Latest news with #AssociatedChineseChambersofCommerceandIndustryofMalaysia
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.
The Star
02-07-2025
- Business
- The Star
‘We may have no choice but to hike prices'
PETALING JAYA: There is no other way to stay afloat but to hike prices with the expanded Sales and Service Tax (SST) having kicked in, industry players and various business chambers have maintained. The food and beverage industry will be among the first to increase prices, with retail space also to see a rise in rentals. Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said depending on the inventory, businesses will have to pay higher sales tax for replenishment of stocks. 'When they do this, they may have to pass on to consumers for goods and services that are subjected to SST. 'Businesses will have to deal with multiple cost increases in the operating environment by managing cost efficiently. 'We have requested a higher registration threshold and exemption threshold for tenanted SMEs under rental and leasing services,' said Ng. SME Association of Malaysia president Chin Chee Seong said price increases will be obvious in a month's time when F&B retailers start feeling the big pinch. 'Some have said that they will look out for the first three months but they, too, will have to make adjustments soon after. 'If you are selling apparel, it will take time for the SST increase to be felt but for F&B, they will have to make adjustments very quickly,' he added. Chin said the association might help out by negotiating with shopping malls to reduce rentals of the F&B outlets. 'Many other products will also see an increase in prices due to factors other than the SST; for example, the electricity tariff hike. 'The SST for rental and leasing will for now be the main factor for increases in prices of products and services,' he added. The annual sales threshold for mandatory SST registration has been raised from RM500,000 to RM1mil for leasing, rental and financial services. However, Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin said despite the increase in the threshold, it was not much when further calculations were made daily and monthly. 'The threshold is still low and may even affect small traders such as those operating kiosks in the malls. The owners usually have more than just one kiosk. 'When shopping malls have to pay 8% extra in rental due to SST to landlords, as much as we would like to say we want to be gracious, at the end of the day we will pass that increment to our tenants,' he added. Ameer said these small traders will then be faced with a triple whammy – rental increase, extra costs for food ingredients and if they employed foreign workers, the newly-imposed EPF contributions. 'There are just too many sudden increases being implemented at the same time,' he added. Malay Businessmen and Industrialists Association of Malaysia (Perdasama) president Mohd Azamanizam Baharon said that with rising costs, many micro, small and medium-sized enterprises (MSMEs) have no choice but to pass on the burden to consumers through price increases. 'This could weaken the competitiveness of local entrepreneurs, mainly in the retail and service sectors. 'The association's 27,000 members have also raised concerns regarding tax compliance and management. 'Many MSME business owners still lack robust accounting or digital systems. This policy change will require new understanding and may lead to unintended compliance errors, increasing the risk of penalties. 'This is particularly true for members in rural areas who have not received sufficient information on the changes. The latest technical information and guidelines are not yet fully understood,' he added. Azamanizam proposes that the government provides temporary tax incentives or rebates for MSMEs to help them adjust. 'We also recommend introducing free or subsidised software for SST compliance and accounting management for small business owners,' he added. Sarawak Federation of Chinese Associations president Datuk Richard Wee said the increase in the SST has two parts which needed to be studied. 'One is the expansion of the goods and services to be included and the other being the impact of the increase from 6% to 8%. 'The increase of 6% to 8% is being felt by industries and the community as prices have been adjusted across the board in all the affected goods and services. This impacts the community and economy as a whole. 'The other aspect is the expansion to include more sectors in the new list. We have not experienced any impact yet as it has only just come into force,' he added.
The Star
29-06-2025
- 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.
Malaysiakini
28-06-2025
- 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
28-06-2025
- 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.
