30/06/2025

BIZ & FINANCE MONDAY | JUNE 30, 2025

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Corporates – don’t overpay your taxes OVERPAYING your taxes will not earn any brownie points with the tax authorities. Paying extra taxes adds to the authorities’burden to monitor the overpayments held accountable for any errors, there is a tendency for them to be extra careful, which results in extra scrutiny somewhat similar to an audit. This is unwarranted as there is no connection between a tax refund and an audit. The grouse of corporates is that the tax refunds are unnecessarily being held back which could have been ploughed back into the business operations without them having to incur interest to finance their capital needs. The government wants to have a good relationship with taxpayers, and their desire is to increase the level of compliance by the taxpayers and enhance the sustainability of the tax collections for the nation. If this is the intention, holding back refunds for long periods will lead to a deterioration of the relationship with taxpayers. Why is there overpayment? Overpayment of taxes is a result of genuine willingness of the taxpayers to be on the right side of the law and to avoid penalties. The most common reason for overpayment is that corporate taxpayers cannot accurately forecast their future profits. Currently our income tax system requires taxpayers to forecast their taxes one year in advance to enable the authorities to collect the taxes in advance on an instalment basis. You are given an opportunity to revise your estimates on the sixth, ninth and eleventh month of the financial year. However, in the first six months, you are forced to accept an instalment plan that cannot be less than 85% of the previous year’s estimate. This causes major problems because within the first six months, under the existing rules, you cannot amend the estimates although your profits have significantly dived, or your business has ceased in the first six months. The profit fluctuation is very common in industries dealing with commodities where the prices fluctuate significantly, or in other industries where the demand for their product and services is affected by seasonal factors, competition, currency changes, technological changes, death of key personnel and other reasons, such as the revision of tax computations sub sequently due to incentives or changes to the tax positions which are approved subsequently. What is the current situation? The Inland Revenue Board (IRB) has made it clear that refunds will only be made over a four-year period unless the amounts are minimal. The general principle is to refund a maximum of 5% within the first year, 10% in the second and third year, and the balance of 65% in the fourth year. The current practice of the IRB is not to allow a setoff the overpayment against the advance taxes that are due currently. Under the law, the IRB will compensate you 2% interest which will run 90 days from the date the tax return is submitted. Taxpayers are more interested in obtaining the refunds than earning 2% from the IRB. What should taxpayers do? It is clear that taxpayers must not overpay their taxes, and it may be preferable if they underestimate their taxes despite the underestimation resulting in a penalty. The time incurred to obtain the refunds and the cost of money held back by the IRB is likely to exceed the penalty. You are allowed to underestimate your forecast profits up to 30% below your liability without incurring a 10% penalty which will be imposed if you exceeded this threshold. The holding back of refunds does not bode well for our tax system and dampens the relationship with taxpayers and foreign investors. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). as there have been cases where the refund mechanism was abused by taxpayers. Since the officials will be

IHW 2025 boost for M’sia as premier healthcare hub

market is projected to grow at a compound annual growth rate of 17.9%. IHW 2025 provides a global platform to accelerate digital adoption and innovation in this space. “HIMSS, one of our co-located events, highlights digital transformation, AI, cyber security and workforce efficiency. “There will be exclusive keynotes on cutting-edge health IT topics, interactive demonstrations, and a digital health tech nology exhibition, all designed to enhance knowledge and foster innovation in healthcare in Malaysia and the Apac region,” Rungphech said. She added that IHW 2025 is a catalyst for innovation where local companies and startups will benefit from exposure to global investors, access to business matchmaking platforms and opportunities to showcase solutions alongside international players. This is especially timely as Malaysia ramps up digital healthcare adoption, she said. Furthermore, Rungphech said, there will be more than 125 conference sessions, with over 15,000 products on display and an anticipated attendance of over 21,000. “We aim to create a lasting impact by advancing Malaysia’s healthcare capabilities, fostering resilient supply chains and enabling the region to meet future public health challenges through collaboration, education, and innovation. Essentially, this would mean more collaborations between industry players on the ground, easier access and likely partnerships,” Rungphech said. Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow, she said. “At IHW 2025, we provide marketplace participants around the globe with oppor tunities to engage, experience and do business through face-to-face exhibitions, targeted digital services and actionable data solutions. We encourage the opportunity to connect buyers and sellers across more than a dozen global verticals. “These conference sessions provide platforms for healthcare professionals, policymakers, researchers and industry leaders to share the latest research, clinical guidelines and successful strategies for NCD (non-communicable disease) prevention, early detection, management, and rehabi litation,” Rungphech said. IHW 2025 brings together health ministers, policymakers, public health experts, and industry stakeholders from across Asean and beyond, she said, adding that this facilitates crucial networking and partnership-building for cross-border collaboration on pandemic preparedness.

o Exposure at International Healthcare Week can lead to increased export opportunities, attract investment for local manufacturers, says Informa Markets regional portfolio director

Ű BY JOHN GILBERT sunbiz@thesundaily.com

to the table with tangible solutions. We are not just showcasing products – we’re helping shape systems,” Rungphech said. She added that IHW 2025 will integrate five major international trade exhibitions under one roof, covering the healthcare value chain, enhancing opportunities to learn, fostering meaningful collaboration and investment, and showcasing innovation across various healthcare sectors. Each exhibition is accompanied by dedicated conferences tailored to the specific needs and developments of their respective industries. Notable mentions include CPHI South East Asia, which encompasses the entire pharmaceutical production supply chain, and WHX Kuala Lumpur (formerly Asia Health), which focuses on medical devices, hospital services and healthcare systems. WHX Labs Kuala Lumpur (formerly Medlab Asia) will feature its premier medical laboratory event in the region, while Medtec Southeast Asia specialises in the design and manufacturing of medical devices and technologies. HIMSS (Healthcare Information and Management Systems Society) is a leading global conference that will explore key themes in digital health, including artificial intelligence, data innovation, workforce transformation, and equitable care delivery. “By hosting IHW 2025 in Malaysia, we are not only enhancing the country’s position as a key player in pharmaceuticals but also sup porting national objectives for drug security and export develop ment.

KUALA LUMPUR: Malaysia’s robust health care market growth, thriving medical tourism industry, strategic regional position, sup portive government policies and ongoing improvements in healthcare infrastructure make it an ideal location to host International Healthcare Week 2025 (IWH 2025), which will take place from July 16 to 18. Informa Markets’ regional portfolio director for Asean, Rungphech Chitanuwat ( pic ), said this event will solidify Malaysia’s status as a premier healthcare hub in Asean and serve as a gateway for global healthcare collaboration. “As Asean Chair in 2025, Malaysia plays a pivotal role in promoting regional healthcare cooperation, addressing critical challenges such as supply chain resilience, digital health adoption and sustainable health financing through platforms like the EU Asean Health Summit,” she told SunBiz . Rungphech said exposure at IHW 2025 can lead to increased export opportunities and attract investment for local manu facturers, allowing them to penetrate international markets more effectively. With medical tourism revenues expected to triple by 2032, IHW 2025 strengthens Malaysia’s global appeal by showcasing its affordability, service quality and innovation in treatment options. “The event reinforces Malaysia’s status as a trusted healthcare desti nation for international patients,” Rungphech said. She noted that the success of IHW 2025 relies on robust partnerships between

“We aim to create a lasting impact by advan cing Malaysia’s health care capabilities, fos tering resilient supply chains, and enabling the region to meet future public health challenges through collaboration, education and innovation,” Rungphech said. Touching on key trends in digital health, she noted that Malaysia’s healthcare IT

government bodies and private sector leaders to position Malaysia as a leading healthcare hub and gateway to the Asean market. “IHW 2025 con ference sessions lead con versations on new tech, policy innovation and public-private collaboration

Bursa expected to trade in cautious mode with upside bias KUALA LUMPUR: Bursa Malaysia is expected to trade in cautious mode this week, but with an upside bias amid a constructive backdrop, as investors shift their focus away from the Middle East risks, an analyst said. adding that market sentiment could also be supported by the possibility of a Federal Reserve rate cut at its July meeting. For this week, Thong believes that market attention will focus on several key macroeconomic releases, both locally and internationally.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng maintains a cautiously optimistic view on the FTSE Bursa Malaysia KLCI’s (FBM KLCI) near-term outlook, as the index shows signs of upward momentum. “We believe that a breakout above the 1,530 level, supported by strong trading volume and sustained price action, would be a constructive signal that the market is ready to stage the next leg of its rally,“ he said.

“In the near term, we anticipate the FBM KLCI to trade within a range of 1,510 to 1,540,“ he added. Last week, the market barometer advanced 25.42 points to 1,528.16 from 1,502.74 in the preceding week. Turnover for the shortened trading week narrowed to 11.68 billion units worth RM8.45 billion from 13.72 billion units worth RM10.84 billion in the preceding week.

SPI Asset Management managing partner Stephen Innes believed investors will concentrate on assessing upcoming macro economic data releases while awaiting the deadline for the United States’ reciprocal tariff pause. “That said, the chances of an extension to the deadline are increasing given recent geopolitical distractions,“ he told Bernama,