25/08/2025

BIZ & FINANCE MONDAY | AUG 25, 2025

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KUALA LUMPUR: Zoho Corporation views Malaysia as a key market in the Asia-Pacific region as the country has strong digital ambitions and a mature and promising startup ecosystem. Zoho vice-president and general manager for Asia-Pacific Gibu Mathew ( pic ) said the India-based company’s decision to invest wallet credits in Malaysian startups reflects its long term commitment to empowering local businesses with modern tools, without the burden of high upfront costs. “This initiative is part of our broader Apac growth strategy, where we prioritise localisation, ecosystem enablement and long-term value creation. “By helping startups build a strong digital foundation early on – whether it’s in CRM (customer relationship management), finance, collaboration or custom app development – we’re not just offering software; we’re helping shape resilient, self-reliant businesses that can scale sustainably. “We see this as a win-win: startups L&G starts FY26 with strong performance in Q1 PETALING JAYA: Property developer Land & General Bhd (L&G), reported a significantly improved performance for the first quarter ended June 30, 2025 (Q1’26), with a profit attributable to owners of the company (Patmi) surging 177.8% to RM11.4 million from RM4.1 million in the same quarter last year. The strong earnings were driven by higher revenue contributions from L&G’s core property and education segments, which lifted group revenue to RM98.5 million compared to RM37.2 million in Q1’25. The group’s strong performance was led by the property division, which contributed RM85.5 million in revenue and RM18.7 million in operating profit, against RM26.4 million and RM3 million respectively last year. The strong financial performance was mainly attributed to increased progress billings and new sales from current development projects of Damansara Livista, Residensi Kamelia and The Wyn Residences, all located in prime Klang Valley locations. The education division also posted steady growth, with revenue rising to RM11.5 million from RM9.3 million and operating profit improving to RM5.1 million from RM3.6 million. The increase was supported by higher school fees and stronger enrolment numbers, reinforcing the division’s role as a stable recurring income contributor to the group. L&G managing director Low Gay Teck said: “We are encouraged by the earnings momentum delivered in the first quarter. While our current property projects continued to shine, gaining traction with more new sales, our private and international schools saw increased enrolment at all levels.” The group’s unbilled sales, which stood at RM594 million as at June 30, are expected to support revenue growth over the next 24 months. L&G earlier proposed a final single-tier dividend of 0.8 sen per ordinary share, representing a payout of RM23.8 million in respect of financial year ended March 31, 2025, subject to shareholders’ approval at the company’s annual general meeting to be held on Sept 18. Ű BY JOHN GILBERT sunbiz@thesundaily.com

Insight into issues related to taxation of cash trusts Itmax secures RM14.4m contract from Railway Assets Corporation PETALING JAYA: Itmax System Bhd, an artificial intelligence-powered integrated digital infrastructure service provider, has secured a RM14.4 million contract from Railway Assets Corporation (RAC), a statutory body under the Ministry of Transport. Under the 68-month agreement commencing on Sept 1, Itmax will upgrade and maintain RAC’s closed circuit television systems across the railway network, integrating AI capabilities to enhance monitoring, security and operational efficiency. Itmax managing director/CEO William Tan Wei Lun said, “We are honoured to be entrusted by RAC in what marks our first venture into the railway infrastructure segment. This award reflects growing trust in our capabilities beyond smart cities. Leveraging our proven track record and in-house R&D, we will deploy advanced AI solutions to elevate the safety and resilience of Malaysia’s railway assets. “This contract aligns with our vision of expanding our AI-powered digital infrastructure offerings to other critical sectors and building safer, smarter, and more connected communities across the nation.”

DISCUSSION of cash trusts has been brought up by the media recently since the amount of money flowing into these trusts runs into billions of ringgit. The promoters of these trusts normally promise high returns, and one of the require

has to prepare a return called CP58 if the payment exceeds RM5,000 annually. The trust will also be caught within the e-invoicing regime where the trust is earning more than RM500,000 income. The funds entering the cash trust should be explainable without infringing the Anti-Money Laun dering Act. The source of the funds should be available if the autho rities require an explanation. All the parties involved in the arrangement must file a tax return within the stipulated time frame: individuals by April 30 or June 30 if you are in business; the trust, SPV and trustee – within seven months from the financial year end. If any of the parties involved here want to shelter the income on the basis the money received by them is capital in nature, please prepare the support and arguments to face a challenge from the IRB. This article is contributed by Thannees Tax Consulting businesses approach problem-solving and innovation. Instead of relying solely on external developers or lengthy procurement cycles, SMEs will be able to ‘build, deploy, and iterate their own solutions’ much faster, with minimal technical knowledge,“ he said. For Malaysian SMEs, Mathew noted that local startups can “digitise operations such as inventory tracking, HR onboarding, or customer support more efficiently”, while responding to market changes in real time – whether it’s adapting to compliance requirements or launch ing a new service. More importantly, AI creates space for non-technical team members – operations managers, finance leads, even customer service heads – to ‘actively contribute to the innovation process,‘ unlocking agility and resilience critical for growth in a fast moving digital economy. In short, “AI-assisted SaaS solutions such as Zoho are not just about building faster; they’re about enabling a mindset shift, where innovation becomes a daily habit, not a one-time project,” Mathew said.

will be deducti-ble to the trust level and will be taxable in the hands of the beneficiaries. The SPV will also be taxed in the normal tax rate of 24% on its profits. The trust will be taxed at the rate of 24% just like a company is, and the beneficiary will be taxed at the slab rate applicable to the individual. If the trust does not deduct the distribution to the shareholders and pays tax on the full amount, the benefi ciary can claim a proportion of the tax as a tax credit against the tax payable. In this arrangement, the agents selling the product will receive commissions. The trust is unlikely to be paying the agents the commission. It is likely that the commissions are paid by the SPV, or another entity involved in the promotion of this product. Whichever organisation that pays the agents must declare the payments must deduct a 2% withholding tax provided the agent is a Malay sian individual who has earned more than RM100,000 from the organisation in the previous year. The paying organisation “Drawing from our experience of supporting over 18,000 startups globally, including 9,000 in India through partnerships with more than 200 ecosystem organisations, we have fine-tuned our outreach, credit allo cation and mentorship models to align with the unique needs of each market,“ Mathew said. He said the MYStartup Single Window platform provides seamless access to RM44 million in wallet credits for up to 4,400 startups – each receiving one year of credits to explore tools such as Zoho CRM, Books, Creator, Desk, Workplace and Zoho One – while promoting the pro gramme through local touchpoints including WhatsApp, events, emails and social media to match user behaviour and maximise engage ment within the startup ecosystem. Mathew said all Zoho users will now have access to artificial intelligence (AI) tools integrated across the company’s solutions, which he believes will be a game-changer for SMEs not just in Malaysia but across emerging markets. “Over the next two to three years, we expect a significant shift in how

or Bank Negara Malaysia. The trust products that are being sold are registered with the Companies Commission of Malaysia. What are the taxation issues? All the parties involved in the transaction are

ments is that the man agement of the fund is entirely left to the promoters who will be the trustees of such trusts. Although the

subjected to taxation in Malaysia: the trust body, trustee, benefi ciaries, agents selling the products. In simple terms, the cash comes into the trust and it is thereafter invested through a SPV

operating model can change from one cash trust to another, generally it involves the investor leaving a sum of money in a trust created by the individual and managed by an external trustee who in most cases will be related to the promoter. The trust then invests in a special purpose vehicle (SPV) which then can either directly invest or loan the monies to other vehicles such as moneylending companies or in other vehicles such as pre-initial public offering companies, etc. These arrangements are not monitored or governed by the Securities Commission Malaysia

and the income generated in the process should be reported to the Inland Revenue Board (IRB) and brought to tax. The funds transferred by the investor or settlor into the trust will not be taxable at that point. The income earned by the trust (dividends, interest, or rental) will be taxable with the exception of single-tier divi dends. Foreign dividends will be subject to tax on remittance into Malaysia. The trustee fees will not be tax deductible, and any distributions to beneficiaries

Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). Zoho views Malaysia as key pillar as firm pursues growth in Asia-Pacific

gross domestic product (GDP), accounting for 48% of total employ ment, and forming 97% of all registered businesses. The partnership aligns with the national digital economy ambitions, which aim to grow the digital

get access to the tools they need to grow, and we build meaningful, lasting relationships in a region that’s full of promise,“ Mathew told SunBiz . To recap, in April this year, Zoho signed a memorandum of under standing with Cradle Fund Sdn Bhd. Under the strategic

economy’s contribution to 25.5% of GDP by 2025. “With 4,400 startups expected to benefit from MYStartup, the platform plays a central role in ensuring a structured application and selection process across industries and stages, which is why Zoho for Startups has partnered with Cradle’s MYStartup to identify and

partnership, Zoho pled ged to channel RM44 million worth of Zoho Wallet Credits through the Zoho for Startups pro gramme, providing 4,400 plus Malaysian startups with access to essential digital tools and resources to support their growth. The collaboration, driven through Cradle’s MYStartup platform,

evaluate participants, granting all ecosystem startups access to the Zoho for Startups programme as part of its global strategy,“ Mathew said. As the second Asean country to adopt Zoho for Startups, Malaysia is a key part of the company’s strategic roadmap, where it adapts proven approaches and collaborates with local partners to ensure maximum relevance and impact.

marks a significant milestone for Malaysia’s digital economy and positions Zoho for Startups as a key enabler in nurturing the next generation of founders at various stages of their journey. According to Zoho, startups and SMEs are increasingly recognised as vital drivers of national growth – contributing over 37% to Malaysia’s