29/10/2025

BIZ & FINANCE WEDNESDAY | OCT 29, 2025

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MBAM welcomes govt’s move to ease SST rules for construction sector PETALING JAYA: The Master Builders Association Malaysia (MBAM), one-year exemption on

Key ASIC wins repeat RM2m AI chip order KUALA LUMPUR: Key ASIC Bhd has secured a repeat order for its proprietary artificial intelligence (AI) chips valued at RM2.1 million. The first batch has been shipped, and the remaining units are currently in the process of being delivered to the customer. In a statement yesterday, Key ASIC said this repeat order reflects the customer’s continued trust in Key ASIC’s design innovation, reliability, performance and continuous success of this AI chip. Since the inception of this AI chip project, it has contributed a total of RM10.9 million in revenue to the company, underscoring the commercial viability of Key ASIC’s technology and its growing presence in the AI semiconductor sector. The company’s AI chip has been deployed in High Performance Computing, industrial automation, medical technology, and edge AI applications. With advanced architecture optimised for accelerated data processing, low power consumption, and scalability, Key ASIC’s AI solutions empower customers to build intelligent, energy efficient, and high-performance systems. “This repeat order is a clear signal of our customer’s confidence in our AI chip solutions,” said chairman and CEO Eg Kah Yee, adding their AI chip continues to deliver exceptional performance and energy efficiency across applications in healthcare, industrial automation, and edge computing. “As we move forward, Key ASIC remains dedicated to pushing the boundaries of AI hardware innovation and creating sustainable value for our shareholders,”said Eg. As Malaysia progresses towards Vision 2030, he added the construction industry remains a vital driver of infrastructure, employment, and economic growth. recent engagements with the RMCD have highlighted their exceptional dedication to balancing industry needs with national fiscal goals. We are immensely grateful for their efforts and responsiveness, said Wee.

non reviewable contracts; splitting of contracts for material and service components; exemption for mixed development projects – residential portion split and B2B exemption on consultancy services. “These provisions not only address immediate fiscal challenges but also lay a strong foundation for the construction sector’s long-term resilience. MBAM’s

These measures, he added, shaped through meaningful engagement with stakeholders, provide critical relief and clarity, enabling contractors, developers, and the broader supply chain to navigate the new tax landscape effectively. He said MBAM welcomed the following key exemptions and facilities, which address the core concerns raised in their previous appeals, namely the

(SST) regime, effective July 1. In a statement yesterday, MBAM president Oliver HC Wee said the recent clarifications and exemptions outlined in Service Tax Policy No. 3/2025 (Amendment No. 1) dated Oct 17 and Service Tax Policy No. 7/2025 dated Oct 24, reflect the government’s commitment to fostering a balanced and sustainable environment for the industry.

representing the collective voice of Malaysia’s construction industry, extended gratitude to the Finance Ministry (MoF) and the Royal Malaysian Customs Department (RMCD) for their responsive and forward-thinking approach to addressing the construction sector’s concerns regarding the Sales and Service Tax

Asean to finalise digital economy pact by mid-2026

o Defa aims to align data, payments and cybersecurity – driving the region’s digital market towards US$2 trillion

“It’s really embodying even more ambitious and forward-looking commitments than Asean has ever undertaken,” he said. He said the Defa will cover key areas including cross-border data governance, digital payments harmonisation, cybersecurity, customs duties on electronic transactions, and the adoption of the UNCITRAL Model Law on Electronic Transferable Records. “All of these are expected to deliver significant benefits for the business community, facilitate trade, promote innovation and further enhance our position as a dynamic and interconnected digital hub,” he said. According to the World Economic Forum (WEF), it will be the world’s first region-wide, binding agreement focused exclusively on digital economy governance. Unlike digital and e-commerce provisions embedded in broader trade agreements such as the recent EU-Singapore Digital Trade Agreement, the WEF said, Defa stands out as a dedicated and comprehensive framework to address the complexities and opportunities of the digital economy, it said. “More than an economic pact, Defa is a strategic blueprint for how our nearly 680 million people can access a digital future that is open, secure and inclusive,” it said. Asean’s digital economy is projected to surge from US$263 billion in 2023 to US$1 trillion by 2030, and could hit US$2 trillion if the Asean Digital Economy Framework Agreement is implemented effectively.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Satvinder said some studies show that if the Defa agreement is implemented in a substantial and comprehensive manner, Asean will be able to harness even greater growth in its digital economic space. “The size of Asean’s digital economy today is touching US$263 billion (RM1.1 trillion) in gross merchandise value, a 15% year-on-year increase from 2023, and by 2030 it is projected to reach US$1 trillion.”

KUALA LUMPUR: Asean’s Digital Economy Framework Agreement (Defa) negotiations are expected to finish by mid-2026, said Asean Economic Community Deputy Secretary-General Satvinder Singh ( pix ). He said the agreement, once finalised, will anchor the region’s relevance and importance to the rest of the world.

“We are thinking and we have been told that there may be even a doubling of the size of our digital economy in Asean to a size of US$2 trillion,” he said. He added that Asean is rapidly adapting to the digital landscape, embracing new technologies as a key driver of growth, competitiveness and productivity across the region. “Data-driven business models, fintech and AI-powered platforms have become the new norms underlying the success of our businesses across the region,” he said. Building on this momentum, Satvinder said the Defa represents a new generation of legally binding digital agreements, unlike anything Asean has undertaken before.

“We are finishing most of the negotiations. Substantially they’ve been finished this year but all of the negotiations are going to be completed by the first half of next year and we are aiming to get the Defa agreement signed in the year 2026,” he said in a special address at the Powering the Intelligent Age Summit, jointly hosted by the Malaysia Centre for the Fourth Industrial Revolution (MYCentre4IR) and the World Economic Forum (WEF) at Sasana Kijang, Kuala Lumpur yesterday. Satvinder said the substantial conclusion of Defa negotiations was announced at the Asean Economic Council meeting on Oct. 24. “That itself marks a historic step towards Asean establishing the world’s first region wide digital economic framework,” he said.