Latest news with #Acccim
New Straits Times
09-07-2025
- Business
- New Straits Times
Ministry's US engagement vital to securing equitable trade for Malaysia: Acccim
KUALA LUMPUR: Investment, Trade and Industry Ministry's continued engagement with the US is crucial for a balanced and fair trade deal for Malaysian industries, a trade body said. The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) said this is given the strong bilateral trade relations between the countries. The US is Malaysia's second largest trading partner and largest export destination, with total trade in 2024 rising nearly 30 per cent to RM324.9 billion (US$71.4 billion). The chamber believes that the government will make its best effort to negotiate for a lower tariff before the revised 25 per cent tariff coming into effect on Aug 1. Acccim said it stands firmly behind the government's principle of having an open discussion with the US in developing a well-considered and comprehensive as well as mutual benefits trade framework for both countries. It also supports the government's position that any negotiations must prioritise the national interest. This is particularly to safeguard the interests of small and medium enterprises (SMEs) and mitigate potential adverse effects on domestic industries and employment. Acccim president Datuk Ng Yih Pyng, however, expressed concerns about the cumulative impact of multiple cost increases on businesses, especially amid a challenging global and domestic economic environment as well as tariffs policy uncertainty. He said the potential impact of tariffs not only would dampen exports but also have negative spillover effects on domestic sectors. "These tariffs headwind and global external uncertainties come at a time when companies are already facing higher operating costs due to the implementation of multiple cost measures. "This adds to the financial strain on businesses, potentially impacting the ability to invest," he added. Hence, the chamber urged the government to reconsider a reduction in the expanded sales and service tax rate to four per cent for the first two years of implementation, down from 6.0-8.0 per cent now.
New Straits Times
12-06-2025
- Business
- New Straits Times
ACCCIM: Consider timing of expanded SST
KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) says it supports the expanded Sales and Services Tax (SST) to strengthen the country's fiscal's position. But there must be careful consideration of the timing and sequencing of measures to ensure they do not unduly burden businesses, especially the micro, small and medium enterprises (MSMEs), it added. Ultimately, increased business costs can lead to higher consumer inflation, according to Acccim president Datuk Ng Yih Pyng. Ng said the expansion of the SST at a time of the evolving US tariff policy uncertainty and potential global economic slowdown would contribute to domestic economic and business conditions uncertainty. "With businesses already facing rising operating costs, implementing expanded SST could further burden businesses with increased costs. "Ultimately, increased business costs, if not absorbed, would be passed onto consumers, potentially dampen discretionary consumer spending due to higher prices of non-essential goods and a wider range of taxed services." Ng added that the service tax on rental and leasing in particular would result in higher operating cost for many businesses given a low threshold of exemption from paying service tax for MSMEs with annual sales below RM500,000. "In this regard, we appeal to the government to consider deferring the implementation of the expanded SST to a later date, when macroeconomic conditions are more certain. "It must be noted that the deferment of e-invoicing implementation for businesses with annual income or sales between RM1 million and RM5 million (Phase IV) from July 1, 2025 to Jan 1, 2026 reflects the government's acknowledgment and consideration of businesses' concerns regarding its impact on operating costs," he said. Acccim also called for a review of the threshold exemption from the SST expansion, to be raised higher to RM2 million annual sales, to relieve the burden on more micro and small businesses.
