Latest news with #ACCCIM
The Star
3 hours ago
- Business
- The Star
Strengthen logistics sector, govt urged
KUALA LUMPUR: The logistics sector is sounding the alarm over escalating operating costs fuelled by economic uncertainties and geopolitical tensions. Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said it is crucial for the 13th Malaysia Plan and federal budget to prioritise strengthening logistics infrastructure to sustain the sector's competitiveness. 'The ACCCIM Logistics and Transport Committee has been engaging with members to address key issues such as rising operational costs, inspection backlogs and customs clearance efficiency. 'Rising operating costs, driven by increased minimum wage, fuel expenses and upcoming tax implementations on rental or leasing services, pose a significant challenge to our logistics sector. 'The phased 30% tariff hike at Port Klang beginning July 1 is also a pressing issue that could strain industry players,' he said at the ACCCIM Power Chat 6.0 here yesterday. Also present were Transport Minister Anthony Loke, who was the guest of honour, industry players and ACCCIM constituent members. Ng noted that logistics players are also bracing for the indirect effects of US tariffs and the Israel-Iran conflict, which could disrupt supply chains, shipping routes and freight charges. 'Malaysia's total trade reached a record RM2.89 trillion last year, with the freight sector projected to grow by 5.2% annually until 2030. 'The numbers are clear. We must ensure our infrastructure and logistics services are both efficient and adaptable to evolving demands,' he said. Another issue, said Ng, is the backlog of commercial vehicle inspections affecting the implementation of the Industry Code of Practice (ICOP) for transport safety. 'While ICOP aims to enhance safety standards, inspection delays could hinder its effective enforcement. 'Improving customs clearance is urgent as efficient processing is critical for smooth international trade. 'Malaysia's port dwell times are longer than those in Singapore, Indonesia and Vietnam, according to the World Bank's Logistics Performance Index 2023. 'We urge the establishment of a Single Integrated Window to streamline trade and customs operations through digital technology,' he added. On the upcoming 13th Malaysia Plan and federal budget, Ng stressed the importance of focusing on critical areas, particularly the enhancement of logistics and transport infrastructure. 'Strengthening infrastructure, including port upgrades and improving road and rail connectivity, along with developing cold-chain facilities in underserved regions, is vital for ensuring seamless domestic and cross-border supply chains,' he said. He called on the government to establish a transparent and consistent regulatory environment, highlighting that 'clear regulations and uniform application of logistics policies are necessary to reduce uncertainty for industry players navigating compliance and investment decisions'. 'Accelerating digitalisation and promoting green technologies in logistics are crucial. 'Providing grants and incentives will help small and medium enterprises transition to efficient, sustainable operations, especially in high-stakes pharmaceuticals and food safety sectors,' he said. Ng highlighted regional disparities, particularly in Sabah and Sarawak, where inadequate cold-chain infrastructure and inconsistent policy enforcement hinder logistics investment in the region. 'Strategic investment in East Malaysia is not just vital but overdue. Enhancing logistics there will unlock vast economic potential and support regional inclusivity,' he said. Ng also called for enhanced human capital development and road safety. 'A future-ready workforce equipped with digital and technological skills is essential for sustaining Malaysia's logistics competitiveness,' he said, adding that a comprehensive approach to road safety is needed, including road design improvements, safety engineering, public education and strict enforcement. Additionally, Ng highlighted the foundational principles of '4C - Communication, Clarity, Consistency and Collaboration' as essential for fostering effective partnerships between the government and stakeholders. He also commended the Transport Ministry for initiatives like the National Transport Policy and the development of smart port infrastructure. 'Effective execution of these initiatives is crucial for economic impact,' said Ng.
The Star
3 hours ago
- Business
- The Star
Postpone expanded SST to January, urges ACCCIM
PETALING JAYA: The expanded Sales and Service Tax (SST) should be deferred to January next year, starting with 4% for the first two years, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). 'This will allow more time for adequate preparation, which is crucial for ensuring better compliance and smooth implementation,' it said. In a statement yesterday, the association said: 'Our concern is that multiple cost increases are coinciding with a challenging global and domestic economic environment. 'This is exacerbated by the uncertainty surrounding trade tariffs policy and ongoing conflicts in the Middle East, which together create significant economic headwinds. 'The effects of rising costs, which have been felt in 2025, are expected to persist or influence the business and economic landscape in 2026.' Earlier this month, the Finance Ministry said the expanded SST will begin on July 1 when a sales tax of 5% to 10% would be imposed on certain non-essential goods. The service tax will also be expanded to include some financial services such as fund management, investment and merchant banking, and trade financing. However, the government has also announced several revisions such as the exemption of SST on selected fruits, higher threshold for rental and leasing services, and an exemption on selected beauty services. ACCCIM said yesterday that it had written to Prime Minister Datuk Seri Anwar Ibrahim to suggest a postponement of the expanded SST. 'We also asked that taxable services threshold registration to be raised higher to RM3mil for rental or leasing services, and construction services, and the threshold of exemption from paying tax for SME tenants be raised higher to RM2mil in annual sales,' it said.
Malaysiakini
13 hours ago
- Business
- Malaysiakini
ACCCIM urges delay of expanded SST to 2026, lower initial rate
The government was urged to postpone the implementation of the expanded sales and service tax (SST) from July 1, 2025, to January 2026. The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said this is to allow more time for preparation, as several areas still require clarification.
The Sun
a day ago
- Business
- The Sun
ACCCIM urges expanded SST delay to Jan 2026, proposes 4 pct rate until 2027
KUALA LUMPUR: The government is urged to postpone the implementation of the expanded sales and service tax (SST) to January 2026 from July 1, 2025, to allow more lead time for preparation, as several areas still require clarification. While 'cautiously welcoming' the government's announcement on the review of the expanded SST on Thursday, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also called on the government to reduce the expanded SST to a lower rate of four per cent in the first two years (2026–2027) to ease the tax burden on businesses and consumers. The expanded SST applies to additional services (wellness centres, financial, and healthcare) and three new services (rental or leasing, construction works, and education), it said in a statement today. 'Adequate preparation is crucial to ensure better compliance and smooth implementation,' it said, citing concerns over multiple cost increases coinciding with a challenging global and domestic economic environment, which is exacerbated by the uncertainty surrounding trade tariff policies and ongoing conflicts in the Middle East. 'The effects of rising costs, which have been felt in 2025, are expected to persist or influence the business and economic landscape in 2026,' it added. Meanwhile, ACCCIM urged the government to raise the registration threshold for service tax on leasing or rental, as well as construction services, to RM3 million from RM1 million. It also called on the government to raise the tax exemption threshold for small and medium-sized enterprise (SME) tenants to RM2 million in annual sales, from RM1 million announced on Thursday. 'We also propose a longer exemption period of 36 months for non-reviewable and reviewable contracts, to cover all project types due to the nature of the projects and their cycles,' it said. ACCCIM said it will continue to engage with its members and industry stakeholders to provide constructive feedback and solutions to the government to soften the impact of the SST on businesses and households.
The Sun
a day ago
- Business
- The Sun
ACCCIM urges expanded SST delay to Jan 2026
KUALA LUMPUR: The government is urged to postpone the implementation of the expanded sales and service tax (SST) to January 2026 from July 1, 2025, to allow more lead time for preparation, as several areas still require clarification. While 'cautiously welcoming' the government's announcement on the review of the expanded SST on Thursday, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also called on the government to reduce the expanded SST to a lower rate of four per cent in the first two years (2026–2027) to ease the tax burden on businesses and consumers. The expanded SST applies to additional services (wellness centres, financial, and healthcare) and three new services (rental or leasing, construction works, and education), it said in a statement today. 'Adequate preparation is crucial to ensure better compliance and smooth implementation,' it said, citing concerns over multiple cost increases coinciding with a challenging global and domestic economic environment, which is exacerbated by the uncertainty surrounding trade tariff policies and ongoing conflicts in the Middle East. 'The effects of rising costs, which have been felt in 2025, are expected to persist or influence the business and economic landscape in 2026,' it added. Meanwhile, ACCCIM urged the government to raise the registration threshold for service tax on leasing or rental, as well as construction services, to RM3 million from RM1 million. It also called on the government to raise the tax exemption threshold for small and medium-sized enterprise (SME) tenants to RM2 million in annual sales, from RM1 million announced on Thursday. 'We also propose a longer exemption period of 36 months for non-reviewable and reviewable contracts, to cover all project types due to the nature of the projects and their cycles,' it said. ACCCIM said it will continue to engage with its members and industry stakeholders to provide constructive feedback and solutions to the government to soften the impact of the SST on businesses and households.
