07/05/2026

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THURSDAY | MAY 7, 2026

Samenta lauds relief but warns SST on rental, dividend tax could neutralise impact PETALING JAYA: The Small and Medium Enterprises Association (Samenta) yesterday said the prime minister’s decision to mandate rental reductions for premises managed by Majlis Amanah Rakyat (Mara) and Urban Development Authority (UDA Holdings Bhd), while urging local authorities to follow suit, is a clear demonstration the government is listening to the grouses of their SMEs. National president Datuk William Ng said this proactive measure is a timely lifeline for small business owners and petty traders who are currently grappling with the global supply chain and energy crisis. However, Samenta warned that the SST on commercial rentals and the dividend tax risk wiping out these gains. “We urgently call for a postponement of these taxes until 2027 to prevent a ‘give with one hand, take with the other’ scenario,” the association said. The severity of these pressures is underscored by a recent Samenta flash survey, which revealed a deepening crisis for their SMEs with 93% of respondents already feeling the impact of rising costs; 38% reporting that their costs have surged by more than 11%; 45% absorbing the increase by cutting their already thin margins, while 14% remain undecided on how to survive the escalating costs. Despite these spikes, the survey also revealed that only 17% have raised their prices to consumers. “While we appreciate the measures introduced to date, including additional funding support, higher guarantee threshold under SJPP ( Syarikat Jaminan Pembiayaan Perniagaan ) and today’s announcement on rental reduction, the two major and immediate cost impediment to our SMEs are the SST on rental and the 2% tax on dividend,” said Ng. Samenta outlined three critical reasons for a postponement to 2027 – postponing SST on rentals ensures the prime minister’s relief measures stay in the pockets of SMEs rather than being diverted back into tax coffers during a global energy crisis; SME owners often take minimal salaries to protect jobs, relying on dividends as their primary income. Taxing these dividends, effectively a double tax, drains the very capital needed for automation and digitalisation to survive this prolonged energy crisis and with global supply chains in flux, a moratorium on new taxes until 2027 provides the fiscal breathing room needed for SMEs to plan expansion and hiring with certainty. Samenta said it remains committed to working alongside the government to realise the goals of the Madani Economy. “We believe that by combining the current relief efforts with a postponement of the taxes on rental and dividend, we will help our SMEs better prepare for and fight the on-going crisis,” said Ng.

Asean must navigate geopolitical shifts as one Ahmad Fuzi (centre) with Asean Business Club president and CARI Asean Research and Advocacy chairman Tan Sri Dr Munir Majid (left) and KSI Strategic Institute for Asia Pacific president Tan Sri Michael Yeoh.

At the regional level, Asean needs to deepen economic integration, including energy resilience, strengthen intra-Asean trade and investment, and enhance con nectivity – physical, digital and financial. “And at the global level, we need to uphold and promote multilateralism and open trade, engage all major powers constructively, by maintaining strategic balance, maintain Asean centrality in regional architecture, and preserve openness, whilst managing risks,” Ahmad Fuzi said. In a world where global dynamics are increasingly shaped by strategic consi derations, Asean’s strength must lie in endurance, coherence and strategic clarity, he added. “If we remain united, pragmatic and forward-looking, I have no doubt that Asean will not merely be able to navigate this new geopolitical era, we will define it. And shape our own future. “Let us therefore move forward with confidence, discipline and consistency, acting with a sense of purpose. And let us build – together – a future that is more resilient, inclusive and truly Asean,” he said. This year’s ALPF underscored Asean’s commitment to strengthening regional cooperation amid an increasingly complex global landscape. The forum was attended by distinguished policymakers, business leaders, and thought leaders from across Southeast Asia. It drew close to 200 parti cipants, including a strong representation of business and government leaders, with notable participation from the Philippines, this year’s Asean chair, who joined the sessions virtually. The one-day forum was jointly organised by the KSI Strategic Institute for Asia Pacific in collaboration with key regional partners, including the Asean Economic Club, Asean Business Advisory Council and Asean Business Club, and supported by the World Digital Chamber.

sitivity around critical infrastructure and chokepoints, the rise in protectionism and the reconfiguration of global supply chains. “Tariffs, once an exception, have become an instrument of statecraft to be weaponised. “Technology is becoming geopolitical, becoming an arena of competition as much as cooperation, and global institutions are struggling to keep pace,” said Ahmad Fuzi, who was also the former secretary-general of the Ministry of Foreign Affairs. He said all these dynamics are not abstract but are reflected in freight costs for transporting goods, in petrol and energy prices, in countries’ currencies, and in food import bills and the daily realities of people. Major powers are not merely engaging Asean but are competing within Asean and these evolving global shifts are affecting Asean in complex ways, Ahmad Fuzi said. “Asean collectively faces growing frag mentation in global trade systems, mounting pressure to align with competing powers and continued disruptions to supply chains and investment flows. “Yet the impact is far from uniform. Export-dependent economies are exposed to tariff risks and demand shocks, emerging economies face heightened capital volatility, and smaller states remain especially vulnerable to external pressures. “If left unaddressed, these challenges risk fragmenting Asean itself, weakening its centrality in the regional architecture, slowing economic integration and constraining future growth. “Most critically, we risk losing Asean’s greatest strength – its unity in diversity,” Ahmad Fuzi said. To move forward, Ahmad Fuzi said, firm action is required at three levels. At the national level, Asean needs to strengthen economic resilience and diver sification, invest in digital transformation and green growth, and build human capital for future industries.

KUALA LUMPUR: Amid the ongoing global geopolitical tensions, the Asean region stands out not as a passive observer but as an active arena of opportunity and contestation. Former governor of Penang, Tun Ahmad Fuzi Abdul Razak, said Asean is in a unique position – strategically located, economically dynamic and politically significant. The region’s openness has been a defining strength, enabling growth, integration and rising prosperity across the region. “With a population of over 680 million people and a combined GDP exceeding US$4 trillion (RM15.8 trillion), Asean today is the fifth largest economy in the world. It has also proven remarkably resilient. Even as global foreign direct investment declined, Asean attracted over US$226 billion in FDI, reinforcing its role as a global growth engine. “Supply chain diversification has brought new investments into the region, particularly in electronics and manufacturing,” he said in a special address at the Asean Leadership and Partnership Forum 2026 (ALPF 2026) entitled “Navigating Asean in a New Geopolitical Era, Keeping Centrality: Securing Prosperity, Empowering Power” yesterday. Ahmad Fuzi said the global economic climate is seeing a greater use of export controls and industrial policy, increased emphasis on supply chain security, a shift towards regionalisation, heightened sen o Regional bloc must remain united, pragmatic and forward-looking to face challenges amid evolving global dynamics: Ahmad Fuzi Ű BY JOHN GILBERT sunbiz@thesundaily.com