participation and consider targeted exemptions or zero-rating for critical raw materials where export competi tiveness is at stake.”

The Malaysian Retailers Association proposes that SST, if imposed, should be shared fairly between landlords and tenants, rather than passed entirely to retail businesses. – BERNAMAPIC

Margma said it stands ready to collaborate with the Ministry of Finance, the Royal Malaysian Customs Department and all relevant agencies to craft a balanced solution that safeguards fiscal objectives while preserving Malaysia’s leadership in the global rubber glove value chain. Malakoff, New Energy Asia ink deal to deploy EV charging infra across Southeast Asia Menteri Besar Datuk Seri Amirudin Shari chaired the final preparatory meeting ahead of the event, which will also feature the exchange of a Letter of Intent between Menteri Besar Selangor Incorporated (MBI Selangor) and National Aerospace Industry Corporation. “A total of 11 Malaysian companies will be According to him, the 242.81-hectare development aligns with the government’s plan to enhance Kuala Lumpur International Airport’s position as a regional logistics and aerospace hub. Also present at the meeting were Malaysian ambassador to France Datuk Eldeen Husaini Mohd Hashim, Selangor Investment, Trade and Mobility Committee chairman Ng Sze Han and representatives from MBI Selangor and Invest Selangor. – Bernama Selangor Aero Park set for launch at Paris Air Show 2025 SHAH ALAM: Selangor is set to mark a major milestone in its aerospace industry with the launch of the Selangor Aero Park (SAP) at the 2025 International Paris Air Show, which began yesterday. participating in the International Paris Air Show as exhibitors, with five of them hailing from Selangor.” he said in a Facebook post. Amirudin added that he was briefed on the programme flow by the Malaysia External Trade Development Corporation (Matrade) and the Malaysian Investment Development Authority, before holding further discussions with Naico and Malaysia Airports Holdings Bhd. Previously, Transport Minister Anthony Loke was reported as saying that the development of SAP would strengthen Malaysia’s efforts to become a leading air cargo hub in Asean.

KUALA LUMPUR: Malakoff Corporation Bhd, through its commercial and industrial solar subsidiary, Malakoff Radiance Sdn Bhd (MRSB), has signed a memorandum of collaboration (MoC) with New Energy Asia Sdn Bhd to jointly deploy electric vehicle (EV) charging infra structure across Southeast Asia. New Energy Asia is a joint venture between Hicom Engineering and Hangzhou Flash Charge Technology Co Ltd. Malakoff said in a statement yesterday that this partnership aims to develop integrated

Sdn Bhd – building on the success of a 2.0 MWp installation at the same facility in Pekan, which has already reduced grid electricity usage by around 7GWh and avoided nearly 5,489 tonnes of carbon dioxide equivalent in emissions,” he said. “We see this collaboration with New Energy Asia as a natural extension of that momentum, enabling us to integrate clean mobility solutions alongside our solar infrastructure and deliver greater value across the clean energy ecosystem,” he added. – Bernama

across the country,” said the energy and environmental solution company. Malakoff’s managing director and group CEO Anwar Syahrin Abdul Ajib said this initiative reflects its ongoing efforts to strengthen its renewable energy portfolio through strategic partnerships that drive real world outcomes. “Recently, we secured our largest single-site deployment to date – a 4.22-megawatt-peak (MWp) solar power purchase agreement with Hicom Automotive Manufacturers (Malaysia)

solar and EV charging solutions to support carbon-free mobility, share technical expertise and resources for effective implementation and explore business opportunities across the Asean region. “This MoC formalises a collaboration focused on integrating advanced EV charging solutions with Malakoff’s solar infrastructure. “Through this collaboration, both parties aim to leverage their respective expertise to accelerate the development and deployment of sustainable, low-carbon energy solutions