29/09/2025

BIZ & FINANCE MONDAY | SEPT 29, 2025

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Tax relief, higher stamp duty exemption on

BUDGET 2026 WISH LIST

Roll out more incentives on affordable housing, please

Support for consumer sector likely, says RHB Investment Bank KUALA LUMPUR: Budget 2026 is expected to be supportive of the consumer sector, with savings from fiscal reform measures such as the Sales and Services Tax expansion and RON95 petrol subsidy rationalisation likely to be rechannelled into additional fiscal support, RHB Investment Bank Bhd (RHB IB) said. In a recent note, the bank said allocations for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah could be raised, giving more assistance to lower-income groups struggling with the high cost of living. “The higher consumer disposable income should benefit consumer staples-related companies,” it said. RHB IB also expects civil servants to receive the second phase of salary adjustments of 3% to 7% from January 2026, after the first round of increments of 4% to 8% took effect in December 2024. “We expect bonuses for civil servants and income tax relief measures to be proposed – effective tools to lift disposable income and bolster consumption. Additionally, excise duties on sugar-sweetened drinks, tobacco and alcohol may rise after Prime Minister Datuk Seri Anwar Ibrahim signalled the government’s intention to curb Malaysia’s growing burden of non-communicable diseases,” it said. RHB IB said it is also looking for clarity on subsequent phases of RON95 subsidy retargeting – specifically whether and how subsidies will be withdrawn from high-income earners – to assess the potential inflationary impact. On the sector outlook, it said consumer sentiment could bottom out with greater clarity on US tariff policies, the Overnight Policy Rate cut and the strengthening of the ringgit. – Bernama “These measures are not just for the wealthy. They will help ordinary families protect their homes, keep SMEs alive, and make Malaysia a stronger financial hub,“ MIEP president See Kok Loong said in a statement. estate planners’ radar PETALING JAYA: The Malaysian Institute of Estate Planners (MIEP) is calling on the government to implement practical measures in Budget 2026 to simplify estate planning, reduce unclaimed funds, safeguard family businesses and enhance Malaysia’s position as a regional wealth hub. In submitting its Budget 2026 wish list to the Ministry of Finance, MIEP said the key highlights include a proposed RM1,000 tax relief for wills, trusts and estate planning services, alongside an increase in the stamp duty exemption for family property transfers from RM1 million to RM1.5 million, and up to RM2 million in Sabah and Sarawak. To address common challenges, a centralised will and trust registry is suggested to minimise missing documents and delays. At the same time, a digital probate system is expected to expedite straightforward cases within 30 to 60 days. For family businesses, MIEP proposes exemptions from capital gains tax on succession to ensure continuity, while a one time RM300 rebate for insurance trusts is proposed to encourage greater adoption. In addition, enhancements to the Forest City Hub should be considered, including lower entry thresholds, a broader investment scope, and 10 years of tax certainty to attract family offices and wealth management activities.

o SunBiz looks at some proposals, recommendations and forecasts from various industries and analysts ahead of the tabling of Budget 2026 in Parliament on Oct 10

PETALING JAYA: The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) is urging the government to continue rolling out stimulus packages that target affordable housing in Budget 2026. The association said these packages should offer tax incentives to developers championing affordable projects and empower low-income homebuyers through subsidies. This action eases the affordability crisis while revitalising the real estate sector, it added. “Emphasising the pivotal role of infra structure, we call for continued investments,” PEPS said. Citing an example, it said the buzz surrounding the Kuala Lumpur-Singapore High Speed Rail project exemplifies how transit-oriented developments can invigorate Malaysia’s economy in the short term. PEPS said the short-term infusion of investment in infrastructure promises not only economic stimulation but also the creation of vibrant, liveable communities that cater to a diverse range of citizens. It said prioritising connectivity and accessibility enhancements in key property zones, such as expanding public transportation networks and upgrading road infrastructure, will not only attract investors but also fuel

economic growth. “For the long haul, we champion un wavering commitment to sustainable urban planning. This entails enforcing robust environmental regulations and offering enticing incentives for developers embracing green building practices,” the association said. This enduring strategy promises lasting rewards, including a reduced environmental footprint and increased appeal to eco conscious buyers, it added. “By embracing sustainability as a cornerstone, Malaysia’s property sector can chart a prosperous and environmentally responsible future. “As eco-consciousness continues to rise among citizens, these developments become more than just a choice; they become a symbol of progress and responsible stewardship,” PEPS noted. In terms of government policies and housing, PEPS said there is a call for investor friendly regulations and streamlined govern ment procedures to attract investment, along with a revival of the Home Ownership Campaign (HOC), which has proven effective in encouraging homeownership, increasing property sales, and addressing the issue of property overhang. Affordable housing for locals is also emphasised, with suggestions to reduce

lightweight materials, and green mobility solutions.” See said policy reforms should also encourage greater collaboration between local suppliers and multinational Tier-1 manu facturers, ensuring Malaysian SMEs can integrate into global value chains. “Just as importantly, local businesses will need support to meet international standards for quality, safety, and ESG compliance so that they can compete effectively with peers in Thailand, Vietnam, and Indonesia. “By strengthening the overall competi tiveness of the sector, Malaysia can position itself as a serious regional player in the age of electrification and digital mobility.” Furthermore, See noted that support for digitalisation and automation is no longer optional but a necessity, as many Malaysian SMEs still struggle with the high upfront costs. She stressed that Budget 2026 could be “transformative” if it provides targeted grants, financing schemes, or shared-facility pro grammes to help firms automate production, adopt digital monitoring, and upskill workers. “Such measures would lift productivity, reduce reliance on manual labour and open access to higher-precision EV supply chains, ultimately moving Malaysia up the value chain in line with Industry4WRD and MyDigital,“ See said. The outcome is a future-ready industry that strengthens Malaysia’s EV ambitions, boosts exports, creates high-value jobs, and positions the nation as a serious regional hub for advanced automotive and EV manufacturing, she added. compliance costs to improve project feasibility and manage house prices more effectively. “Additionally, public-private partnerships are seen as a viable solution to revive abandoned projects.The government should also consider revisiting the RPGT (real property gains tax) base year adjustment for tax purposes, and stamp duty waivers are proposed for overhang units to further alleviate the issue of unsold properties,” the association said. On the sustainability and environmental, social and governance (ESG) front, PEPS recommends tax incentives for building owners to implement energy-saving measures and ESG initiatives. It said there is strong support for government efforts to promote sustainable energy use, mitigate climate change, and drive the country’s transition to a low-carbon economy through the adoption of energy-efficient technologies and renewable energy. “Property developers incorporating ESG elements into their projects should be incentivised, further aligning the real estate sector with global sustainability goals. Tax incentives should be extended not only to building owners, but also to SMEs that have embarked on the ESG journey, encouraging broader adoption of sustainable practices across different business sizes,” PEPS said.

KHPT Holdings suggests three key measures to rev up automotive parts industry

PETALING JAYA: KHPT Holdings Bhd has proposed three measures to the government for Budget 2026 aimed at strengthening local automotive parts producers and establishing a more integrated growth pathway for Malaysia’s automotive industry. The company, which is principally involved in manu facturing and sale of automotive parts and components, put forward three proposals – one, tax

often present a significant barrier, especially in an environment of rising raw material prices and currency pressures. “Targeted tax incentives would provide much-needed relief, making it easier for companies to reinvest in equipment, processes, and training without compromising cash flow. With such incentives, Malaysian suppliers can upgrade to advanced production systems, improve efficiency, and adopt new

technologies like EV component manufacturing. “These measures would not only reduce the risk of local players being outcompeted by imports but also attract private-sector reinvestment into Malaysia’s automotive ecosystem. In turn, the multiplier effects, from job creation to stronger supply chains, will be felt across the broader economy,“ See said. Secondly, on policy reforms to strengthen industry competitiveness, See said Malaysia’s automotive players need a stable and predictable policy environment to plan long term investments. “A clearly defined roadmap for EVs is critical to give global OEMs, local suppliers, and investors the confidence to commit to Malaysia as a regional hub. At the same time, the government can help by streamlining business approvals and permits, which often add unnecessary delays and costs for SMEs. “Simplified processes would allow companies to move faster in adapting to new demands, especially in areas like EV battery systems,

incentives to reduce the cost of investment; two, policy reforms to provide stability and confidence for long-term planning; and three, digitalisation to ensure that SMEs and mid-tier firms can become globally competitive suppliers. KHPT Holdings group managing director Datin Eloise See ( pic ) said the outcome is a future-ready industry that strengthens Malaysia’s electric vehicle (EV) ambitions, boosts exports, creates high-value jobs, and positions the nation as a serious regional hub for advanced automotive and EV manufacturing. Elobarting on the proposed tax incentives to support growth and investment, See said automotive manufacturing has always been capital-intensive. She said from tooling and stamping equipment to welding robotics, testing machines and quality control systems, constant reinvestment is necessary to keep production lines efficient and internationally competitive. For SMEs and mid-tier suppliers, these costs