Bursa Malaysia rebounds to close at day's high on bargain hunting
KUALA LUMPUR: Bursa Malaysia reversed its morning losses to close higher, supported by bargain hunting and sustained local investor interest.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.87 points, or 0.92 per cent, to 1,516.61 from Friday's close of 1,502.74.
The index opened 9.55 points lower at 1,493.19 and fell as low as 1,488.89 in the morning session before trending up to close at its intraday high.
The broader market, however, was negative, with losers outpacing gainers 697 to 274, while 490 counters were unchanged, 932 untraded and 41 suspended.
Turnover surged to 3.09 billion units worth RM1.91 billion against 2.6 billion units worth RM3.37 billion on Friday.
UOB Kay Hian Wealth Advisors Sdn Bhd investment research head Mohd Sedek Jantan said the FBM KLCI recovered from an early dip below a key psychological level as markets reacted impulsively to the United States' strikes on three Iranian nuclear facilities over the weekend.
He noted that while the initial sell-off reflected heightened geopolitical anxiety, the index rebounded strongly, supported by bargain hunting and sustained local investor interest.
"Historically, markets tend to absorb such shocks relatively quickly, with the direct impact of geopolitical risks often proving short-lived," he told Business Times.
Sedek added that the ongoing Iran-Israel conflict has led to a spike in global oil prices, but the immediate pass-through to domestic inflation remains limited.
Meanwhile, he said, export-oriented stocks may derive temporary support from a strengthening ringgit, as currency appreciation can lower import costs and reflect greater investor confidence.
"However, this advantage may be offset if global demand slows or trade orders are delayed—developments that could weigh on revenue visibility and corporate earnings in the coming quarters," he said.
Even though the ringgit was slightly weaker today, Sedek said the exchange rate is still considered stronger compared to last year's average.
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New Straits Times
37 minutes ago
- New Straits Times
F&B operators aim to stay resilient amid SST and cost pressures
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"Our members are encouraged to be transparent with customers by displaying breakdowns of pricing and tax where possible, as well as communicating the reason for any price adjustment clearly to avoid misunderstanding or loss of trust," he said. Meanwhile, SME Association of Malaysia national president Dr Chin Chee Seong said a price increase in the F&B sector is widely expected following the implementation of the revised SST, driven largely by the tax on commercial rentals, which is set to cascade through operating costs and ultimately impact menu prices. "For many F&B operators, rental constitutes a significant portion of fixed overheads, especially in high-traffic malls or prime commercial locations. "The imposition of an 8 per cent tax on rental charges directly increases cost burdens, which most businesses find difficult to absorb without adjusting their pricing structures," he added. Chin also said that the sector is highly price-sensitive; hence, marginal increases can influence consumer behaviour. "Operators fear that price hikes may lead to lower footfall, reduced frequency of visits, or a shift in customer preferences towards home-cooked alternatives or lower-cost options," he said. Short notice and uneven readiness While some larger chains are ready for the rollout, many small and medium-sized operators remain unprepared. The Small and Medium Enterprises Association (Samenta) national president Datuk William Ng said larger SMEs, especially those in the retail and F&B sectors with modern point-of-sale (POS) systems, tend to be more prepared, while smaller ones are still in the midst of adjusting. "It's not as simple as updating the POS. You need to reprint materials, price lists, and signages and train employees on the expanded SST, especially if you are caught with multiple tiers of SST. "In fact, some manual POS do not have the option of adding a second or third button for varying SST levels," he said. Ng added that many SMEs remain hesitant about whether to pass the tax burden onto consumers, caught between the risk of losing customers in a highly competitive, price-sensitive market and the strain of absorbing additional costs amid weak consumer spending. "Micro and small enterprises are disproportionately affected, despite the revenue threshold. Many do not have access to proper accounting support or digital tools, making compliance more challenging. "Awareness and understanding of SST regulations are also limited in this group. Without targeted outreach and education, there is a risk of non-compliance, either inadvertently or out of necessity," he warned. Bumiputra Retailers Organisation president Datuk Syed Naqiz Shahabuddin Syed Abdul Jabbar added that although larger franchises are likely compliant, many SMEs and independent eateries are still adapting, especially those newly crossing the RM1.5 million annual revenue threshold for mandatory registration. Despite a Customs Department grace period for penalty-free adjustments until December 2025, he said uncertainty around taxable services and implementation procedures persists. "The transition period is tight and many are still finalising changes, particularly in ensuring system accuracy and customer communication," Syed Naqiz Shahabuddin said. Datuk Jawahar said not all POS vendors serving PRESMA members are ready to deliver the necessary system updates, especially for operators still using older systems. "There's also confusion on how exactly to apply SST for dine-in versus takeaway or delivery orders, which complicates system setup and pricing," he added. 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"Most SMEs anticipate that the increased tax burden will inevitably be passed down to consumers, which is expected to contribute to rising inflation, with many estimating inflation could rise up to 5.0 per cent in 2025, driven by higher retail and service prices," he said. While businesses exceeding RM1 million in annual revenue are clearly mandated to register and comply, Chin said even those below the threshold face confusion and operational strain, especially with the upcoming implementation of e-Invoice. Calls for policy review and gradual rollout In response, associations are urging the government to revise the SST implementation approach. PRESMA called for a grace period for enforcement, clearer sector-specific guidelines and a public awareness campaign to manage expectations. "We are not against taxation, but we believe a more gradual, better-informed rollout will ensure fairness and long-term sustainability for both the government and the business community," Jawahar said. The Bumiputra Retailers Organisation proposed deferring SST on rental services until economic conditions stabilise and raising the SST registration threshold for rental income to RM5 million to support micro and small businesses. The SME Association of Malaysia urged the government to immediately postpone or reconsider the implementation, particularly with regard to rental and leasing charges, which pose significant risks to business sustainability across multiple sectors. Chin said the revised tax will dampen the growth and resilience of SMEs, many of whom are already struggling with rising operational costs and limited margins. He said the additional tax burden will inevitably be passed on to consumers and is likely to drive inflation in the coming year, further weakening consumer spending and economic stability. "We call for a comprehensive, evidence-based impact assessment, coupled with meaningful engagement involving all affected stakeholders, including industry associations, SMEs and business leaders. "A policy of such significance must be shaped through inclusive dialogue to ensure that it is both economically sustainable and socially equitable," he added.
New Straits Times
2 hours ago
- New Straits Times
SST revision welcomed, but broader relief needed for MSMEs
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The Star
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- The Star
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