Malaysia-China Chamber of Commerce Sabah backs call for stamp duty review on employment contracts
Published on: Fri, Jun 06, 2025 Text Size: Dr Tan also urged the Government to grant full exemption for MSMEs, especially in Sabah where the business ecosystem is still developing. Kota Kinabalu: The Malaysia-China Chamber of Commerce (MCCC) Sabah has voiced full support to the recent call by the Sabah Association of Professional Accountants (Sapa) to review the blanket implementation of mandatory stamp duty on all employment contracts under the Stamp Act 1949. MCCC Sabah Deputy President Dr Callee Tan, said while the Chamber recognises the Government's efforts to improve tax compliance and national revenue, the current approach could place an undue burden on micro, small and medium enterprises (MSMEs), particularly in Sabah.
Advertisement 'Many local businesses here are small-scale with limited resources. Without considering factors such as business size, industry and region, this policy risks hurting the very enterprises we need for economic recovery,' she said in a statement, on Thursday. MCCC Sabah proposed that employment contracts for positions with monthly salaries below RM6,000 be exempted from stamp duty to reduce the financial pressure on small businesses and encourage formal employment practices. Dr Tan also urged the Government to grant full exemption for MSMEs, especially in Sabah where the business ecosystem is still developing. 'To maintain compliance and safeguard local employment, these enterprises need supportive and realistic policy measures,' she said. She further recommended deferring enforcement of the ruling until further notice, with comprehensive outreach programmes to help businesses understand and prepare for compliance. 'As a key representative of the business community, we are concerned that this policy, if not properly reviewed, may discourage the use of formal contracts, potentially exposing workers to informal and vulnerable employment arrangements.' MCCC Sabah urged the Ministry of Finance and Inland Revenue Board (LHDN) to engage with industry stakeholders, particularly in less-developed regions, to ensure policies reflect fairness, feasibility and local context. 'Only with balanced and inclusive policy making can we ensure long-term national growth and social well-being,' said Dr Tan. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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