22/12/2025

BIZ & FINANCE MONDAY | DEC 22, 2025

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Malaysian Paper

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Maximise your reliefs, deductions by year’s end

Rising stock levels to pressure CPO futures KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivative are expected to trade with a bearish bias this week, weighed down by rising stock levels. Palm oil trader David Ng said weak demand from buyers is also likely to limit gains in the CPO market. “We expect prices to range between RM3,800 and RM4,050 per tonne (this week),” he told Bernama. Last week, on a Friday-to-Friday basis, the spot month December 2025 contract lost RM88 to RM3,892 per tonne, January 2026 dropped RM99 to RM3,904 per tonne, and February 2026 fell RM113 to RM3,905 per tonne. The March 2026 contract slid RM117 to RM3,911 per tonne, April 2026 lost RM119 to RM3,916 per tonne, and May 2026 gave up RM120 to RM3,914 per tonne. Weekly trading volume decreased to 408,456 lots from 436,257 lots last week, while open interest rose to 276,507 contracts from 263,277 contracts a week earlier. The physical CPO price for December South fell RM80 to RM3,950 a tonne. Meanwhile, the rubber market is expected to edge higher this week amid supply concerns stemming from persistent heavy rainfall in rubber producing districts in Thailand and Malaysia, said industry expert Denis Low. He said the incessant rainfall, coupled with weather alerts in Thailand and flood and landslide warnings in Malaysia, is likely to reduce rubber output and disrupt logistics. “In view of these conditions, rubber prices are expected to inch upwards, supported by stronger demand for both bulk and dry rubber,” he said. Fluctuations in exchange rates and crude oil prices are also contributing to market volatility, he added. Last week, on a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for SMR 20 fell by one sen to 723 sen per kg. – Bernama

T HE end of the tax year – Dec 31 2025 – is around the corner. You still have just nine days or so to ensure that you pay the correct amount of tax after taking into account all the reliefs, deduc tions and opportunities to arbi trage the tax between yourself and corporate vehicles in which you have interest. The 2025 tax return must be filed before May 15 2026, and all taxpayers must file using the MyTax portal. Reliefs and deductions The basic relief for an individual is RM9,000 and if you have chosen a joint assessment, you will be entitled to a further relief of RM4,000 if your spouse is not working. This amount increases by an addition of RM6,000 if your spouse has disability and if the person filing has disability, the relief is increased by an additional RM7,000. Child relief is RM 2,000 per child for children under 18, and those who are 18 and above who are in full-time education it is RM8,000. A disabled child in higher education will be eligible for relief of RM16,000. Relief is available for medical expenses incurred for serious illness for self, spouse and children up to RM10,000, support equipment for disabled individual, spouse, child and parents – RM6,000, breastfeeding equipment – RM1,000 available once every two years. KUALA LUMPUR: Malaysia’s exports rose 7% year-on-year (y-o-y) to RM135 billion in November 2025, underpinned by stronger external demand, according to the Department of Statistics Malaysia (DoSM). Imports increased 15.8% to RM128.9 billion during the month. DoSM said Malaysia’s November 2025 trade performance also improved, with total trade rising by 11.1% y-o-y to RM263.8 billion from RM237 billion. The trade surplus stood at RM6.1 billion, a 58.8% decline from RM14.8 billion in November 2024. It marked the 67th consecutive month of surplus since May 2020. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase in exports in November 2025 reflected a corresponding increase in re-exports and domestic exports. “Re-exports accounted for 22% of total exports and increased by 40.3% y-o-y to RM29.8 billion. Meanwhile, domestic exports, which contributed 78% (of total exports), saw a marginal growth of 0.3% to RM105.2 billion.” Compared with October 2025, imports recorded a marginal increase of 0.7%, from RM127.9 billion to RM128.9 billion, while exports, total trade and trade surplus were down by 9%, 4.5% and 70%, respectively. Mohd Uzir said the higher exports were mainly driven by an increase in goods to Taiwan (+RM3.2 billion), followed by China (+RM1.4 billion), Hong

facilities, etc.

Other reliefs include spouse and alimony relief – RM4,000, support for parents and grandparents – RM8,000 (this is for medical and care expenses), self education fees up to RM7,000 for higher education for approved courses, child care and kinder garten fees for children six years and below at registered centre – RM3,000, and contribution to national education saving scheme – RM8,000. Interest paid on the first home loan: RM7,000 for home costing less than RM500,000 and RM5,000 for home costing RM500,000-RM750,000 based on sale and purchase agreements executed between Jan 1 2025 and Dec 31 2027. Do not forget you can contribute to a private retirement scheme and deferred annuity of RM3,000. Also, you are entitled to contribute to the Employees Provident Fund up to RM4,000 and an additional contri bution of RM3,000 which can be made on a voluntary basis in the event you have not used the RM3,000 relief for life insurance. On top of these reliefs, taxpayers are entitled to education and medical insurance premium up to RM4,000. Other reliefs available to taxpayers are lifestyle relief of RM2,500 for the purchase of computers, laptops, tablets, smartphones, internet subscriptions, reading materials and skills enhancement courses. A further RM1,000 is available for the purchase of sport equipment or registration fees for sports competitions or entry fees for sport

Matters to be given a thought Review your tax positions if you are a shareholder of a private company. SMEs are taxed at 15% for the first RM150,000, 17% for the next RM450,000 and thereafter at 24%. In case your personal tax is above 24% after taking into account of all reliefs and deductions, you may wish to consider retaining income in the company and withdrawing the profits through dividends which would have been taxed at 24%. This is an opportunity for the higher bracket taxpayers to use this arbitrage. The effective saving for a taxpayer at 30% bracket would be 4%: the difference between the maximum personal tax rate of 30% and the corporate tax rate of 24% together with 2% dividend tax. In case you have not incurred the expenditure to enable you to maximise the reliefs and deductions you have another nine days to expedite the expenditure for deductions. In case you have any rental property, you could consider bringing forward the allowable expenditures such as repairs and maintenance before the year-end. If you wish to contribute to an approved charity, then accelerate such payment before the year’s end. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com).

Malaysia’s November exports rise 7% year-on-year to RM135 billion

Kong (+RM1.3 billion), the European Union (+RM1.2 billion), Mexico (+RM1 billion), Singapore (+RM736 million) and Vietnam (+RM715.7 million). “The increase was primarily driven by higher shipments of electrical and electronic (E&E) products, which grew by RM7.7 billion; optical and scientific equipment (+RM1.6 billion): metalliferous ores and metal scrap (+RM1.3 billion); palm oil-based manufactured products (+RM487.3 million); manufacture of metal (+RM393.1 million); and machinery, equipment and parts (+RM321.4 million),” he added. Meanwhile, Mohd Uzir said, the uplift in imports was mainly attributed to stronger inflows from China (+RM8.7 billion), followed by Costa Rica (+RM6.6 billion), South Korea (+RM3.4 billion), the United Arab Emirates (+RM1.3 billion), Taiwan (+RM1.3 billion), Oman (+RM1.2 billion) and the European Union (+RM826.6 million). “The import uptick was driven by heightened inflows of E&E products (+RM17.5 billion); machinery, equipment and parts (+RM1.3 billion); metalliferous ores and metal scrap (+RM942.4 million); others (+RM922.2 million); optical and scientific equipment (+RM414.2 million); and palm oil-based manufactured products (+RM406.5 million).” He added that Malaysia’s total trade from January to November 2025 amounted to RM2.8 trillion, a 5.8% growth y-o-y. – Bernama