Latest news with #LiquidatedAscertainedDamages
New Straits Times
3 days ago
- Business
- New Straits Times
No move to raise SST threshold for construction sector
KUALA LUMPUR: The government has no plans to raise the Sales and Service Tax (SST) registration threshold for taxable construction services from RM1.5 million to RM3 million, said Deputy Works Minister Datuk Seri Ahmad Maslan. During the Minister's Question Time in the Dewan Rakyat, he said the Works Ministry had not submitted any request to the Finance Ministry to review the threshold, despite requests from the industry. "As of now, there have been no discussions to raise the RM1.5 million threshold. It remains unchanged, and we have no plans to increase it to RM3 million. "This matter falls under the purview of the Finance Ministry. However, we understand the need to consider a revision if necessary. But so far, there has been no request to do so," he said. Ahmad was responding to a question from Abdul Latiff Abdul Rahman (PN–Kuala Krai) on whether the government was prepared to consider the industry's proposal to raise the SST threshold for taxable services, particularly in the construction, rental, and leasing sectors. Currently, construction services are subject to a six per cent service tax. The scope includes all works related to infrastructure, commercial buildings, and industrial facilities. The tax applies when the total value of taxable services reaches RM1.5 million within 12 months, a threshold designed to ease the compliance burden on small and medium-sized contractors. Meanwhile, Ahmad Maslan said the government does not tolerate delays in project delivery. He said companies that fail to complete projects even after two or three approved extensions of time (EOT) would be subjected to Liquidated Ascertained Damages (LAD) fines, calculated based on the number of days delayed. "Delays can cost contractors tens of thousands of ringgit per day. This becomes a serious obstacle. If companies are repeatedly fined for delays, they will not be awarded government projects in the future," he said. He was responding to a supplementary question on how the government handles delayed projects where contractors seek additional costs and EOTs, including the case of the Sungai Durian project, which has already been granted three extensions.
The Star
22-07-2025
- Business
- The Star
National Audit Department recovers over RM157mil in one year
KUALA LUMPUR: A total of RM157.73mil has been recovered by the National Audit Department through audits done between 2024 and June this year, says Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. She said the amount was collected through penalty claims, outstanding rent, the collection of Liquidated Ascertained Damages (LAD), overdue land leases, and the collection of duties and taxes. 'The amendments on the Audit Act 1957 (Act 62) also empowers the Auditor-General to audit other bodies, including registered companies that receive financial guarantees from the government. '(This is) to track public funds through the new approach of 'Follow The Public Money Audit', issue any guidelines if necessary and provide any recommendations in addressing serious misconduct to prevent the misuse of public funds,' she said in a statement yesterday. She has also revealed that a total of 1,856 gazetted government companies have been audited through the eSelfAudit system. Wan Suraya said five audits have been conducted involving seven ministries, with the total costs of audited programmes and projects reaching RM48.873bil. 'The scope of the audit encompasses programmes, activities or projects that were implemented within the 11th and 12th Malaysia Plan.' The audits, she said, had found irregularities involving several agencies such as Felcra, Universiti Kebangsaan Malaysia and the army. For Felcra, it was revealed that there were weaknesses in governance in the procurement implementation of leasing one oil palm plantation in Sandakan, Sabah, and three oil palm plantations in Gua Musang, Kelantan, which involved procurements totaling RM241.76mil in the period from 2022 to 2024. Meanwhile, the audits on the procurement and services at UKM found irregularities in tender and procurement processes involving RM58.45mil. 'This happened when the tender procurement committee had chosen companies that were not recommended by the technical evaluation committee, financial evaluation committee and pre-tender committee,' said Wan Suraya. She said there were also weaknesses in the contract administration and procurement management under the armed vehicles management by the army, which saw a total of RM162.75mil failed to be collected. Fines on the company causing the delay in maintenance, repair and supply of spare parts, were worth RM1.42mil. 'In addition, it was found that the procurement of maintenance services, repairs and the supply of spare parts for armored vehicles totaling RM107.54mil was carried out in small fragmented parts,' said Wan Suraya.
The Star
21-07-2025
- Business
- The Star
National Audit Dept recovers over RM150mil from 2024 to June
KUALA LUMPUR: A total of RM157.73mil has been recovered by the National Audit Department through audits done between 2024 and June this year, says Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. She said that the amount was collected through penalty claims, outstanding rent, the collection of Liquidated Ascertained Damages (LAD), overdue land leases, and the collection of duties and taxes. 'The amendments on the Audit Act 1957 (Act 62) also empower the Auditor-General to audit other bodies, including registered companies that receive financial guarantees from the government. '(This is) to track public funds through the new approach of 'Follow The Public Money Audit', issue any guidelines if necessary and provide any recommendations in addressing serious misconduct to prevent the misuse of public funds,' she said in a statement on Monday (July 21). She has also revealed that a total of 1,856 gazetted government companies have been audited through the eSelfAudit system. Wan Suraya also said that five audits have been conducted involving seven ministries, with the total costs of audited programmes and projects reaching RM48.873bil. 'The scope of the audit encompasses programmes, activities or projects that were implemented within the 11th and 12th Malaysia Plan,' she said. The audits, she said, had found irregularities involving several agencies such as Felcra, Universiti Kebangsaan Malaysia and Armed Forces. For Felcra, it was revealed that there were weaknesses in governance in the procurement implementation of leasing one palm oil plantation in Sandakan, Sabah, and three palm oil plantations in Gua Musang, Kelantan involved procurements totalling RM241.76mil in the period from 2022 to 2024. Meanwhile, the audits on the procurement and services at UKM found irregularities in tender and procurement processes involving RM58.45mil. 'This happened when the tender procurement committee had chosen companies that were not recommended by the technical evaluation committee, financial evaluation committee and pre-tender committee,' said Wan Suraya. She added that there were also weaknesses in the contract administration and procurement management under the armed vehicles management by the Armed Forces, which saw a total of RM162.75mil fail to be collected. Fines on the company causing the delay in maintenance, repair and supply of spare parts, worth RM1.42mil. 'In addition, it was found that the procurement of maintenance services, repairs, and the supply of spare parts for armoured vehicles totalling RM107.54 million was carried out in small fragmented parts,' said Wan Suraya.
New Straits Times
27-05-2025
- Business
- New Straits Times
Sarawak's ART project on track with no cost overruns despite minor delays
KUALA LUMPUR: Sarawak's Autonomous Rapid Transit (ART) hydrogen tram project remains financially on course with no cost overruns reported, despite experiencing a slight delay of about 3.97 per cent, according to State Transport Minister Datuk Sri Lee Kim Shin. Responding to a query from Chong Chieng Jen (DAP–Padungan) during the Sarawak State Legislative Assembly, Lee clarified that while there had been minor setbacks in the project timeline, these delays have not led to additional expenses for the state government. "The minor delay has not caused any cost overrun up to this stage," he said. Minister Lee addressed concerns in the Sarawak Legislative Assembly, stating that any delays caused by contractors are subject to standard contract management practices, including the submission and execution of mitigation plans. Lee added that contractors are liable for Liquidated Ascertained Damages (LAD) in cases of delay and that they are required to submit and implement mitigation plans if delays arise to ensure project continuity and minimise disruption. The ART project, part of Sarawak's initiative to modernise its public transportation network, spans a 52-kilometre route through Kuching and is powered by hydrogen fuel cell technology. The project spanning Kuching, Samarahan, and Serian is reportedly expected to cost RM6 billion and may take approximately six to seven years to complete. The state government chose the ART system as a sustainable and innovative solution to its urban transit challenges. The first phase includes the Red Line, while the Green Line package has yet to be awarded, and the Yellow Line is planned for a subsequent phase. The ART system will feature driverless tram-like vehicles powered by hydrogen fuel cells, operating on dedicated trackless lanes. Each vehicle is designed to carry up to 300 passengers at speeds of up to 70 km/h. The first phase is expected to be completed by the end of 2025, with operations commencing in 2026. As for the cost details of awarded packages, Lee said this information would be furnished in writing to Chong, who had submitted a formal request for a written reply. Lee reaffirmed the government's commitment to delivering the project efficiently and transparently, positioning Sarawak as a regional leader in green, future-forward public transport.
