27/01/2026

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TUESDAY | JAN 27, 2026

Malaysia to sign 30-year rail leasing deal with China

Gobind: MyIKD being developed to strengthen digital inclusivity

plain language, free from the legal jargon that disadvantages SMEs who cannot afford tax agents or lawyers. The tribunal should judge cases based on commercial reality and accounting records, ensuring that a business owner can defend their case without needing a law degree.” Ng said taxation should be a contribution to nation-building, not a source of “administrative terror” and bullying. Samenta urged the government to establish the proposed tax tribunal and to include industry representatives to ensure it reflects on the-ground reality of doing business. “Our stand is that businesses must and should pay taxes, and there should be no room for tax evasion. On the flip side, SMEs must be given a fair opportunity to dispute findings that they believe are unjust,” Ng said. He added: “We are ready to work with the Finance Ministry to turn this proposal into a reality that protects our wealth creators, encourages entrepreneurship, and ensures Malaysia remain a destination of choice for businesses and investors.” KUALA LUMPUR: The Digital Ministry is developing the Malaysia Digital Inclusivity Index (MyIKD) as part of efforts to strengthen the planning and monitoring of digital inclusivity more comprehensively. Minister Gobind Singh Deo stated that MyIKD is a centralised database designed to measure the digital divide within Malaysian society. “Through MyIKD, the aspect of affordability among the public will be specifically measured, and the findings will be utilised in the future to help the government design more targeted interventions as well as to monitor the digital divide continuously,” he said. He said this in response to Datuk Wira Dr Ku Abdul Rahman Ku Ismail (PN-Kubang Pasu) regarding the metrics used by the Digital Ministry to measure the progress of Malaysia’s digital economy for the 2025-2030 period during yesterday’s Dewan Rakyat sitting. Ku Abdul Rahman also asked about the ministry’s efforts to ensure that digitalisation does not widen social inequality, particularly in terms of the affordability of access. Gobind said that based on developments in the digital economy sector, the ministry remains committed to ensuring that digitalisation efforts do not widen social inequality by making digital inclusivity a core principle of policy imple mentation. “This commitment is translated into various initiatives and programmes that are implemented inclusively and involve all segments of society, so that the benefits of digitalisation can be enjoyed equitably.” In response to a supplementary question from Syerleena Abdul Rashid (PH-Bukit Bendera), Gobind said, the MyIKD also serves as an important mechanism for measuring the effectiveness of digital technology imple mentation in the country. Syerleena had sought clarification on the purpose and benefits of implementing MyIKD for the nation’s socio economic development. Gobind said the MyIKD evaluates several key aspects, including access to technology, affordability of ownership, as well as the level of readiness and acceptance of society towards new technologies. – Bernama

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

o Govt-to-govt agreement, to be inked in next couple of months, will fast track fleet expansion, improve reliability and strengthen maintenance capabilities: Loke

KUALA LUMPUR: Malaysia is set to sign a 30 year government-to-government rail leasing agreement with China in the next couple of months, Transport Minister Anthony Loke Siew Fook said. He said the proposed government rail leasing programme aims to strengthen Malaysia’s passenger rail capacity by leveraging expertise from Chinese state owned and publicly listed rolling stock manufacturers (CRCC), while working closely with local partners. “We are looking forward to signing a 30 year lease agreement between Malaysia and China in the next couple of months. This is one industry where we look forward to long term, sustainable cooperation between Malaysia and China,” he said at the High-Level Strategic Malaysia-China Destiny-Sharing Community Building Forum yesterday. In the past, Loke said, rail fleet expansion in Malaysia has been constrained by budget limitations, as rolling stock procurement has traditionally depended on development expenditure allocations. “Because of these constraints, more than a year ago we began discussions with China under a government-to-government mecha nism to increase capacity more quickly, improve reliability and strengthen main tenance capabilities,” he disclosed. Discussions with China have resulted in an understanding to implement a government to-government leasing programme to accelerate fleet expansion. “We have set up a special purpose vehicle to work with CRRC to develop the leasing programme,” Loke said. It was previously reported that Malaysia is in talks with China to set up a SPV to lease passenger trains. The Malaysian entity is expected to hold a majority stake (51%) in the proposed SPV for local control and industry empowerment. Loke said Malaysia hopes that through this

Loke speaking at the High-Level Strategic Malaysia-China Destiny-Sharing Community Building Forum.

from one place to another. It is a strategic asset for the country and for the region. Along railway corridors, we want to develop more industrial areas, industrial parks and manufacturing activity so that rail becomes a catalyst for broader economic development.” Loke said Malaysia could also strengthen connectivity, expand rail-based trade and position itself within future Asia-Europe rail corridors by linking regional networks. He outlined a longer-term vision to integrate Malaysia into a continental rail network linking Southeast Asia to China and eventually Europe through Thailand and Laos. “From Padang Besar we are connected to Thailand, from Thailand to Laos, and from Laos to China. Once you reach Kunming, you can travel to any part of China and even onwards to Europe. Malaysia must think big and think long term,“”Loke concluded.

cooperation there will be further collaboration in rail development with China. “Not only will Malaysia procure or lease trains, but technology transfer from China to Malaysia will take place through localisation, with more components and supply chains sourced from local companies,” he said, adding that the leasing programme builds on Malaysia’s existing rail cooperation with China, including the East Coast Rail Link, which is nearing completion. “Construction of the East Coast Rail Link is almost complete, and we are looking forward to the first train running next January. Hari Raya next year passengers should be able to use the East Coast Rail Link to balik kampung,” he added. Loke said rail development must be viewed from a strategic perspective rather than solely as a passenger transport service. “Rail is not just about transporting people

Samenta voices support for call to set up tax tribunal

PETALING JAYA: The Small and Medium Enterprises Association of Malaysia (Samenta) has come out in support of the proposal by

“SMEs cannot afford years of ‘wars of attrition’ in the high courts. By making the tribunal’s decision binding for smaller sums, we provide SMEs with finality and prevent the government from using its vast resources to outspend SME owners in court.” Ng said Samenta also proposed an automatic “stay of collection” within 30 days as the current “Pay First, Dispute Later” policy (Section 103 of the Income Tax Act) is a relic that is killing businesses. “We propose that the collection of additional taxes and penalties be automatically suspended the moment a notice of appeal is filed with the tribunal, provided it is done within 30 days of the assessment. We must stop ‘tax-induced bankruptcies’ where SMEs are forced to close because their working capital are seized for assessments that are later proven incorrect.” Samenta also called for the removal of legal jargon as the tribunal must be a “forum of fact” not a “forum of technicalities”. “We propose that arguments be presented in

presumption of guilt has no place in a modern democracy,” he emphasised. To ensure the proposed tribunal truly serves

the 1.2 million MSMEs in Malaysia, he said, Samenta proposes for a unified income tax and customs tribunal as, currently, SMEs are forced to navigate two legal channels: the Special Com missioners of Income Tax and the Customs Appeal Tribunal. “We propose a single, unified body to handle both direct and indirect tax disputes. An SME should not have to fight two different government agencies using two different sets of lawyers for the same

Member of Parliament for Bagan and former finance minister Lim Guan Eng for the formation of a tax tribunal. Samenta national president Datuk William Ng ( pic ) said as Malaysia moves into the full implementation of e-invoicing and stricter compliance under the Madani Economy, their members are reporting a surge in aggressive tax audits. “This places undue pressure on SMEs who are already struggling with tight liquidity and rising operational costs amid the ‘compliance economy,” he said in a statement yesterday.

business period.” Samenta also proposed a mandatory binding arbitration for small claims as for disputes involving sums below RM100,000, the tribunal’s decision must be final and binding on both the taxpayer and the Inland Revenue Board (IRB) or the Customs.

The current dispute resolution mechanism is manifestly insufficient, costly and time consuming for all parties, said Ng. “It forces poorly equipped SMEs to defend themselves against powerful, well-resourced agencies. It is not a fair fight, and the