01/07/2025

BIZ & FINANCE TUESDAY | JULY 1, 2025

16

Taxing day for businesses

KWAP finalises 12 partners under Dana Pemacu KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has shortlisted 12 global general partners (GPs) with an allocation of RM6 billion across both conventional and Shariah-compliant funds under the Dana Pemacu initiative. The funds will be channelled into three key asset classes which are private equity, infrastructure, and real estate, targeting key economic sectors including food security, education, silver economy and healthcare, energy transition, digital economy, financial inclusion, and other critical priorities under the Madani economy framework. Launched in May 2024, Dana Pemacu by KWAP plays a pivotal role in advancing Malaysia’s economic transformation through the strategic deployment of diversified and commercially viable investments, to enhance the value and impact of GLIC investments. By prioritising efficiency in resource allocation, this initiative focuses on driving carefully tailored investments that align with national priorities into high-growth Malaysian companies and critical sectors, while supporting the Government’s reforms under the GEAR-uP initiative to “Raise the Ceiling”, as part of the broader Madani economy framework. By adopting a co-GP model, which pairs global investment managers with local talent, Dana Pemacu said in a statement yesterday that it strengthens Malaysia’s private market ecosystem, driving sustainable growth, enhances domestic capacity, and brings global expertise to the local market while fostering economic resilience across key sectors. For private equity, the selected GPs are Investcorp, Navis Capital Partners, Nexus Point, and The Vistria Group. For infrastructure, the mandate is allocated to Climate Fund Managers, DigitalBridge, I Squared Capital, and Seraya Partners. Under real estate mandate, the GPs are Castleforge Partners Limited, Lendlease Investment Management Pte Ltd, Savills Investment Management, and TrustCapital Advisors Investment Management Pte Ltd. As part of the Co-GP model under Dana Pemacu, all global GPs have also finalised the selection of local partners pursuant to their thorough assessment process and are currently undergoing the necessary regulatory approvals. KWAP CEO, Datuk Nik Amlizan Mohamed said, “We received positive interests from global GPs since the launch of Dana Pemacu with more than 40 submissions obtained for our consideration. Following rigorous evaluation and due diligence processes, we have shortlisted these 12 global GPs that would further contribute meaningfully to Malaysia’s private market ecosystem. KWAP recognises the strengths of the selected global GPs as they have proven track record and experience in managing investments and driving performance.” Aligned with KWAP’s objective to support the domestic economy, majority of KWAP’s total investment under Dana Pemacu will be deployed in Malaysia and in Shariah-compliant opportunities. As part of diversification strategy, the remainder will be invested across international markets to generate sustainable, long-term risk adjusted returns. “At KWAP, we are committed in our effort to be the catalyst for national economic growth by strategically aligning our investment objectives into initiatives such as Dana Pemacu. Our focus to enhance infrastructure development and create employment opportunities which will subsequently contribute to sustainable progress is a testament to our commitment. By fostering innovation, empowering local talent, and strengthening Malaysia’s private market ecosystem, Dana Pemacu resonates with the principles of Madani economy in building a resilient, inclusive, and prosperous economy for the future.”

o Some recent measures are highly technical in nature

Its CEO, Luong Andy, said the secondary listing is a strategic advancement of the company as Bursa Malaysia is the most strategic platform to broaden its investors base and provide flexibility to access different equity markets to raise funds in the future. “We believe our secondary listing on Bursa Malaysia will enhance our position as an integrated comprehensive service provider for global chip companies and support our long-term growth ambitions,” he told reporters. Andy said the secondary listing also aligns with the company’s key operational presence through its new manufacturing facility in Penang to support a new semiconductor client. The company now has over one million square feet of combined manufacturing spaces in Singapore and Malaysia to meet the from July 1, 2025 regardless of whether the Malaysian customer is a service tax registered person or not. Next ‘big date’ is Sept 1, 2025 0 For service providers who are presently not service tax registered but provide services which are newly gazetted as a taxable service, an application for service tax registration must be submitted in August 2025 if the value of taxable service exceeds the registration threshold. Consequentially, the service provider shall impose service tax at a rate of either 6% or 8% on the value of taxable services effective from Sept 1, 2025. 0 For manufacturers who are presently not sales tax registered but sell goods which are no longer listed in the Ministerial Order on goods exempted from sales tax, an application for sales tax registration must be submitted in August 2025 if the value of taxable goods exceeds the registration threshold of RM500,000. Consequentially, the manufacturer shall impose sales tax at a rate of either 5% or 10% on the value of taxable goods effective from 1st September 2025. To-do before the year end Here are opportunities to bridge compliance gaps without penalty before we wrap up this year: 1. Employment agreements entered into during calendar year 2025 are to be stamped by Dec 31, 2025 without any late stamping penalty. 2. A comprehensive compliance review on agreements or contracts (inclusive of risk assessment) in view of the implementation of self-assessment for Stamp Duty effective January 1, 2026. There may be merits to close any compliance gap or risk areas by Dec 31, 2025 before self-assessment provisions in the Stamp Act takes legal effect. 3. In relation to SST expansion, businesses are granted grace period up to Dec 31, 2025 to make good any compliance gap without penalty. The tax, however, must be paid and it would be a cost to the vendor if the same cannot be recovered from the customer. New year, new beginnings Here are key tax changes that effect from Jan 1, 2026: 1. Consolidated e-invoice is not permitted for any single transaction with a value exceeding RM10,000. This means, if an individual buys, say, a luxury watch costing more than RM10,000, he or she would be required to provide their NRIC number or TIN to the vendor as a mandatory to complete the transaction. 2. Businesses with annual turnover of more than RM5 million to RM25 million are required to be in full compliance with e-invoicing requirements (flexibility ends on Dec 31, 2025). 3. Businesses with annual turnover of RM1 million to RM5 million are required to implement e-invoice, but flexibilities are

TODAY is set to be a crucial date in the Malaysian tax scene. To facilitate compliance, here is a recap of the changes that take will take effect. 0 Businesses with annual turnover of RM25 million to RM100 million are required to be in full compliance with e-invoicing requirements. Until June 30, 2025, businesses of the said size were allowed flexibilities to issue consolidated e-invoice on sales transactions as well as consolidated self-billed e-invoice on importation of goods and services. These flexibilities would cease to exist for transactions from July 1, 2025 onwards. 0 Businesses with annual turnover of RM5 million to RM25 million are required to implement e-invoice, but flexibilities are available for the first 6 months, i.e. until Dec 31, 2025. 0 Statutory bodies, statutory authorities and local authorities are required to issue e invoice from July 1, 2025. Even after this date, there is an exception that expressly preclude requirement to issue e-Invoice in respect of collection of payment, fee, charge, statutory levy, summon, compound and penalty by the said bodies/authorities carrying out functions assigned to it under any written law. 0 Widening of scope of service tax to include education, higher education (for non-citizen), healthcare (for non-citizen), construction works, financial services, beauty & personal care services, as well as rental and leasing of movable and immovable properties. Service providers who are presently registered for service tax would charge 6% or 8% on these transactions from July 1, 2025 onwards. 0 Widening of scope of sales tax to include goods from over 3,000 HS Codes. This affects various products that belongs to HS Code chapters of plastics, rubber, wood, iron and steel, copper, nickel, aluminium, machinery, mechanical appliances etc., which were previously under the sales tax exemption order. Manufacturers who are presently sales tax registered are required to impose sales tax on these newly taxable goods starting from 1st July 2025. 0 Importation of various taxable goods are subject to sales tax from July 1, 2025. The newly taxable goods include the examples in the preceding point as well as fresh food items such fruits and seafoods. 0 Malaysian businesses that pay to foreign vendors in respect of the newly taxable services are required to self-account for a 6% or 8% service tax under the reverse charge mechanism. This requirements is independent of withholding tax requirements and applies

available for the first 6 months – i.e. until June 1, 2026. 4. The first phase of implementation of self assessment system for stamp duty, thus requiring businesses to independently evaluate the stamp duty payable on their agreements / instruments executed from this date onwards. Of course, the above is only based on changes legislation as of now. There could be more tax measures that take effect from 1st January 2026 as part of the 2026 Budget which is planned to be tabled in the parliament during the month October 2025. Concluding thoughts Gone the days businesses refer to a simple tax calendar each year filled with tax filing deadlines. The multiple tax measures rolled out recently to fine-tune the nation’s tax system means that businesses must be more diligent in managing the tax affairs and meeting the due dates. While ensuring compliance is important, businesses must also perform holistic tax impact assessment with an aspiration to maintain competitiveness by optimising exemptions and embracing technology. Businesses should recognise the highly technical nature of some of the recent tax measures and seek professional input from professionals who are duly licensed, qualified and experienced to avoid unintended non-compliance. This article is contributed by Vivekanandan Vasudevan ( pic ) corporate and international tax manager at TRATAX Sdn Bhd, consulting firm specialised in tax, transfer pricing and SST.

SGX-listed UMS Integration en route to secondary listing on Bursa KUALA LUMPUR: Singapore Exchange (SGX) listed company UMS Integration Ltd yesterday launched its prospectus en route to the company’s secondary listing on the Main Market of Bursa Malaysia on Aug 1, 2025 by way of introduction. increasing demand for semiconductor products. “Looking ahead, UMS will continue to expand our role across the semiconductor and aerospace value chains,” said Andy.

“Within the semiconductor space, we see exciting opportunities in manufacturing high precision components used in advanced packaging solutions, which play a vital role in enabling next-generation artificial intelligence and high-performance computing applications.” The secondary listing will be undertaken by way of introduction, comprising 10 million shares made available for trading on Bursa Malaysia’s Main Market and will not involve any issuance or offering of shares. UMS shares will be fully fungible, where shareholders will be able to transfer their shares between SGX and Bursa for trading.

UMS is an integrated high-precision engineering and manufacturing solutions provider, offering complex precision machining, sheet metal fabrication, surface treatment, as well as sub-module and full-module assembly services for semiconductor and aerospace industry. The company which is currently listed on the Mainboard of SGX with a market capitalisation of approximately S$970 million (RM3.2 billion), will be the first SGX-listed company to go for secondary listing on Bursa Malaysia, according to the company.