09/03/2026

BIZ & FINANCE MONDAY | MAR 9, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

14

CP204 beyond compliance – a strategic tax tool

Gamuda’s construction order book reaches record RM44b in Q2

T HERE is a fundamental misunderstanding on the part of taxpayers that the CP204 is a means to collect taxes in advance. The truth of the matter is the tax is being collected con currently as the year progresses and as profits arise. The mechanism works on the estimated profits during the year, and the final profit will be finalised immediately after the year ends and the balance of the tax will be paid when the tax return is filed. If there is a refund, the tax authorities have indicated that they will try to refund the money as soon as possible. CP204 requires businesses to estimate their corporate tax payable for the upcoming financial year one month before beginning of the new tax year and remit monthly instalments over the subsequent 11 PETALING JAYA: British American Tobacco (Malaysia) Bhd (BAT Malaysia) announced a leadership transition following managing director Nedal Salem’s successful 4½-year tenure. Nedal will end his tenure on Aug 1 after leading the group through significant regulatory, commercial, and operational milestones. He will be succeeded by Daniel Hsu, current general manager of the BAT Vietnam cluster. Prior to taking the helm at BAT Malaysia, Nedal built a career spanning more than two decades across nine markets on three continents in the BAT Group, where he held multiple senior roles across diverse functions. Nedal was instrumental in steering BAT Malaysia through a complex operating environment, which included Malaysia’s first excise duty increase in over a decade and the implementation of the Control of Smoking Products for Public Health Act 2024. Under his stewardship, the group strengthened its commercial resil ience and operational discipline and reinforced its combustible portfolio. BAT Malaysia closed its latest fiscal year with its strongest quarterly performance in seven years. Net profit for Q4 FY25 more than doubled to RM121.2 million, up from RM48.97 million a year earlier. Revenue rose 45.2% to RM947.98 million from RM653.03 million a year earlier, demonstrating the group’s sustained ability to create value for shareholders. Nedal strengthened the group’s

KUALA LUMPUR: Gamuda Bhd’s outstanding construction order book reached a record high of RM44 billion in the second quarter of the financial year ending Jan 31, 2026 (Q2 FY26), driven by its major expansion in Australia. The engineering, construction and property development company said its latest win, the A$2.7 billion (RM7.5 billion) Sydney Metro West – Stations Package West project, has helped the group secure a combined RM9.5 billion in new infrastructure and energy projects during the quarter. The group posted a 5% growth in its quarterly net profit to RM230 million, alongside a 9% rise in revenue to RM4.4 billion. “This performance was primarily driven by robust contributions from ongoing domestic construction projects and the successful execution of quick-turnaround projects (QTP) in Vietnam, exceeding sales targets,“ Gamuda said. For the first half of the year (H1 FY26), the group’s net profit rose5% to RM445 million, while revenue grew 1% to RM8.3 billion. On the property front, for H1 FY26, the group’s property sales decreased by 9% to RM1.6 billion. Celadon City in Vietnam was completed last year and has sold out available products much faster than anticipated due to demand exceeding expectations. The group has proactively activated its strategic landbank replacement plans to boost its QTP portfolio with four new acquisitions. “Property sales are expected to pick up strongly as new phases and developments are brought to market,“ it said. Looking ahead, Gamuda said its resilience is supported by its record breaking RM44 billion construction order book and an unbilled property sales of RM8 billion. – Bernama MR DIY proposes sukuk programmes with combined limit of RM5b KUALA LUMPUR: MR DIY Group (M) Bhd has proposed to establish two sukuk wakalah programmes with a combined aggregate limit of RM5 billion in nominal value. In a filing with Bursa Malaysia, the home improvement retailer said the programmes comprise an Islamic medium-term notes (Sukuk Wakalah IMTN) programme of up to RM5 billion and an Islamic commercial papers (Sukuk Wakalah-ICP) pro gramme with a sub-limit of RM1 billion, both based on the syariah principle of Wakalah Bi Al-Istithmar . “The IMTN programme allows for the issuance of the Sukuk Wakalah IMTN from time to time and the ICP programme allows for the issuance of the Sukuk Wakalah-ICP from time to time, provided that aggregate out standing nominal value of the Sukuk Wakalah-IMTN and the Sukuk Wakalah ICP shall not exceed RM5 billion at any point of time,” it said. – Bernama

When tax risks arise, proactive steps can be taken to mitigate them by reorganising transactions. There are often opportunities to turn risks into tax benefits. For example, if a transaction is likely to be disallowed for tax purposes, restruc turing it so that it becomes tax deductible would achieve both risk mitigation and effective tax planning. Conclusion Although CP204 is only one aspect of tax compliance, taxpayers should begin paying much greater attention to overall tax compliance. Rather than treating it as a routine “run-of-the-mill” process, giving proper attention to tax compliance can help reduce tax risks while also creating opportunities for effective tax planning. This article is contributed by Thannees Tax ConsultingServices Sdn Bhd managing director SM Thanneermalai (www.thannees.com). thened the group’s commercial resilience, reinforced our leadership in key segments and played an important role in advancing industry dialogue on the tobacco black market while building a strong and engaged organisation. We wish him every success in his future endeavours. “The board would also like to welcome Hsu to BAT Malaysia. With his extensive international ex perience and strong leadership track record, we are confident that he will build on the group’s strong foundations and continue streng thening the business in the years ahead,” Mohd Nizom said. Meanwhile, Hsu brings more than two decades of experience in general management, brand mar-keting, sales, mergers and acquisitions, and joint-venture leadership across multiple industries and markets. Prior to this appointment, he served as Vietnam cluster general manager at BAT Vietnam, a role he has held since 2021. He previously held leadership roles, including cluster general manager in Taiwan, Hong Kong and Macau, as well as general manager in Cambodia. During his tenure in the Vietnam cluster, Hsu played a pivotal role in driving growth across Vietnam and Cambodia despite a volatile macro economic environment. His key accomplishments include unlocking joint-venture production capacity through strategic portfolio develop ment and simplifying the operating model in Cambodia, successfully turning around profitability. Hsu holds a Master’s in Public Policy and Management from the University of Southern California.

related natural calamities could likewise overturn forecasts. The common industries that face problems include construction, property, commodities (such as palm oil, petroleum products, rubber) and hospitality. CP204 could mitigate risks and help tax planning The IRB is an important stakeholder in your business as it collects on average about 24% of your profits. The basic principle of taxation is that taxpayers must follow the written law and pay the correct amount of tax. Every taxpayer aims to comply with the requirements while paying only the minimum tax required. The CP204 requires taxpayers to review their tax position before the year begins and to continue reviewing it as the year progresses. In the process of reviewing profit forecasts, taxpayers, together with their tax advisers, should be able to identify potential tax risks as well as opportunities for tax planning.

months starting from the second month of the new year. The

basic rule is the CP 204 tax estimate for the year cannot be less than 85% of the final tax liability of the previous tax year. Taxpayers are allowed to revise their estimates in the sixth ninth and eleventh month of the tax year.

Practical problems Despite the flexibility to amend CP204 estimates provided by Malaysia’s Inland Revenue Board (IRB) in subsequent months, many industries’ profitability is affected by external factors beyond their control. Examples include un expected events such as the 1997 Asian financial crisis, the 2007 Lehman bank crisis, the Russia Ukraine war or the current Middle East crisis. Events arising from internal mismanagement or fraud may also occur. Climate change and

Nedal Salem to pass baton to Daniel Hsu in BAT Malaysia’s leadership transition

Beyond commercial performance, Nedal placed a strong emphasis on building a high-performance organi sation and nurturing a strong workplace culture. BAT Malaysia’s people-centric approach continues to be recognised through multiple awards and accol ades, while sustainability remains a guiding principle for the group. Nedal is also passionate about empowering communities in meaningful, practical ways, leading to the launch of Beyond Benih, the group’s main community invest ment initiative, which supports B40 communities through sustainable, community-led farm gardens. BAT Malaysia chairman Datuk Seri Dr Mohd Nizom Sairi thanked Nedal for his leadership and commitment. “During his tenure, he streng Hsu: Played a pivotal role in driving growth across Vietnam and Cambodia.

leadership across the premium and value-for-money combustible seg ments, which refer to high-quality and cost-effective tobacco products, in his time at BAT Malaysia. Dunhill celebrated its 60-year legacy while maintaining its position as Malaysia’s leading premium combustibles brand, while Rothmans bolstered competitiveness through enhanced value cues. Nedal emphasised the need for policymakers and enforcement agencies to address Malaysia’s long standing challenge of the tobacco black market. The latest Nielsen Illicit Cigarette Study indicates that national illicit cigarette incidence has eased to 54.4%, down from 57.3% in 2021, reflecting the need for coordinated enforcement and industry collaboration. Nedal: Passionate about empowering communities.