No application needed for one-off RM100 Sara aid
Deputy Treasury secretary-general (Policy) Zamzuri Abdul Aziz said the cash aid did not utilise any e-Wallet service as well.
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New Straits Times
7 minutes ago
- New Straits Times
Govt working with Thai counterparts to facilitate goods movement
KUALA LUMPUR: The government remains committed to strengthening strategic cooperation with the Thai Government to facilitate the movement of goods across border checkpoints, including through the Durian Burung entry point in Kedah. Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong told the Dewan Rakyat that the government was working closely with Thai counterparts to ease goods movement across the northern border and to support export needs for industries such as Kedah Rubber City. "Miti remains committed to strengthening strategic cooperation with the Thai government to facilitate the movement of goods across border checkpoints, including through the Durian Burung entry point. "This effort requires close collaboration with relevant ministries and agencies, such as the Finance Ministry, Home Ministry, the Immigration Department, the Malaysian Border Control and Protection Agency (AKPS), and the Northern Corridor Implementation Authority (NCIA)," he said in response to a question from Nurul Amin Hamid (PN-Padang Terap). Liew, however, acknowledged that the infrastructure at the ICQS Durian Burung Complex was still inadequate to support large-scale trade operations, especially those involving the use of containers. He said the government, through NCIA, was implementing several strategic initiatives, including conducting a feasibility study for a Border Economic Zone to identify potential economic opportunities that could be developed in the border area, including the KRC and surrounding regions near Durian Burung. Other initiatives include regional cooperation under the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Joint Development Strategy (JDS). "These collaborations focus on development in industries such as halal, logistics, rubber, and tourism. The JDS specifically aims to enhance connectivity and international trade policies, strengthening synergy between both countries. "In addition, the Malaysian government remains committed to enhancing strategic cooperation with Thailand through existing platforms such as the Malaysia-Thailand Joint Trade Committee," he said. He added that both parties had agreed to improve trade facilitation, including upgrading infrastructure, logistics systems, and procedures at border checkpoints. These steps, he said, were expected to accelerate Customs clearance processes while reducing time and costs for cross-border goods movement. "Although there have been suggestions to use Songkhla Port in Thailand as an alternative export route, the government is currently focused on maximising the use of domestic ports, especially in Penang and Kuala Perlis. "This initiative aligns with the government's broader strategy to enhance the competitiveness of local ports, while ensuring the economic benefits are fully realised by industry players and local communities," he said. Liew added that the ministry was also open to studying and proposing recommendations to the Finance Ministry to provide various incentives aimed at increasing the usage of local ports when asked on the ministry's short-term plans to encourage investors to use domestic ports for setting up factories or exporting products abroad.
New Straits Times
2 hours ago
- New Straits Times
No move to raise SST threshold for construction sector
KUALA LUMPUR: The government has no plans to raise the Sales and Service Tax (SST) registration threshold for taxable construction services from RM1.5 million to RM3 million, said Deputy Works Minister Datuk Seri Ahmad Maslan. During the Minister's Question Time in the Dewan Rakyat, he said the Works Ministry had not submitted any request to the Finance Ministry to review the threshold, despite requests from the industry. "As of now, there have been no discussions to raise the RM1.5 million threshold. It remains unchanged, and we have no plans to increase it to RM3 million. "This matter falls under the purview of the Finance Ministry. However, we understand the need to consider a revision if necessary. But so far, there has been no request to do so," he said. Ahmad was responding to a question from Abdul Latiff Abdul Rahman (PN–Kuala Krai) on whether the government was prepared to consider the industry's proposal to raise the SST threshold for taxable services, particularly in the construction, rental, and leasing sectors. Currently, construction services are subject to a six per cent service tax. The scope includes all works related to infrastructure, commercial buildings, and industrial facilities. The tax applies when the total value of taxable services reaches RM1.5 million within 12 months, a threshold designed to ease the compliance burden on small and medium-sized contractors. Meanwhile, Ahmad Maslan said the government does not tolerate delays in project delivery. He said companies that fail to complete projects even after two or three approved extensions of time (EOT) would be subjected to Liquidated Ascertained Damages (LAD) fines, calculated based on the number of days delayed. "Delays can cost contractors tens of thousands of ringgit per day. This becomes a serious obstacle. If companies are repeatedly fined for delays, they will not be awarded government projects in the future," he said. He was responding to a supplementary question on how the government handles delayed projects where contractors seek additional costs and EOTs, including the case of the Sungai Durian project, which has already been granted three extensions.
The Sun
6 hours ago
- The Sun
RM100 aid short-term spending booster but not market mover: Economists
PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim's announcement of a one‑off RM100 cash handout has lifted sentiment in consumer‑related stocks, but economists caution that the impact on actual spending and equity performance may be fleeting, with deeper structural challenges still weighing on the economy. The initiative, worth RM2 billion, is designed to provide relief to households and channel spending into local goods and services. However, views among analysts and economists are mixed – some highlight modest gains for low‑income groups and small businesses, while others warn the measure may do little to shift broader market fundamentals. Center for Market Education chief executive Dr Carmelo Ferlito was blunt in his assessment, describing the handout as neither transformative for household consumption patterns nor meaningful for equity markets. 'While the measure is costly at the aggregate level, it is not a needle‑mover at the micro level,' he told SunBiz. 'I struggle to see how RM100 can affect consumption patterns in any sensible way. Economically, it hardly has any logic behind it and appears to have more of a political flavour.' Ferlito also raised concerns over the potential inflationary effects of injecting cash into the economy, particularly if such policies become frequent. 'Monetary injections are the real cause of inflation, a permanent and generalised increase in prices due to the quantity of money growing faster than economic output,' he said, adding that such measures risk masking structural issues in household income and consumer demand. From a sectoral perspective, Dr Ida Yasin, economist at Universiti Putra Malaysia, said the RM100 payment is more likely to generate a temporary boost for retailers and wholesalers rather than driving sustained gains in the stock market. 'This voucher is to boost demand for goods and services in Malaysia, not so much the demand for stocks,' she said. 'Retail and wholesale demand could rise temporarily, especially in essentials like food and household goods, but most stock market movements depend on business fundamentals.' Ida stressed that the handout's impact would likely fade after its expiry in December, underscoring the short‑term nature of the initiative. 'It benefits sellers, wholesalers and producers, from vegetables to chicken, but the up‑and‑down movements in the stock market are quite normal and not directly tied to such measures,' she said. In contrast, Prof Geoffrey Williams, economist and founder of Williams Business Consultancy, sees value in the handout for low‑income households, noting its multiplier effect on domestic consumption. 'RM100 does not sound like much, but it is a 6% boost for someone on minimum wage of RM1,700. For a family of four adults in the B40 group, that's about a 6–7% rise in monthly income,' he explained. Williams estimated the RM2 billion programme could generate RM6 billion in consumption through multiplier effects, providing a small but notable stimulus to economic growth in the second half of the year. 'This will particularly help SMEs in local communities. It won't harm the fiscal deficit because it's funded by subsidy rationalisation savings,' he said. Williams also suggested the initiative could act as a pilot for a more ambitious social welfare reform. 'If this evolved into a monthly universal basic income, it could be a game‑changer for social policy. Universality reduces costs and complexity, and future versions could be made more progressive,' he added. Despite the initial rally in consumer‑linked counters on Bursa Malaysia, analysts caution that sentiment‑driven gains may not be sustainable without underlying earnings growth. Ferlito pointed to external headwinds, including global political tensions and slower economic momentum, as key drivers of investor caution. 'What emerges here is the concern about the economy slowing down due to international tensions, both political and economic,' he said, warning against overestimating the handout's role in market performance. Ida echoed this, noting that investors should watch core consumption data, such as household spending trends within GDP, to gauge any lasting effects. 'Most of the time, it depends on fundamentals rather than short‑term cash injections,' she said. With the cash handout set to conclude by year‑end, attention now turns to whether Malaysia will adopt similar measures in Budget 2026. Williams believes the government should study the current initiative's outcomes to guide future policy design. 'The most important thing is to learn lessons about the impact so that Malaysia can move to a regular monthly payment. Hopefully this can be announced in Budget 2026,' he said. For now, economists agree that while the RM100 handout provides short‑term relief and a modest consumption boost, it does little to address structural income gaps or long‑term growth prospects for consumer stocks. As markets digest the announcement, the focus will likely shift back to corporate earnings, inflation trends and global economic conditions heading into 2026.
