Latest news with #LawrenceLow
The Star
13-07-2025
- Business
- The Star
SST on stationery will drive up school costs, says MCA
KUALA LUMPUR: Imposing the expanded Sales and Service Tax (SST) on stationery and paper products will burden students, parents and educators, undermining the national education agenda, says MCA. Its Economic and SME Affairs Committee chairman Datuk Lawrence Low ( pic, below ) said taxing essential educational supplies is akin to charging teachers and students from low-income families. 'The focus of taxation should be on non-essential and luxury items, not basic educational tools. 'Taxing these necessities is a blow to universal education and contradicts the government's commitment to empowering society through learning,' he told a press conference yesterday. Low said the new SST charges are expected to push the prices of paper and stationery up by more than 10%. This would likely lead to increased school fees as educators and tuition centres pass down operational expenses, he added. 'The B40 and M40 families will be hit the hardest as they now face higher costs preparing for the new school term. 'If even a pencil is taxed, that's not fiscal progress – it's social regression,' he said. Low also highlighted the impact on the micro-, small- and medium-sized enterprises (MSMEs) involved in Malaysia's stationery trade, from wholesalers and retailers to bookshops and independent stationery stores. 'Most of these businesses are hit with SST at multiple levels, which they cannot pass on entirely to consumers. Some customers are holding back from buying due to higher prices. Businesses are forced to absorb the cost or risk closure. This is not fair taxation – it is pushing MSMEs to the brink,' he said. Low noted that the lack of clarity in SST's scope and the inability to offset input taxes could open the door to tax evasion while penalising law-abiding businesses. 'They are taxed on incoming stock and again when selling it, with no system for tax deduction, unlike the GST model. This leads to cascading costs and ultimately higher prices for the end consumer,' he added. He urged the government to exempt frequently used stationery from SST and called for a complaints and advisory channel to help businesses navigate the grey areas of the SST regime. Low also called on the Finance Ministry to review the SST's impact on small industries and consider interim tax relief or transition assistance. Ultimately, he said Malaysia should aim for a more transparent, fair and efficient tax structure – including the possibility of reintroducing a refined version of the Goods and Services Tax (GST 2.0). The expanded SST, which took effect this month, now covers more goods and services with tax rates ranging from 5% to 10%. The Federation of Stationers and Booksellers Association of Malaysia president, Tan Chong Ong, said many businesses have been notified by their suppliers of a potential price hike, particularly in paper products.
The Star
11-07-2025
- Business
- The Star
MCA urges govt to look into e-commerce platform's seller fees
KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry, together with the Communications Ministry, should conduct a joint investigation into whether the latest fee structure introduced by a major e-commerce platform complies with fair trade and transparency principles, says MCA. MCA's economic and SME affairs committee chairman Datuk Lawrence Low said the revised fee structure – set to be implemented by e-commerce platform Shopee will affect nearly every stage of a seller's operations. These include transaction fees, marketplace commissions, platform support charges, withdrawal fees, promotional activity costs, shipping surcharges, and deductions tied to its "pay later" instalment scheme. He said the charges are not only excessive but also risk driving many micro, small and medium-sized enterprises (MSMEs) to the brink, particularly those already grappling with rising operational costs and shrinking margins. While some of the charges may seem small individually, Low warned that their cumulative effect would place a significant financial strain on sellers and ultimately lead to higher prices for consumers. One of the most contentious elements, he said, is the platform support fee amounting to RM0.50 plus 8% SST (RM0.54 per order) – a charge that applies to most active sellers, particularly those with listings older than 120 days or more than 100 completed orders. "This fee, alongside increased transaction charges and higher 'pay later' commission rates, has sparked widespread concern among sellers," he said. "Many sellers have told us that platform commissions are now eating into their profits. Some are even considering leaving the platform altogether. When that happens, it's not just the sellers who suffer – consumers will also be affected by rising prices, and the vibrancy of Malaysia's digital economy will be at risk," Low said at a press conference at Wisma MCA on Friday (July 11). He warned that e-commerce platforms, which once served as enablers for local entrepreneurs, are in danger of becoming extractive and monopolistic if left unchecked. Low cautioned that such practices could trigger a domino effect, with other platforms adopting similar measures, thereby distorting competition and further weakening the position of Malaysian businesses in the digital marketplace. He urged the government to take the lead by launching a joint investigation through the Domestic Trade and Cost of Living Ministry and the Communications Ministry, to assess whether the fee increases are consistent with fair trade principles. Low also called on the government to expedite the introduction of a code of conduct for e-commerce platforms and to implement a platform fee declaration mechanism to ensure all future fee changes are made transparently and with proper oversight. He stressed that supporting MSMEs – which form the backbone of the local digital economy – is essential for long-term national growth. "Without proper safeguards, we risk giving dominant players unchecked power to dictate terms, which will hurt the development of home-grown brands and entrepreneurs," he said. At the same time, Low urged Shopee to postpone the rollout of its new fees to give sellers sufficient time to adjust. He also called for complete transparency in the calculation and breakdown of all charges. "This is not about rejecting digital progress – it's about ensuring that digitalisation benefits everyone in a fair and balanced way," he said. "We must build an ecosystem where platforms, sellers, and consumers can all thrive together." Low concluded by stressing that Malaysia cannot afford to be passive in the face of growing market concentration. "The government must take the lead in protecting our local businesses and ensuring the development of a sustainable and inclusive digital economy," he said.
The Star
23-06-2025
- Business
- The Star
MCA urges government to drop 5% tax on imported fruits, calls for stakeholder consultation
KUALA LUMPUR: The government should withdraw the 5% sales tax on imported fruits and engage stakeholders in consultations to assess the real impact of the tax expansion. MCA vice-president Datuk Lawrence Low said the move to impose tax on imported fruits such as apples, oranges, pears and grapes widely consumed by Malaysians would place an unfair burden on consumers and small traders. 'These are not luxury items. Fruits are part of the daily diet for many families and are used in religious and cultural practices. Taxing them will raise costs at every level and directly impact the rakyat,' he said at a press conference on Monday (June 23). Low said that while the government promotes healthy eating, taxing essential imported fruits sends a contradictory message, particularly as many of these fruits are not produced locally in sufficient quantities. 'We support the consumption of local produce, but Malaysia's climate doesn't allow for large-scale cultivation of temperate fruits. Apples and oranges, for example, remain staples in most households.' Low, who is also the MCA's economic and SME affairs committee chairman, warned that from July 1, small businesses will face increased operational costs, including expansion on SST, a hike in freight charges at Port Klang, and higher electricity tariffs. 'This does not help SMEs. If retailers absorb the added cost, they will face high operating costs; if they pass it on, the consumer pays more. Either way, it adds pressure.' 'Small traders are already struggling to comply with e-invoicing and other regulatory requirements. This tax is like death by a thousand cuts — it's affecting their ability to survive,' he said. Low highlighted that fruits such as apples and grapes are commonly used during festivals and ancestral prayers, while dates (kurma) hold cultural significance for the Malay community. He stressed that such fruits are everyday essentials, not luxuries. 'There's a misconception that imported fruits are only for the wealthy. But they're part of our food culture — found in supermarkets and wet markets alike. Everyone, regardless of income, consumes them.' He said MCA had received many calls from traders and the public expressing concern over rising costs and frustration with what they see as unfair taxation. 'This is not about rejecting taxation — it's about doing it wisely. The government must take a long-term view and avoid policies that erode public trust.' Low reiterated MCA's call for the SST to be replaced with a streamlined Goods and Services Tax (GST) at a lower rate of 3% to 4%, to avoid cascading taxes and improve transparency. 'MCA will continue to be a voice for the people. We stand with those struggling under the rising cost of living and will keep conveying their concerns to the government,' he said. On June 9, the government announced a targeted review of the SST rate, which will take effect from July 1. The sales tax rate will remain the same for essential goods, while a rate of 5% or 10% will be imposed on non-essential or discretionary goods. At the same time, the scope of the service tax has also been expanded to cover six new services, namely rental or leasing, construction, finance, private healthcare, education and beauty.
Malaysiakini
07-06-2025
- Business
- Malaysiakini
MCA proposes reforms to stamp duty on employment contracts
MCA suggested several improvements to the employment contract stamp duty to bring it to modernise policies to reflect current economic realities. Party vice-president Lawrence Low proposed that the existing exemption threshold be increased from RM300 per month to RM3,000, in line with the personal income tax exemption level, as a short-term measure.
New Straits Times
06-06-2025
- Business
- New Straits Times
MCA tells govt to define small businesses entitled to LPG
KUALA LUMPUR: The government must specify which micro and small businesses are entitled to use subsidised liquefied petroleum gas (LPG). MCA vice-president Datuk Lawrence Low said the Domestic Trade and Cost of Living Ministry (KPDN) must define what constitutes a "micro and small-scale food and sales business" amid growing confusion over the enforcement of subsidised LPG use under Ops Gasak. Low said the lack of details had left many traders uncertain and anxious. "Who exactly are these businesses? Are they classified by the volume of LPG they consume, their income levels, or some other benchmark? "Or will enforcement officers be left to make these determinations on the ground during Ops Gasak? The absence of clear criteria invites inconsistency and could result in unfair treatment," he said. Low, who is also chairs MCA's Economic and SME Affairs Committee, added that the confusion was compounded by a letter issued by Petronas, dated April 30, which prohibited the supply of subsidised LPG to commercial premises. "Why hasn't KPDN instructed Petronas to retract this letter? It is the root cause of the uncertainty and pressure being felt by small business owners," he said. The government had launched Op Gasak on May 1 to clamp down on the misuse of susidised LPG cylinders. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali had said household and small businesses could use fewer than three 14kg LPG cylinders at a time without obtaining a scheduled controlled goods permit. Yesterday, Armizan said the exemption for small businesses would remain in effect until amendments to the Control of Supplies (Amendment) Regulations 2021 were finalised.
