11/08/2025

BIZ & FINANCE MONDAY | AUG 11, 2025

14

Panda Eco System to bring in Tianjin Master’s logistics,

MISI 5 Tour takes soon-to-be launched Proton e.MAS 5 across Malaysia PETALING JAYA: Proton New Energy Technology Sdn Bhd (Pro Net), a subsidiary of national car maker Proton, has launched the nationwide MISI 5 Tour featuring previews of the second car in the Proton e.MAS line-up. The Proton e.MAS 5 – Malaysia’s most anticipated entry-level electric vehicle (EV) – is set to traverse five major regions of Malaysia from August to October. “The Proton e.MAS 7 is already the best-selling EV in Malaysia to date, and we believe the best way to build trust and momentum with our soon-to-be launched Proton e.MAS 5 is through hands-on experience. With the MISI 5 Tour, Malaysians will get the chance to see the Proton e.MAS 5 up close, learn more about the car from product experts, as well as meet popular influencers,” said Pro-Net CEO Zhang Qiang. Spanning central, northern, southern and east coast Peninsular Malaysia, and Sabah and Sarawak, visitors can explore the Proton e.MAS 5 through guided walkarounds, static displays and interactive showcases, all designed to highlight its stylish design, expansive storage and advanced tech in real-life settings.

PETALING JAYA: TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Bhd (TM), has formalised a five-year strategic collaboration with Agrobank to accelerate the digital trans formation of Malaysia’s agriculture and agro-based MSME sectors. The partnership underscores a shared commitment to modernise the nation’s agro financial ecosystem through secure, resilient and forward looking digital infrastructure. Agrobank said that as a leading financial institution focused on rural and agro-based development, it plays a critical role in empowering farmers, cooperatives and MSMEs. The colla boration with TM One strengthens this mandate through the deployment of advanced connectivity, cloud, cyber security and managed ICT services across Agrobank’s nationwide network. TM One executive vice-president Shazurawati Abd Karim said, “This partnership represents a strategic, co creative alliance to digitally empower Malaysia’s agro community. It aligns with key national priorities such as the National Agrofood Policy and Shared Prosperity Vision 2030, advancing supply chain solutions PETALING JAYA: Panda Eco System Bhd, a home-grown provider of retail manage ment solutions, has entered into a memorandum of understanding (MoU) with Tianjin Master Logistics Equipment Co Ltd to bring the China-based company’s integrated logistics and supply chain solutions, including auto mated warehousing and intelligent logistics technologies, to Malaysia. Under the MoU, Panda Eco System will be appointed as Tianjin Master’s system implementer in Malaysia to deploy, imple ment and support the latter’s solutions and systems across the Malaysian mar ket. Tianjin Master specialises in the design and manufacturing of a range of automated logistics equipment, such as shuttles, stacker cranes and conveyor systems, and holds over 20 patents and software rights. It has a strong track record with nearly 100 automated warehouse systems implemented across China and other global markets. Panda Eco System executive director and CEO Loo Chee Wee commented: “We are thrilled to embark on this strategic collaboration to represent Tianjin Master’s solutions in Malaysia. Many businesses, including our existing clients, are increasingly seeking greater automation to stay competitive and drive efficiency. We see rising demand for automation in retail, warehousing and logistics, driven by the need for scalability, real-time tracking and streamlined operations within in creasingly complex supply chains.” He added that Tianjin Master’s solutions, which have been deployed across various industries, are designed to optimise warehouse operations, enhance inventory management and enable seamless integration within the broader supply chain ecosystem.

SST challenges faced by construction industry

FROM July 1, 2025, all construction services are subject to a 6% tax, except those provided solely for residential projects, which certainly increases the prices of commercial projects. In theory, the consumer ultimately bears the tax. In practice, this is not always possible, particularly for ongoing contracts where prices were agreed before the tax came into effect. In such cases, developers may have to absorb the cost and, depending on market conditions, con struction companies themselves may also shoulder part of the burden. Over time, however, these additional costs will end up with the end-consumer. Challenges faced by the Industry The biggest challenge is the service tax, meant to be confined to services, but the industry supplies its services inclusive of materials and will now consequently have to charge the 6% service tax on both materials and services since the two are bundled. Existing rules do not allow for the segregation between services

the customs authorities. Mixed contracts are another problematic area. Currently, if a project contains any commercial element, the entire contract becomes taxable, even if most of the work is residential. This all-or nothing approach creates inequity and uncertainty. The rules for apportionment should be made available within the legislation. There is also a supply chain tax cascade whereby there is a tax-on tax element because the services that are absorbed by the con struction companies would have already been subjected to service tax which would not have been eligible for any exemption. Conse quently, when the construction enterprise bundles that cost and passes it on to the consumer, there is an embedded element of tax-on tax.

fundamentals in tax law is certainty, not ambiguity. The definition covers a whole set of works which is lengthy and detailed in paragraphs (a) to (f). However, there will still be exceptions where activities do not fall within the words from the regulations but could be caught if the spirit of this definition could be applied. Where does it leave the business enterprises? To avoid future disputes with the authorities, it is safer for the business enterprises to make sure that wherever there is a doubt in the coverage it is best to engage with the customs authorities and get a confirmation. The other challenge the industry will have to face is the struggle in determining whether a contract is non-reviewable or not. From our past Goods and Services Tax experience, we anticipate that there will be disputes between the customs authorities and the tax payer. Generally, the customs authorities will lean towards ruling contracts to be reviewable. Again, the government should look into this and provide more clarity and guidance to prevent disputes with

and goods. This contradicts the spirit of the legislation and spirals the cost to the ultimate consumer. The government must address this anomaly and bring the application within the ambit of the spirit of this legislation of imposing the tax only on the services. Currently, another hurdle preventing the split is the anti-avoidance provisions within the Service Tax Act 2018 that prevents such splits as it wants to avoid any artificial segregation intentionally done to avoid service tax. The definition of the phrase “construction works” is very wide in the Service Tax Regu lations 2018. It includes cons truction, extension, installation, repair, renewal, removal, reno vation, alteration, dismantling, demolition of, or facility main tenance in the construction works period. There is even an overlap, for example, in the case of repair which is duplicated again in Group G of the regulations. A dilemma of this nature should be avoided by the authorities to provide industries with certainty when reading the law. One of the

There are many more issues facing the construction industry that need to be addressed by the government urgently. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). TM One, Agrobank collaborate on digital transformation of agri sector “These capabilities align well with our existing warehouse management system, allowing us to offer a robust and integrated solution that enhances operational efficiency and scalability,” Loo said.

goals around rural digital inclusion, food security, and sustainable agri cultural innovation.” She added that they are proud to work alongside Agrobank to unlock the long-term impact to this critical industry, leveraging digital solutions that enable financial inclusion, operational resi lience and sustainable growth. “This is a pivotal part of TM’s Digital Powerhouse 2030 commitment to pioneer digital growth through tech nology leadership, shaping future ready industries and creating inclusive digital progress for all Malaysians,” she said. According to Agrobank group president and CEO Datuk Tengku Ahmad Badli Shah Raja Hussin, “We are honoured to collaborate with TM One in driving the digital transformation of Malaysia’s agro and rural sectors. This strategic partnership reflects Agrobank’s unwavering commitment to embracing innovation and technology as key enablers in enhancing the efficiency, accessibility and inclusivity of our financial services. With TM One’s proven capabilities, we are confident that this collaboration will strengthen our service delivery and empower

The partnership underscores a shared commitment to modernise the nation’s agro financial ecosystem through secure, resilient and forward-looking digital infrastructure.

agropreneurs to thrive in a technology-driven economy. This partnership not only reaffirms our role as a development-focused institution but also reflects our readiness to support a future-proof agro eco system,” he said.

tions demonstrates that agro-based industries are no longer left behind. As a key financier for sectors contri buting to national food security, Agrobank is committed to em powering all key players in the industry including farmers and

agropreneurs nationwide through advanced digital infrastructure.” He added that the agriculture sector, once regarded as traditional, is now evolving rapidly in tandem with digital progress. “The integration of digital solu