04/08/2025

BIZ & FINANCE MONDAY | AUG 4, 2025

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BWYS proposes to dispose of Banting industrial

Timely for businesses to review stamp duty position

properties for RM67 million

PETALING JAYA U Mobile, Malaysia’s Next Gen 5G network provider, has launched three new U Biz Bundles designed to accelerate digital adoption and enhance cybersecurity for Malaysian micro, small and medium enterprises. The new U Biz Bundles are offered in support of the government’s Geran Digital Perusahaan Mikro, Kecil dan Sederhana Madani (GDPM) campaign. Under this initiative, eligible MSMEs can enjoy 50% (or up to PETALING JAYA: Sheet metal products manufacturer and scaffol dings supplier BWYS Group Bhd has entered into a sale and purchase agreement with Yusin Machinery (Malaysia) Sdn Bhd for the proposed disposal of industrial properties in Banting, Selangor, for a total cash consideration of RM67 million. The properties, located at Kawasan Perindustrian Olak Lempit, sit on developed industrial land spanning about 339,386 square feet and comprise three blocks of four-storey office buildings, three blocks of single storey detached factory buildings and an ancillary building. The proposed disposal is ex pected to result in a gain of about RM33.8 million to the group, which will be recognised in the next financial year ending Dec 31, 2026. BWYS managing director Kang Beng Hai said, “We acquired these properties in January 2019 for RM28 million. The current offer presents a timely opportunity to unlock meaningful value from our investment. The proceeds from will be applied towards supporting our ongoing operations and enhancing overall business efficiency. “This move allows us to reallo cate resources in a way that aligns with our broader business strategy, ensuring we remain well posi tioned to capture opportunities and sustain our growth momentum in the coming years.” Of the RM67 million in proceeds, RM37.9 million will be allocated towards the repayment of bank borrowings, which is expected to generate annual interest savings of about RM1.1 million for the group. RM24. million will be utilised for raw material purchases and opera tional expenses, while the re maining RM5.1 million has been earmarked for expenses related to the proposed disposal. The proposed disposal is expected to be completed in the first quarter of 2026, subject to approvals from shareholders at an extraordinary meeting and regu latory authorities.

ALTHOUGH stamp duty has been present since 1949, compliance has not been the top focus of taxpayers since the tax authorities have been relaxed over the years in enforcing the law. However, recently, there is clearly a noticeable focus by the Inland Revenue Board (IRB) on raising awareness of taxpayers through visits to taxpayers and carrying out audits. The focus of such visits seems to lean towards auditing the tax payers and collecting back taxes and penalties. The educational element is a little lacking. The IRB’s right to collect stamp duty based on the legislation cannot be denied. Historically, stamp duty was collected on a voluntary basis rather than through enforcement of tax laws. In the early days, you could stamp your documents at IRB offices, district offices or attest revenue stamps to documents and stamp impressed by means of a die. The passive approach adopted in the past is no longer the PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) trustee RHB Trustees Bhd has entered into a sale and purchase agreement with TS Worldwide Warehousing Sdn Bhd to acquire a warehouse facility in Telok Gong, Klang, for a cash consideration of RM80 million. The property comprises two warehouse blocks with annexed office buildings and ancillary structures, situated on 10.19 acres of leasehold industrial land, with a net lettable area of about 259,310 square feet. It is currently occupied by Tuck Sun Logistics Sdn Bhd and will be leased to the same tenant under a fixed lease term of six years comprising an initial term of three years and a

could be either RM10 or could fall under Item 22, which could either be 0.5% or 1% of the amount mentioned in the document. The latest problem taxpayers will be facing is the absence of human interaction when dealing with the Stamp Office. It has become mechanical because of the use of the STAMPS portal and the sudden appearance of large assessments will be a shock to taxpayers. The way forward Since stamp duty can trigger significant liabilities, it should not be relegated below the other taxes. It is also important that taxpayers should determine their stamp duty position at the time they are drawing up the documents. Taxpayers should do the proper stamp duty planning within the confines of the law. This article is contributed by Thannees Tax Consulting

used in the document. As opposed to income tax and other legislation, the issue of the actual conduct of the parties to the transaction versus the legal documentation is not present in the Stamp Act. The Stamp Act focuses primarily on the written documentation. A common example where there will be differences of opinion between the IRB and the taxpayer is whether the instrument should be classified as an agreement under Item 4 of the First Schedule (RM10) versus other categories in which the stamp duty rates can differ, such as Item 22 in the case of contracts for services (1% of the contract value), or Item 32 for agreements for conveyances or sales (1% to 4% of the either the selling price or the market value of the property, whichever is greater). Another example would be that sometimes there is difficulty in deciding instruments that merely record the intention of the parties with values mentioned in the document, versus the document being interpreted as a loan document. The stamp duty here

approach taken by the IRB. Now, the approach is being more proactive in ensuring the law is complied with and enforced. Taxpayers can no longer wait for the authorities to come. Since stamp duty is applicable on all written instruments covered

in the Stamp Act, it is timely for you to review the documents and if necessary have them stamped and pay the taxes together with the late payment penalties.

Where are the likely problems? You have got to first determine the documents that need to be stamped and the documents that do not need to be stamped. If a document needs to be stamped, then you must classify the instrument and determine what the quantum of the stamp duty is to be paid. This is where the problem starts. An example of an ambiguity is the difficulty in determining whether payment for a lease is rental or premium. This will be largely dependent on the wording second term of three years, with an initial monthly rental of RM425,764.40, subject to agreed step-up during the second term. The acquisition will be funded by existing bank facilities, and is expected to increase Axis-REIT’s financing ratio to 34.3% of audited total assets as at Dec 31, 2024. Axis REIT Managers Bhd CEO/executive director Leong Kit May said, “This acquisition is in line with our investment strategy to grow our portfolio with high quality, income-accretive assets. The property is located in an established industrial area and within proximity of two major ports namely, Northport and

Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). Axis-REIT to acquire warehouse facility in Klang for RM80 million

The property comprises two warehouse blocks with annexed office buildings and ancillary structures.

Westports. Upon completion of this acquisition by end 2026, we are confident that this asset will

strengthen our recurring income base and contribute positively to our earnings.”

U Mobile launches three U Biz Bundles with enhanced cybersecurity features for MSMEs

RM5,000) subsidy on the new U Biz Bundles for one year, enabling them the opportunity to digitise affordably

Gen 5G Network provider. Beyond offering quality high-speed 5G con nectivity, we have included cyber security protection in each of the bundles as we recognise that it is a key pillar for MSMEs to achieve resilience and competitiveness, as outlined in the Malaysia Digital Economy Blueprint. “We are confident that this

RM39/month. 0 U Biz Secure Bundle : Includes 5x U Biz 98 lines, 5x Mobile Device Security, 2x Free 5G phones at just RM150/month. 0 U Biz Secure+ Bundle : Includes 1x Business Broadband, 5x U Biz 98 lines, 6x Mobile Device Security, 2x Free 5G phones, 1x Wi-Fi 6 5G Router at just RM180/month. “U Mobile is delighted to offer three new U Biz Bundles in support of the government’s GDPM campaign as the initiative is fully in line with our commitment to drive enterprise digital adoption as Malaysia’s Next

through packages that combine high-speed 5G connectivity, cyber security protection with multilayered endpoint security, as well as free 5G devices and Wi-Fi routers. The U Biz Bundles are: 0 5G Office Secure

initiative brings us closer to realising the ambition of making Malaysia a high income digital nation,” said U Mobile chief business officer Neil Tomkinson ( pic ).

Bundle: Includes 1x Business Broadband, 1x Mobile Device Security, 1x Wi-Fi 6 5G Router at just