Latest news with #Barjoyai
Straits Times
01-07-2025
- Business
- Straits Times
Support for Malaysians available as expanded Sales and Service Tax begins
Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. PHOTO: BERNAMA Support for Malaysians available as expanded Sales and Service Tax begins PETALING JAYA - With the expanded Sales and Service Tax (SST) kicking in on July 1, prices of many items are expected to rise. But it's not all bad news. There are a host of support mechanisms in place for not just the B40 but also M40 households to ensure they can cope. Government initiatives – from direct cash aid and electricity rebates to healthcare schemes and discount cards – are available to help ease the burden and stretch every ringgit further. Most of these require registration, which can easily be done online. Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. However, many remain unaware of the assistance available, says economist Professor Barjoyai Bardai. For M40 households earning below RM100,000 (S$30,321) a year, the support measures include the mySalam health takaful, which offers critical illness coverage and hospital income aid. The Skim Jaminan Kredit Perumahan (SJKP) also provides housing loan guarantees of up to RM500,000 for M40 and self-employed individuals. Additionally, the Kad Pekerja Madani gives unionised workers access to discounts of up to 30 per cent on essentials, travel and services. 'The problem with Malaysian consumers is their perception. 'They're quick to assume the worst, often thinking: 'What other burdens are going to be placed on my shoulders today?',' said Prof Barjoyai, adding that if people changed their mindsets and started looking for positives, they would see how these initiatives can really help. 'Yes, the government can always improve by, say, increasing the aid amount. 'But these programmes exist, and people should take advantage of them.' Prof Barjoyai suggested that the government consider tapping into widely-used platforms like WhatsApp to send information directly to the public. 'That's where people are most active, and a simple message highlighting the programmes could catch their attention.' THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
01-07-2025
- Business
- The Star
Support available as expanded SST begins
PETALING JAYA: With the expanded Sales and Service Tax (SST) kicking in today, prices of many items are expected to rise. But it's not all bad news. There are a host of support mechanisms in place for not just the B40 but also M40 households to ensure they can cope. Government initiatives – from direct cash aid and electricity rebates to healthcare schemes and discount cards – are available to help ease the burden and stretch every ringgit further. ALSO READ: Most of these require registration, which can easily be done online. Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. However, many remain unaware of the assistance available, says economist Prof Dr Barjoyai Bardai. CLICK TO ENLARGE For M40 households earning below RM100,000 a year, the support measures include the mySalam health takaful, which offers critical illness coverage and hospital income aid. The Skim Jaminan Kredit Perumahan (SJKP) also provides housing loan guarantees of up to RM500,000 for M40 and self-employed individuals. Additionally, the Kad Pekerja Madani gives unionised workers access to discounts of up to 30% on essentials, travel and services. 'The problem with Malaysian consumers is their perception. 'They're quick to assume the worst, often thinking: 'What other burdens are going to be placed on my shoulders today?',' said Barjoyai, adding that if people changed their mindsets and started looking for positives, they would see how these initiatives can really help. 'Yes, the government can always improve by, say, increasing the aid amount. 'But these programmes exist, and people should take advantage of them.' Barjoyai suggested that the government consider tapping into widely-used platforms like WhatsApp to send information directly to the public. 'That's where people are most active, and a simple message highlighting the programmes could catch their attention.'
New Straits Times
27-06-2025
- Business
- New Straits Times
SST tweaks bring big relief for rakyat
KUALA LUMPUR: The government's move to fine-tune the Sales and Service Tax (SST) will not significantly affect its revenue collection but will have a positive impact on the people, said an economist. Professor Emeritus Dr Barjoyai Bardai, provost at Malaysia University of Science and Technology, said the expanded SST was expected to boost tax collection to RM51.7 billion in 2025, up from the earlier forecast of RM46.7 billion. "I don't see this (tax collection) being affected too much by the exemptions for the beauty sector, apples, oranges and dates, as well as the increased SST registration threshold from RM500,000 to RM1 million for leasing, rental and financial services. "At most, I believe that it would be around RM1 billion to RM2 billion. However, the tweaks will be a big relief for those on the ground." Barjoyai said the exemption for the entire beauty sector would help control inflation as personal care was a key expenditure for many people. "In May, the inflation rate for personal care stood at 3.7 per cent, so this is the right move," he said, citing Statistics Department figures. Barjoyai said the increase of the SST registration threshold to RM1 million would see many micro, small and medium enterprises exempt from paying the eight per cent tax on leasing, rental and financial services. "This is especially important in rural and suburban areas, and for small shops in apartments and flats. Their sales will not reach RM1 million a year." Still, he said, retailers in malls and those with many branches would likely be affected, though he did not believe they would immediately raise prices. "The retail sector is price-sensitive, and competition is fierce. I think they will absorb the increase in costs in the short run and only pass on the costs in the longer run." On the SST exemption for apples, oranges and dates, Barjoyai said this was appropriate as local fruits were not always cheaper than imported fruits. "Mangoes, rambutans and durians, for example, can cost a lot more than apples and oranges. "Overall, the tweaks are a good move, and it indicates that the government is listening to the people." Economist Dr Geoffrey Williams said the SST adjustments would not significantly alter the government's overall tax collection. "The SST will still be effective in improving government income to provide more money for priorities such as health, education and social protection." He added that exempting imported fruits and beauty services would keep prices steady and prevent disruptions to consumer behaviour. Consumers, however, must remain alert and ensure businesses did not take advantage of the situation by unjustifiably raising prices, he added. "Overall, it is a signal that the government is making modest changes and taking stakeholder views into account. "This is a positive approach to tax policy and should make implementation easier," he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said he believed the tweaks reflected the government's intention to strike a balance between financial discipline and taking care of the people's interests. "To some degree, it is a pragmatic move. Perhaps, there should be more time for consultation with industry players so that any final adjustments can be made before the rollout of such measures," he added.
Sinar Daily
24-06-2025
- Business
- Sinar Daily
Strait of Hormuz closure threatens Malaysia's food supply, economist forecasts price hikes
SHAH ALAM – A sharp increase in the prices of imported food is expected to be among the most significant direct consequences Malaysia may face if a full-scale war erupts following the United States' involvement in the Iran-Israel conflict. Malaysia University of Science and Technology (Must) economist, Professor Emeritus Dr Barjoyai Bardai, stated that the conflict, which has entered a new phase, could lead to the closure of the Strait of Hormuz, a critical trade route for the country. According to him, imported foods such as fruits and vegetables are among the goods likely to experience a significant price surge if tensions in the region worsen. 'Malaysia, as an open economy that imports more than RM90 billion worth of food, will certainly be affected by this conflict. "It can be said that the food sector will be one of the hardest hit," he said. He stated that the upcoming expansion of the Sales and Service Tax (SST) on July 1, which includes imported fruits and vegetables, could worsen the impact. 'So, the impact will be even greater. Prices of imported goods will rise, then domestic taxes in Malaysia will also increase and inevitably this situation will have a major impact on food items. 'Given the increasingly volatile developments, we can expect the prices of imported food-based items such as vegetables and fruits to go up. "We also anticipate a knock-on effect on cooked food, and prices at restaurants are also expected to rise,' he told Sinar. Dr Barjoyai added that all parties must prepare to face widespread impacts due to the conflict, as it would affect not only imported goods but also locally produced products.
The Star
24-06-2025
- Business
- The Star
Brief dip in ringgit predicted
PETALING JAYA: The ringgit is expected to weaken in the immediate aftermath of the US-Israel-Iran conflict, but analysts believe the depreciation will be short-lived, says economist Prof Emeritus Dr Barjoyai Bardai. He said the ringgit could fall to around RM4.40 against the US dollar over the next three months, before stabilising as markets adjust. 'Consumer perception will play a key role during this period,' he said, stressing that how Malaysians interpret ongoing developments will directly influence domestic spending trends. Prof Barjoyai said the US dollar might strengthen in the short term due to perceived dominance but this trend is unlikely to last. 'In the mid to long term, the world will start distancing itself from the United States and the dollar,' he said, adding that anti-US sentiment, especially among Muslim-majority countries, could lead to a drop in global demand for the greenback. These concerns are compounded by escalating tensions in the Middle East, particularly Iran's latest warning to close a key energy chokepoint. If implemented, the move could send Brent crude prices soaring well above US$100 (RM428.65) per barrel, according to analysts from JPMorgan, Goldman Sachs and Deutsche Bank. Dr Barjoyai also said the closure of the Strait of Hormuz might trigger global supply disruptions, leading to short supply and rising costs. Even if the strait isn't fully closed, Iran may impose surcharges or fees, which will still drive up costs of imports and exports, he added. He said businesses, particularly wholesalers, retailers, SMEs and microenterprises would likely raise their prices due to higher fuel costs, as diesel and petrol are key to their operations. 'With Malaysia's economy so dependent on consumer spending, perception is critical. If people expect the worst, growth will contract and inflation will accelerate,' he said. To ease the burden, he suggested the government consider postponing the sales and service tax (SST) expansion and RON95 subsidy rationalisation, or at least communicate clearly how minimal the actual impact would be. Yesterday, Iran's parliament announced plans to possibly close the Strait of Hormuz in retaliation for recent US and Israeli strikes on its nuclear and military facilities. Senior fellow at the Nusantara Academy for Strategic Research Dr Azmi Hassan said Malaysia may face economic repercussions if tensions between the United States, Israel and Iran escalate further, particularly if Iran closes the Strait of Hormuz. He said any disruption would still impact fuel prices and the wider economy. 'The Strait of Hormuz is a critical route. If it's closed, the whole world suffers. Most Asean nations, including Malaysia, are dependent on Gulf oil,' he said. Senior lecturer at UiTM and director of the Asia West East Centre Dr Abdolreza Alami echoed a similar view, saying Malaysia's energy security faces serious risks if the Strait of Hormuz is disrupted amid the escalating military action. He said Malaysia sources nearly 30% of its oil and gas from the Persian Gulf, with the strait acting as a vital artery for global supply. Any closure or instability there could trigger a fuel price surge, he added. He believes that oil prices could possibly hit US$150 (RM642.97) or more per barrel and petrol prices soaring beyond €2.5 (RM12.24) per litre. He said that would drive up costs across key Malaysian sectors including electronics, petrochemicals and palm oil, undermining their global competitiveness. 'We are also seeing a 20-fold spike in insurance costs for ships in the Gulf, which could cause major shipping delays at Port Klang and Singapore,' he added. Abdolreza also cautioned that the conflict could derail Asean's growing economic engagement with the Gulf Cooperation Council (GCC) countries, undermining regional efforts to reduce Western dependency. A united Asean response, he said, could boost the grouping's global credibility as a champion of justice and sovereignty.
