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Borneo Post
9 hours ago
- Business
- Borneo Post
Private doctors urge SST exemption on foreign workers' primary healthcare
Dr Shanmuganathan said that as an alternative, the government could implement a temporary moratorium on the tax to allow time to explore a fair and sustainable healthcare financing mechanism. – Photo by Rodnae Productions/Pexels KUCHING (June 28): The Federation of Private Medical Practitioners' Associations, Malaysia (FPMPAM) has proposed for the government to fully exempt primary care services for foreign workers from the Sales and Services Tax (SST). FPMPAM president Dr Shanmuganathan Ganeson said that as an alternative, the government could implement a temporary moratorium on the tax to allow time to explore a fair and sustainable healthcare financing mechanism. 'We have formally submitted an appeal to the Ministry of Finance (MoF), urging an urgent exemption from the upcoming six per cent SST on primary healthcare services provided to foreign workers, scheduled to take effect on July 1,' he said in a statement yesterday. Dr Shanmuganathan said although the Foreign Workers Medical Examination Monitoring Agency (Fomena) screenings remained exempt, many foreign workers would still require outpatient care for common illnesses, injuries, and chronic conditions — essential services typically paid for out-of-pocket by the workers themselves, or arranged through employer or Third-Party Administrator (TPA) programmes. Under the new SST rules, such services would be taxed once a clinic's annual revenue exceeds RM1.5 million. Dr Shanmuganathan said: 'The foreign workers are already vulnerable and underserved, and the SST to basic medical treatment risks deterring them from seeking timely care, delaying diagnosis, and ultimately compromising public health. 'We are also concerned about the eight per cent SST on commercial property rentals, which would further escalate operating costs for clinics renting shoplots, medical suites, or office units. 'These taxes compound the strain on solo and small-group practices that have seen no fee adjustments for decades.' Dr Shanmuganathan also highlighted that the Federation of Malaysian Manufacturing (FMM) recently called for a broader reassessment of the SST expansion, citing its potential to harm the business environment and consumers. 'FPMPAM echoes this concern, urging the MoF to prioritise public health and service sustainability. 'FPMPAM also notes a policy anomaly where beauticians and cosmeticians, which are not related to essential health, now have no tax, whilst tax is imposed for essential health and medical services.' Nonetheless, Dr Shanmuganathan said the federation stood ready to work with the MoF to ensure that tax policies would not inadvertently undermine access to essential healthcare or threaten the survival of community clinics.
![[UPDATED] MACC to seek court order to forfeit Menara Ilham](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2FMENARA_ILHAM_DISITA_1750825030.jpg&w=3840&q=100)
![[UPDATED] MACC to seek court order to forfeit Menara Ilham](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
4 days ago
- Business
- New Straits Times
[UPDATED] MACC to seek court order to forfeit Menara Ilham
PUTRAJAYA: Graftbusters will apply for the forfeiture of Menara Ilham, a building owned by the family of former finance minister Tun Daim Zainuddin, today. Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki said the application would be filed at the Kuala Lumpur High Court. It was previously reported that the MACC had received authorisation from the deputy public prosecutor to seize the building on Jalan Binjai for a second time. This seizure prohibits all dealings involving the transfer of ownership of the property. Azam then said the forfeiture would be carried out under Section 55 or Section 56 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act. Section 55 allows for the forfeiture of property following a conviction, while Section 56 provides for civil forfeiture without the need for prosecution or conviction. Ilham Tower, located in downtown Kuala Lumpur near the Petronas Twin Towers, houses a four-star hotel, office spaces, a gallery, and other facilities. In December 2023, the MACC invoked its powers to take control of the 274-metre-tall skyscraper, estimated to be worth between RM1.5 billion and RM2 billion.
The Sun
6 days ago
- Business
- The Sun
CAAM to become statutory body, absorb Mavcom effective Aug 1
PUTRAJAYA: The Civil Aviation Authority of Malaysia (CAAM) will transition into an independent statutory body effective Aug 1, with separate remuneration and exemption from the government. Transport Minister Anthony Loke Siew Fook said the government has strengthened the regulatory structure and development of the national aviation industry by transitioning CAAM into a Statutory Body with Separated and Exempted Remuneration (BBDSB), and by rationalising CAAM and the Malaysian Aviation Commission (Mavcom). He said this change will save the government between RM150 million and RM200 million annually and between RM1.5 billion and RM2 billion over the next 10 years. With this rationalisation, CAAM will take over the economic regulatory functions previously carried out by Mavcom, making CAAM the sole regulatory body for the aviation industry, encompassing technical, safety, and economic aspects. Loke noted that this decision by the government will grant CAAM autonomy and flexibility in financial governance, human resource management and the ability to make strategic decisions. Additionally, CAAM will have the capacity to plan and implement more efficient resource management strategies in line with international best practices. 'The estimated revenue for CAAM this year is about RM420 million. Previously, our annual revenue was only in the region of RM100 million to RM110 million. 'Given these figures, it is clear that CAAM could not survive on its own. That is why, until now, it has required an annual injection of at least RM150 million to RM200 million from the government to keep its operations running – and that is before accounting for the maintenance of our air traffic control towers, other facilities, or any development projects. 'Now, our estimated revenue for this year stands at RM400 million. We have already collected about RM150 million in just the first five months, exceeding the total revenue for the entire previous year. 'This strong performance has given us the confidence that CAAM will become financially independent and sustainable. This financial sustainability is also one of the critical conditions set by the Cabinet and the Public Service Department for granting CAAM its status as a BBDSD,' he told reporters in a briefing today. Loke said this initiative is part of the government's current reform agenda and policy direction to improve service delivery efficiency and to centralise government institutions with overlapping roles. Through this rationalisation, it establishes a solid foundation for CAAM to drive the growth of the aviation industry towards a progressive and sustainable future, supporting Malaysia's goal to become a regional aviation hub. This capability is also crucial for CAAM's efforts to retain and attract highly skilled talent in technical fields, especially qualified technical personnel who are critical in ensuring the safety and security of the national aviation industry. Loke said this sector requires a workforce that is not only qualified but also highly skilled and experienced, in compliance with the requirements of the International Civil Aviation Organization. 'With this significant increase in revenue, CAAM will achieve financial independence and gain the capacity to offer more competitive remuneration, particularly for our technical personnel. This is a critical step forward, as our inability to compensate our qualified technical staff at market rates was a key factor in CAAM's previous downgrade from Category 1 to Category 2 by the US Federal Aviation Administration,' Loke said. The audit findings at that time made it clear that competitive salaries are essential for talent retention, he disclosed. 'Now, with improved financial standing, we are in a much stronger position to attract and retain top-tier technical talent. Our objective is not only to secure the best-qualified technical personnel but also to invest in the development of our air traffic controllers, enhancing their skills and operational efficiency. 'This approach aligns with our commitment to building a robust and sustainable workforce for the future of Malaysia's aviation industry,' the minister said. Loke assured all Mavcom employees that they will have the opportunity to transition into roles within CAAM following the merger. He emphasised that the restructuring process will be managed systematically and with complete transparency, in line with established governance principles. Additionally, a business continuity plan has been developed and will be shared with impacted staff through dedicated internal briefings. Currently, Mavcom employs 57 personnel, all of whom will be considered for positions at CAAM as part of the merger process.
New Straits Times
6 days ago
- Business
- New Straits Times
CAAM fully takes over Mavcom functions from August 1
PUTRAJAYA: The Civil Aviation Authority of Malaysia (CAAM) will take over the economic regulatory functions of the Malaysian Aviation Commission (MAVCOM) starting Aug 1. This follows the merger of the two entities, under which CAAM will transition into a Statutory Body with Separated Terms and Freedoms (BBDSB), making it the sole aviation regulatory authority overseeing the technical, safety, and economic aspects of the industry. Transport Minister Anthony Loke said the merger is expected to save the government between RM1.5 billion and RM2 billion over the next decade.
The Sun
6 days ago
- Business
- The Sun
Tax Matters – How should businesses prepare for Sales and Service Tax expansion?
ALL businesses will be affected directly or indirectly by the significant expansion of the Sales and Service Tax (SST) regime which will become effective from July 1. This will flow through to the businesses either through the removal of about 3,400 items from the sales tax exemption list to the 5% and 10% categories, and through the introduction of six new taxable services. Unless the businesses are the final consumers of these goods and services, theoretically the role of the businesses would be to act as tax collectors for the government. In practice, inevitably some portion of the tax collected will be borne by the businesses as they will not be able to pass on the cost. Since services such as construction, finance and rental are integral to almost every industry sector, the tax increase in these areas will percolate or spread throughout the business ecosystem. What are the steps businesses should now undertake? Before July 1, businesses should review their supply chain and look at the impact of the SST changes on all the inputs and outputs of the business. This step will immediately give you an idea of the increased cost to doing business which will then lead you to determine whether you can increase and pass on the cost to customers. At this stage, you will be looking at reducing the cost through substitution with products and services that are not affected by the changes, or reduce the consumption of the taxable products and services. The next step to keep your costs at the same level would be to identify all the possible exemptions and deductions in the sales tax regime and similarly identify the exclusions and exemptions for service tax regime. Here, the focus should be to take advantage of the business-to-business exemption for services, and to benefit from the exemptions available for goods. In the bigger picture when you are looking at managing the overall cost to the business, you should take into account exclusions, deductions and group reliefs. For businesses that are not registered, you need to quickly assess whether the thresholds stated for the different services will be exceeded within the next 12 months to be calculated from July 1. The thresholds vary for different services from nil to RM500,000 and to RM1.5 million. Similarly, for sales tax purposes, new registrants should qualify as a manufacturer and exceed the sales threshold of RM500,000 for the next 12 months. Broadly speaking, manufacturing involves the transformation of materials or products from one state to another. Businesses should carefully assess whether their activities fall within the definition of 'manufacturing' under the Sales Tax Act. Importation of goods and services will attract imported sales tax and imported service tax. This is often ignored by the taxpayers largely because they are not registered for SST. A frequently used imported service could be financial services provided in the course of arranging financing for Malaysian companies. Another example would be leasing of assets by a foreign company to a Malaysian entity. Businesses should also review their contracts spanning July 1 to determine whether they are non-reviewable, in which case, they will be eligible for a 12 months' exemption from charging service tax. You need to identify SME lessees whose turnover will be less than RM500,000 and therefore exempted from paying service tax on their rental. This can be done by checking the portal that will be available next week where such SMEs will need to register. Businesses should ensure they do not breach the Price Control and Anti-Profiteering Act. For example, if you have leftover stock which has not been subjected to sales tax, you cannot increase your prices to reflect the increase that will be triggered from July 1. The final advice is that if you are unclear on the definitions or any issues surrounding your transactions, it will be best to seek the views of the Royal Malaysian Customs Department in writing to avoid future disputes with them. This should be done before July 1 or as soon as possible.
