Latest news with #InvestASEAN-MalaysiaConference2025
The Sun
15 hours ago
- Business
- The Sun
US responds positively to Malaysia's tariff approach, says minister
KUALA LUMPUR: The United States (US) has responded positively to Malaysia's approach and engagements on tariff issues and proposals, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said Malaysia's proactive engagement and approach with the US is to understand the issues involved and to work together to navigate a path to find a win-win situation. The US responded positively to Malaysia's approach. Trade teams from both sides discussed how to navigate forward, he said. 'The two teams held (productive) discussions and negotiations; progress is being made along those lines,' he said during a fireside chat at the Invest ASEAN-Malaysia Conference 2025 moderated by Bursa Malaysia chief executive officer Datuk Fad'l Mohamed today. According to Amir Hamzah, Malaysia has always been non-retaliatory. It wants to work with the US to seek ways to improve trade for both sides. He noted that the trade deficit between Malaysia and the US comprised key components such as the electronics and semiconductor industries. He said many US-based multinationals are exporting to the US, and Malaysia was pleased when the US suspended tariffs for the semiconductor sector. It recognised that this was a critical asset that they wanted to protect. 'But for Malaysia, it was important because it shows there is a lot of cross dependency between Malaysia and the US,' he said. The minister also noted that Malaysia highlighted to the US in the negotiations that global supply chains are integrally linked and are difficult to decouple without significant consequences.
The Star
21 hours ago
- Business
- The Star
Tariff: Positive response from US to Malaysia's approach
KUALA LUMPUR: The United States (US) has responded positively to Malaysia's approach and engagements on tariff issues and proposals, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said Malaysia's proactive engagement and approach with the US is to understand the issues involved and to work together to navigate a path to find a win-win situation. The US responded positively to Malaysia's approach. Trade teams from both sides discussed how to navigate forward, he said. "The two teams held (productive) discussions and negotiations; progress is being made along those lines," he said during a fireside chat at the Invest ASEAN-Malaysia Conference 2025 moderated by Bursa Malaysia chief executive officer Datuk Fad'l Mohamed today. According to Amir Hamzah, Malaysia has always been non-retaliatory. It wants to work with the US to seek ways to improve trade for both sides. He noted that the trade deficit between Malaysia and the US comprised key components such as the electronics and semiconductor industries. He said many US-based multinationals are exporting to the US, and Malaysia was pleased when the US suspended tariffs for the semiconductor sector. It recognised that this was a critical asset that they wanted to protect. "But for Malaysia, it was important because it shows there is a lot of cross dependency between Malaysia and the US," he said. The minister also noted that Malaysia highlighted to the US in the negotiations that global supply chains are integrally linked and are difficult to decouple without significant consequences. - Bernama
The Sun
a day ago
- Business
- The Sun
RON95 subsidy rationalisation in final stages, says finance minister
KUALA LUMPUR: The government is in the final stages of preparing the RON95 subsidy rationalisation, set to begin in the second half of this year, Finance Minister II Datuk Seri Amir Hamzah Azizan announced today. Speaking at the Invest ASEAN-Malaysia Conference 2025, he stressed that the move aims to prevent leakages and ensure wealthier individuals and businesses contribute fairly. 'This will allow fiscal strength to secure subsidies for those who truly need them,' he said. The approach mirrors the recent diesel subsidy rationalisation, part of broader efforts to strengthen public finances. The government also plans to expand the Sales and Service Tax (SST) to diversify revenue streams. Amir Hamzah highlighted Malaysia's progress in fiscal consolidation, with the budget deficit-to-GDP ratio improving to 4.1% last year, beating the 4.3% target. The goal for 2025 is a 3.8% deficit, aligning with the Public Finance and Responsibility Act 2023's medium-term target of 3%. 'Revenue-enhancing measures, tax efficiency, and compliance will help achieve this,' he said. The SST expansion is expected to generate RM10 billion despite recent exemptions. Looking ahead, Budget 2026 and the 13th Malaysia Plan (13MP) will focus on pragmatic policies to ensure economic stability and fairness. 'Reforms in judicial, fiscal, and social sectors will support growth and resilience amid global volatility,' he added.
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Exclusion of imported food from SST won't affect RM10b target
by GLORIA HARRY BEATTY THE recent exclusion of selected imported food items from the expanded Sales and Service Tax (SST) is not expected to impact the government's RM10 billion tax revenue target, said Finance Minister II Datuk Seri Amir Hamzah Azizan (picture). The government recently revised the SST expansion to exclude some imported foods such as apples, oranges and dates. Amir noted that the government made certain adjustments based on public feedback. 'These are things that are probably now part and parcel of the norm in society,' he said during his fireside chat 'Malaysia: Macro Resilience, Fiscal Consolidation' at the Invest ASEAN-Malaysia Conference 2025 today. Despite ongoing fiscal adjustments, the government remains confident in meeting its collection targets. 'We are confident because the economy is still puttering along…I do know my team is always very conservative in the estimate,' he added. On a different note, Amir Hamzah pointed out that the government has increased the service tax registration threshold for leasing, rental and financial services from RM500,000 to RM1 million, which was to ensure that small and medium enterprises in Malaysia are not affected. 'It goes back to the philosophy of much more progressive, targeted approaches as opposed to blanket mechanisms. When we decided to do the revision, we also looked at what was going to be the impact on financials,' he said. On June 27, the government announced a revision to the SST framework, following extensive feedback from the public and engagement with industry stakeholders on the proposed expansion. Imported mandarin oranges and dates are exempted from the SST, while essential goods such as rice and local fish will remain tax-free. The government has also exempted the proposed service tax on beauty and personal grooming services such as manicures, pedicures, facials, barber services and hairdressing.
Borneo Post
2 days ago
- Business
- Borneo Post
Finance Minister II: RON95 subsidy rationalisation in final stages
The goal for the RON95 subsidy rationalisation is to ensure that the government plug leakages and that businesses and the wealthy contribute their fair share. – Bernama photo KUALA LUMPUR (July 1): The government is focusing on finalising the details of the RON95 subsidy rationalisation, which will begin in the second half of this year, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He noted that just as it was with the diesel rationalisation, the goal for the RON95 subsidy rationalisation is to ensure that the government plug leakages and that businesses and the wealthy contribute their fair share. 'This is so that we have the fiscal strength to secure subsidies for the people who genuinely need them. 'The same careful approach applies to the expansion of Sales and Service Tax (SST) — it diversifies revenue and is part of prudent expenditure management,' he said in his keynote address at the Invest ASEAN-Malaysia Conference 2025 today. Amir Hamzah noted that the government's commitment to fiscal consolidation remained strong as the country had achieved a budget deficit-to-gross domestic product (GDP) ratio of 4.1 per cent last year, better than the official target of 4.3 per cent. He said that the government is now targeting a 3.8 per cent fiscal deficit for 2025 and is staying consistent with the Public Finance and Responsibility Act 2023 to reduce the deficit to three per cent in the medium term. 'This will be accomplished through revenue-enhancing measures, tax system efficiency and taxpayer compliance. 'This year we are doing the SST expansion and the RON95 subsidy rationalisation, and hopefully that will add a revenue base along the way,' he said, adding that the government is confident of getting the additional RM10 billion revenue from the SST expansion, despite recent additional exemptions. In the meantime, Amir Hamzah emphasised that Budget 2026 and the soon-to-be-tabled 13th Malaysia Plan (13MP) will focus on being pragmatic, sensible and driving continuity in the nation's progress. 'While it is too early to share details, I can say that it will be yet another effort in securing our economic future, responding where necessary to current economic headwinds and building a fairer, more equitable society,' he said. He added that several other reforms are in the pipeline to support economic growth, build credibility and set governance examples. 'These include the judicial and institutional reform, fiscal and public sector reform, social protection and inclusivity reforms, and digital and innovation-led transformations. 'Current global volatility makes reforms more, not less, urgent. Institutional strengthening, fiscal discipline, and innovation capacity-building are complements to sustainable, resilient economic expansion that is capable of weathering future global disruptions,' he added. – Bernama Amir Hamzah Azizan fuel subsidy rationalisation lead RON95
