22/05/2026

FRIDAY | MAY 22, 2026

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Ű BY T.C. KHOR newsdesk@thesundaily.com

Nationwide blitz on unregistered F&B operators

GEORGE TOWN: The Customs Department has launched a nationwide sweep targeting unregistered food and beverage (F&B) operators to tighten service tax compliance and raise revenue collection. In a statement on Wednesday, the Customs Department said Operasi Pendaftaran F&B 2026 began simultaneously nationwide on May 11 and will run until July 10. Launched at the Seberang Jaya Customs Complex yesterday, the operation will track and locate companies and individuals providing F&B services that are subject to service tax under Group B of the First Schedule of the Service Tax Regulations 2018. Besides restaurants and cafes, the operation will also cover catering businesses, food service providers and companies awarded government tenders involving F&B services. The department said in a statement the operation will also help F&B operators better understand their obligations under the Service Tax Act 2018. As of May 2026, 11,604 entities in F&B were registered under the

o Two-month ops by Customs Dept aims to increase national revenue and boost awareness on SST obligations service tax system, representing 10.98% of the overall 105,681 entities registered under the Service Tax Act 2018. The department said it remained committed to strengthening tax compliance, increasing national revenue collection and supporting economic development under the

“As a result, untreated wastewater can overflow into drains, pollute water sources, emit foul odors and cause a nuisance to neighbours.” Meanwhile, for the commercial category, Ainal Yusman said only 22 premises or 1.8% of the 1,209 notices issued last year carried out the desludging process for their respective septic tanks. According to him, under Regulation 2(1) of the Water Services Industry (Desludging Services) (Amendment) Regulations 2023, septic tank desludging must be done once every two years for premises located within local authority areas and once every three years for premises outside local authority areas. He warned that septic tank owners who fail to maintain their sewerage system and do not appoint a licensee or permit holder to carry out desludging works can face action under Section 65(1)(c) of the Water Services Industry Act 2006 (Act 655). “Upon conviction, premise owners can be fined not exceeding RM50,000.” He added that a total of 20,063 individual septic tanks have been recorded in Perlis to date, while more than 1.38 million individual septic tanks were recorded across Peninsular Malaysia and Labuan as of last year. – Bernama for the Kuching-Sibu, Kuching-Miri and Kuching-Bintulu routes, which were allegedly linked to an agreement signed by the Federal Government in 2019. The Sarawak state government took over MASWings through AirBorneo, effective Jan 1. – Bernama time may still be required to pay SST retrospectively, even if the tax was never collected from customers, tax specialists say. Failure to register can also lead to fines of up to RM30,000, imprisonment of up to two years, or both upon conviction, according to SST-related guidance materials. The SST registration can be completed online through Customs’ MySST portal by submitting company information and taxable turnover details. Successful applicants will then receive an SST registration number and are required to begin charging service tax. More information can be found at the MySST portal at https://mysst.customs.gov.my and the Customs Department website at https://www.customs.gov.my.

revealed that 8,520 septic tank desludging notices were issued to domestic premise owners in Perlis throughout last year, yet public compliance remains critically low. SPAN operations division enforcement section director Ainal Yusman Mohamad Yusop said out of that total, only 302 domestic owners or approximately 3.5% carried out the septic tank emptying works. “Even though Indah Water Konsortium (IWK) has been actively running engagement programmes with residents, village chiefs, state executive councillors, elected representatives and NGOs, public awareness is still very low,” he said after leading a surprise enforcement operation (Ops Haruman) here on Wednesday. The three-day operation involved inspections of 205 premises around Kangar, consisting of 74 commercial premises and 131 domestic premises identified as having failed to carry out scheduled septic tank desludging. Ainal Yusman noted that there were even homeowners who admitted they had never once emptied their septic tanks since moving into their homes back in the 1980s. He explained that many people assume their sewerage system is fine as long as the toilet is not clogged, failing to realise that an subsequently provide air travellers in rural Sabah and Sarawak with more flight options,” the ministry said in a statement. The ministry is seeking to clarify issues raised at the Sarawak State Legislative Assembly regarding the absence of AirBorneo flight services collect service tax from customers and remit the tax to the government. For the F&B sector, service tax generally applies to restaurants, cafes, caterers and food service operators that exceed the threshold prescribed under SST regulations. The service tax rate for F&B services remains at 6%, although Putrajaya increased the rate for several other taxable service sectors from 6% to 8% in March 2024 to strengthen government revenue. The F&B industry has also undergone changes since SST was reintroduced, with the growth of food delivery platforms, cloud kitchens, digital payments and online food brands making it easier to track business activity electronically. Businesses that fail to register on

Madani economic framework, which emphasises balance between economic prosperity, public wellbeing and national sustainability. The Service Tax Act 2018 is part of the Sales and Service Tax (SST) system, which replaced the Goods and Services Tax (GST) in 2018 after the Pakatan Harapan government abolished GST following the 14th general election. Unlike GST, which was a broad based consumption tax imposed across multiple stages of the supply chain, SST applies only to selected goods and services specified under the law. Under the system, businesses providing taxable services above a prescribed annual threshold are required to register with Customs,

‘Compliance for septic tank desludging in Perlis low’ KANGAR: The National Water Services Commission (SPAN) unmaintained septic tank can lose its ability to treat wastewater.

Abang Johari said AirBorneo will improve accessibility for Sarawakians and create new avenues for trade, investment and tourism.

Sarawak to establish own space agency KUCHING: Sarawak is planning to establish its own space agency, said Sarawak Premier Tan Sri Abang Johari Abang Openg. Sarawak State Legislative Assembly here on Wednesday.

service rural routes within Sabah and Sarawak. He said in phase two, AirBorneo will expand into strategic domestic and regional commercial routes based on market demand and aircraft availability. “For the initial jet operations, AirBorneo plans to begin targeted routes from Kuching to Kuala Lumpur, Kota Kinabalu, Jakarta and Singapore by July. “It is our vision to connect Sarawak to major towns and cities of Borneo. Through direct air links, AirBorneo will improve accessibility for Sarawakians, investors and tourists, while creating new avenues for trade, investment and tourism,” he said. – Bernama “Therefore, flights on these routes should not receive subsidies as they involve two cities, similar to any inter city flight in Peninsular Malaysia. “The change in status of these routes to commercial routes will further encourage the participation of local airlines to operate and

Abang Johari said Sarawak is also targeting the launch of Sarawak’s first nanosatellite by 2030, through CubeSat-based technology, which involves the use of small satellites for real-time data and earth observation. “Sarawak will have the capability to develop its own satellite system to obtain earth imagery, geolocation data and strategic information for planning, environmental monitoring and resource management,” he said. Meanwhile, on AirBorneo, Abang Johari said the airline is being developed in phases, with phase one focusing on consolidating public service obligation operations to routes were intercity flights based on a RAS review by the Malaysian Aviation Commission in 2017, because the routes no longer fulfilled the definition of Public Service Obligations (PSO) as they were jointly operated by MASwings with AirAsia, Malaysia Airlines or both.

He said the agency will be the main coordinating entity with the role of planning, forging partnerships and developing local capabilities. “Apart from that, the Sarawak Aerospace Advisory Council has been established to provide strategic direction and comprehensive guidance in driving the establishment of Sarawak’s aerospace sector, in line with current global industry standards,” he said when winding up the debate on the Sarawak Premier’s Department on the motion of thanks to the Yang Dipertua Negeri at the

AirBorneo to operate intercity flights PUTRAJAYA: AirBorneo may submit applications to provide flight services for the Kuching-Sibu, Kuching-Miri and Kuching-Bintulu routes on a commercial basis as the routes are not categorised as Rural Air Services (RAS). The Transport Ministry said such