Latest news with #PwCMalaysia
The Star
6 days ago
- Business
- The Star
The rise of e-wallets in Asean
E-WALLETS have been around for more than 25 years, ever since Coca-Cola introduced its SMS-based vending machine payments in 1997 and emergence of PayPal in 1998. In Malaysia, cash was king, until the unthinkable happened—a pandemic that stopped the world in its tracks for two years. Within that timeframe, Covid-19 caused not only a major shift in how people lived but their attitudes as well. According to a survey done by PwC Malaysia in September 2021, during the Covid-19 pandemic lockdown, it charted that the average transactional frequency done on e-wallets almost doubled as compared to May 2018, with weekly transaction values increasing more than three-fold. In fact, the Visa Consumer Payment Attitudes Study 2024 showed a surge in e-wallet adoption across the region in 4Q2023, with 79% of respondents reporting they use this payment method, outpacing cash (77%), debit and credit cards (70%) and Internet banking (70%). Furthermore, the region's digital economy made good progress last year. The 2024 e-Conomy SEA report showed a 15% increase year-on-year (YoY) of US$263bil for gross merchandise value, a revenue of US$89bil—a 14% increase YoY, and profits of up to US$11bil—a 24% increase year YoY. However, even with such glowing reports, there is still the disconnect between the high digital transactions and still trails behind the more developed international countries when it comes to providing basic financial services. An article in Asian Banking & Finance stated that in countries, such as the Philippines, Vietnam and Indonesia, more than half of their population were still unbanked or underbanked. Even so, a Bain & Co report remained positive that those who are underbanked are the target market. Although they do not have full access to traditional financial services, their predilection for technology, as shown with the high smartphone penetration within the region, could be the answer. Technology enabled business models would most likely bethe best way to serve this segment, which creates new market opportunities. The report stated that this segment is the biggest potential and the true growth engine in digital financial services. Consumer tech platforms are ideally positioned to capture a larger share of the underbanked segment due to their extensive, growing, and engaged customer base. These platforms can enhance customer lifetime value by offering a more comprehensive range of consumer services. But the potential of these transactions need not be confined within the countries they operate in. Thanks to the Regional Payment Connectivity (RCP), which was initiated by the central banks of Indonesia, Malaysia, Philippines, Singapore and Thailand in 2022, cross-border transactions allow payments to be made in local currencies. It also cuts down the costs and time of performing that transaction in the conventional way. This solves the long-standing problem of having to rely on multiple banking intermediaries and the use of the US dollar. It also makes the transaction more affordable as it skips intermediary fees and long processing times to clear the payments. It also bypasses the regulatory differences that would have hampered the development of a unified payment system and the limited interoperability between different banking systems. According to a Juniper Research report, such connections allow e-wallet transactions for cross-border payments, with tourism and remittances being the major consumer drivers. From a business standpoint, the benefits of instant payments are less apparent. The report noted that challenges still persist, which include fluctuating exchange rates and regulatory discrepancies between jurisdictions. In a blog post, ASEAN+3 Macroeconomic Research Office mentioned the rising importance of using Quick Response (QR) payments. Popular during the pandemic, this form of payment gained widespread appeal, even over the near field communication (NFC) system and has integrated into the systems of participating central banks to standardise national payment systems. Asean countries that have embedded this form including Cambodia's KHQR, Indonesia's QRIS, Lao PDR's Lao QR, Malaysia's DuitNow, the Philippines's QR Ph, Singapore's PayNow, Thailand's PromptPay and Vietnam's VietQR. Even Japan is reported to consider integrating its QR payment system into RPC, with full implementation by the end of 2025. Locally, Bank Negara Malaysia (BNM) launched the Interoperable Credit Transfer Framework in 2019, which allows significant progress in the nation's efforts to migrate to e-payments and reduce the usage of cash. The framework establishes a shared payment infrastructure that connects bank and non-bank accounts while managing the resultant risks. As Tan Sri Dr Zeti Aziz said in her keynote address during the Eminent Persons' Dialogue, entitled Asean Financial Integration in a Multipolar World on Apr 9, more than 20 years ago, the pivotal decision was made for Asean economies to come together and pursue regional financial integration. She said the drive for enhanced regional financial integration was aimed at enabling the efficient channeling of funds within the region for reinvestment. It was anticipated that this would lead to more stable financial flows, helping to counteract destabilising financial movements. 'Being high savings economies, it would also facilitate some part of our domestic savings to be reinvested in the region. Additionally, it would also support the development of domestic financial markets, enhance the overall resilience of regional financial systems and contribute towards the financing of growth and development in the region,' she said. The Asean region may not be ready for a single unified currency like the European Union, but the economic interdependence between each state can be realised with the cross-border transactions afforded by linked e-payment systems.
The Sun
26-06-2025
- Business
- The Sun
PwC Malaysia's TRX entry boosts KL as global financial hub
KUALA LUMPUR: PricewaterhouseCoopers Malaysia Holdings Sdn Bhd (PwC Malaysia) will anchor a new 39-storey office building in Tun Razak Exchange (TRX), reinforcing Kuala Lumpur's position as a leading global business hub. Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted the move as a milestone for TRX's growth as an International Financial Centre. Speaking at the groundbreaking ceremony, Amir Hamzah emphasised that PwC's presence will generate high-quality jobs and enhance regional connectivity across ASEAN. The project, set for completion in Q2 2029, marks TRX's 10th office development. 'Today's groundbreaking ceremony is more than just a success for TRX, it is a win for Kuala Lumpur,' he said, underscoring the government's commitment to boosting Malaysia's economic competitiveness under the MADANI Economic Framework. TRX has already attracted over RM8 billion in investments, housing 20,000 knowledge workers and global giants like HSBC, Prudential, and Apple. Amir Hamzah noted that TRX's clustering of industry leaders offers unmatched opportunities in ASEAN and Asia. Prime Minister Datuk Seri Anwar Ibrahim officially launched TRX as Malaysia's International Financial Centre in February 2024. The initiative aligns with national efforts to position Malaysia as a top global business destination.
New Straits Times
26-06-2025
- Business
- New Straits Times
PWC moves into TRX, advancing Kuala Lumpur's status as financial hub: Amir Hamzah
KUALA LUMPUR: The entry of PricewaterhouseCoopers Malaysia Holdings Sdn Bhd (PwC Malaysia) into Tun Razak Exchange (TRX) as an anchor tenant marks another step forward in positioning Kuala Lumpur as a premier destination for global businesses and in strengthening its International Financial Centre (IFC) ecosystem. Finance Minister II Datuk Seri Amir Hamzah Azizan said PwC's presence in the district is expected to create high-quality job opportunities and enhance regional integration across ASEAN and beyond. "Today's groundbreaking ceremony is more than just a success for TRX, it is a win for Kuala Lumpur. "Realising Kuala Lumpur's full potential as a competitive international financial centre demands fullalignment and coordinated execution across all arms of government, so that we continue to strengthen KL's centrality and competitiveness," he said during the groundbreaking ceremony for the New TRX Development today. His speech was delivered by Finance Ministry Deputy Secretary-General (Investment) Datuk Shahrazat Ahmad.
Malay Mail
10-06-2025
- Business
- Malay Mail
Tax experts say expanded SST key step towards strengthening Malaysia's finances
KUALA LUMPUR, June 10 — The revision of Sales Tax rates and the expansion of the Service Tax scope form part of targeted fiscal measures to keep the nation's finances on a sustainable path, tax experts said. PwC Malaysia tax leader, Steve Chia, said the review of the Sales and Service Tax (SST) was expected, having been announced in Budget 2025 last October. He urged the public to view the changes in a broader fiscal context. 'Whilst it is aimed at supporting the medium-term fiscal goals, a search for a longer-term solution remains necessary to ensure a sustainable revenue contribution for the country. 'Although the current expansion is relatively broader, the government is committed to containing the scope to selected and non-essential goods and business-to-business (B2B) services to ensure that the rakyat will not be burdened,' he told Bernama. Finance Ministry II Minister, Datuk Seri Amir Hamzah Azizan, earlier announced that the government would implement the revised Sales Tax rates and expanded Service Tax scope from July 1, 2025, to strengthen the country's fiscal position and improve support for public welfare. Chia noted that a key challenge would be ensuring cascading costs are either eliminated or not passed along the value chain. 'Since the Budget 2025 announcement until now, the government has made efforts to engage with relevant stakeholders, including industry associations and tax professionals, to ensure that the revisions are well-informed and the industry impact and issues are taken into consideration. 'Therefore, the change is aimed at strengthening Malaysia's fiscal position by increasing revenue and broadening the tax base. 'We can see that the government is careful in identifying areas for rate increases and scope expansion to protect and cushion the impact on the rakyat at large,' he added. Meanwhile, KPMG Malaysia head of tax, Soh Lian Seng, noted that the current SST framework is often viewed as less comprehensive than the previous Goods and Services Tax (GST) system and is sometimes criticised for being regressive. 'This revision appears to be an effort to make the tax structure more progressive, broadening the base while ensuring that the burden does not disproportionately fall on the rakyat. 'Expanding the scope of taxable services and revising rates can help improve revenue collection, which is essential for Malaysia's medium-term fiscal consolidation,' he said. Soh emphasised that the government is likely aiming to enhance fairness and efficiency in tax collection by refining the scope and structure of the SST following the review announcement. In the meantime, Soh noted that there may be a short-term spike in consumer spending as people rush to make purchases before the new rates take effect, similar to what was observed in 2015 ahead of GST implementation. 'However, this is likely to normalise within the next few months. In regard to concerns about inflation, the impact should be modest. 'While there are exemptions and reliefs in place to cushion the impact, the net effect should still contribute positively to government coffers, supporting broader fiscal sustainability,' he added. — Bernama
Free Malaysia Today
09-06-2025
- Business
- Free Malaysia Today
View revised SST in broader fiscal context, tax expert tells M'sians
Basic necessities will continue to be exempted from sales tax, but a 5-10% rate will be imposed on non-essential items. KUALA LUMPUR : The revision of sales tax rates and the expansion of the service tax scope form part of targeted fiscal measures to keep the nation's finances on a sustainable path, say tax experts. PwC Malaysia tax leader Steve Chia said the review of the sales and service tax (SST) was expected, having been announced in the 2025 budget last October, and urged the public to view it in a broader fiscal context. 'While it is aimed at supporting the medium-term fiscal goals, a search for a longer-term solution remains necessary to ensure sustainable revenue contributions for the country. 'Although the current expansion is relatively broader, the government is committed to containing the scope to selected and non-essential goods and business-to-business (B2B) services to ensure the rakyat will not be burdened,' he told Bernama. Finance minister II Amir Hamzah Azizan had announced that the government would implement the revised SST from July 1 to strengthen the country's fiscal position and improve support for public welfare. Chia said a key challenge would be ensuring cascading costs are either eliminated or not passed along the value chain. 'Since the budget was announced, the government has made efforts to engage the relevant stakeholders, including industry associations and tax professionals, to ensure the revisions are well-informed and the impact on industries are taken into consideration. 'Therefore, the change is aimed at strengthening Malaysia's fiscal position by increasing revenue and broadening the tax base. 'We can see that the government is careful in identifying areas for rate increases and scope expansion to protect and cushion the impact on the rakyat at large.' KPMG Malaysia's head of tax Soh Lian Seng however said the current SST framework is often viewed as less comprehensive than the previous goods and services tax (GST) scheme. 'This revision appears to be an effort to make the tax structure more progressive, broadening the base while ensuring the burden does not disproportionately fall on the rakyat. 'Expanding the scope of taxable services and revising rates can help improve revenue collection, which is essential for Malaysia's medium-term fiscal consolidation,' he said. Soh said the government is likely aiming to enhance fairness and efficiency in tax collection by refining the scope and structure of the SST. Soh said there may be a short-term spike in consumer spending as people rush to make purchases before the new rates take effect, similar to what was observed in 2015 ahead of the GST's implementation. 'However, this is likely to normalise within the next few months. In regard to concerns about inflation, the impact should be modest. 'While there are exemptions and reliefs in place to cushion the impact, the net effect should still contribute positively to government coffers, supporting broader fiscal sustainability,' he added.
