Latest news with #RM13bil
The Star
5 days ago
- Business
- The Star
‘Losses will impact rakyat'
THE nation's fiscal stability will be jeopardised if the proposed expansion of the Sales and Service Tax (SST) is deferred, said Datuk Seri Anwar Ibrahim. The Prime Minister said such a move would result in the government missing its revenue target and impacting its ability to discharge its responsibilities towards the rakyat. 'The revision of the sales tax rate and the expansion of the SST scope, which took effect on July 1, is expected to generate additional revenue of RM5bil over the six months of 2025 and RM10bil in 2026,' he said in a written parliamentary reply to a question raised by Lim Guan Eng (PN-Bagan) in Dewan Rakyat. Lim asked whether the SST expansion could be deferred in light of the United States tariffs and the current economic slowdown. Anwar, who is also Finance Minister, reaffirmed the government's commitment to strengthen the nation's fiscal position through tax reforms. He said this was crucial in ensuring sustainable revenue to support development and social programmes, despite growing public concern over the rising cost of living. He also added that several measures are in place to cushion the impact of SST on people and businesses. Among them was the RM13bil allocation for STR/SARA (Sumbangan Tunai Rahmah/Sumbangan Asas Rahmah) cash aid programmes, up from RM10bil compared to 2024. Also increased was the allocation for the Education Ministry from RM59bil last year to RM64bil in 2025, while the allocation for the Health Ministry was also increased from RM41bil to RM45bil, which would help in the hiring of contract doctors. He also said that service tax exemptions will be granted to tenants classified as small and medium enterprises (MSMEs) with annual sales of less than RM1mil. For construction service providers, he said the threshold for service tax compliance has been increased from RM500,000 to RM1.5mil over 12 months to ease the compliance burden on smaller contractors. This same threshold applies to small-scale private healthcare clinics to protect them from undue tax pressures. On the breakdown of the additional tax revenue, particularly those borne by locals and foreigners as requested by Lim, Anwar said this cannot be done as it is impossible to accurately determine the breakdown because the national revenue collection system does not categorise contributions based on the taxpayer's citizenship.
The Star
5 days ago
- Business
- The Star
Malaysia's fiscal stability will be jeopardised if SST expansion deferred, says PM
KUALA LUMPUR: The nation's fiscal stability would be jeopardised if the proposed expansion of the Sales and Service Tax (SST) were deferred, said Datuk Seri Anwar Ibrahim. The Prime Minister stated that such a move would result in the government missing its revenue target and impact its ability to fulfil its responsibilities towards the rakyat. "The revision of the sales tax rate and the expansion of the SST scope, which took effect on July 1, is expected to generate additional revenue of RM5bil over the six months of this year 2025 and RM10bil in 2026," he said in a written parliamentary reply to a question raised by Lim Guan Eng (PN-Bagan) in Dewan Rakyat on Thursday (July 24). Lim had asked whether the SST expansion could be deferred in light of the United States tariffs and the current economic slowdown. Anwar, who is also the Finance Minister, reaffirmed the government's commitment to strengthening the nation's fiscal position through tax reforms. He emphasised that this was crucial in ensuring sustainable revenue to support development and social programs, despite growing public concern over the rising cost of living. He noted several measures implemented to cushion the impact of the SST on the rakyat and businesses. Among them, he cited the RM13bil allocation for STR/SARA cash aid programs, up from RM10bil compared to 2024. He also mentioned the increased allocation for the Education Ministry, from RM59bil last year to RM64bil in 2025. He added that the allocation for the Health Ministry was increased from RM41bil to RM45bil, which would aid in hiring contract doctors. Service tax exemptions will be granted to tenants classified as small and medium enterprises (MSMEs) with annual sales of less than RM1mil. For construction service providers, the threshold for service tax compliance has been increased from RM500,000 to RM1.5mil over 12 months, to ease the compliance burden on smaller contractors. This same threshold applies to small-scale private healthcare clinics to protect them from undue tax pressure. Regarding the breakdown of the additional tax revenue, particularly those borne by locals and foreigners as requested by Lim, Anwar said this was not possible. He explained that it was not feasible to accurately determine such a breakdown because the national revenue collection system does not categorise contributions based on the taxpayer's citizenship.
The Star
7 days ago
- Business
- The Star
Govt taking steps to keep food price hikes in check after SST expansion, Dewan Rakyat told
KUALA LUMPUR: The government is taking heightened measures to control living costs given the higher food inflation rate, says Deputy Finance Minister Lim Hui Ying. She said the average food inflation rate is at 2.1%, higher than the overall inflation rate which was at 1.1% as of June. 'We expected... an increase in the cost of food or cost of living owing to the expansion of sales and service tax (SST). 'The government, through the Domestic Trade and Cost of Living Ministry, will continuously monitor food prices to ensure (they) are controlled, especially essential items,' she said during Question Time in the Dewan Rakyat on Wednesday (July 23). Datuk Seri Hamzah Zainudin (PN-Larut) had asked the ministry to explain the measures taken to control food prices that did not reflect the inflation rate. Lim explained that while the food inflation rate is at 2.1%, some places in the country might have higher rates because of other factors. Earlier, she also said the government has outlined several assistance and subsidy programmes to reduce the burden on the people. She said this included higher Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, which had increased from RM10bil to RM13bil, benefitting nine million Malaysians. 'The allocation for assistance under the Social Welfare Department for this year has also increased to RM2.9bil from RM2.4bil. 'The government has also allocated RM1bil to more broadly address the cost of living, including controlling the prices of basic commodities such as rice and cooking oil. "This includes the Payung Rahmah Programme, for which RM300mil has been allocated this year," she added. Follow us on our official WhatsApp channel for breaking news alerts and key updates!
The Star
18-06-2025
- Business
- The Star
Johor offers ideal ecosystem for AI and green investments, says exco
ISKANDAR PUTERI: Johor offers a fully integrated ecosystem with high-performance tech infrastructure, renewable energy solutions, and regulatory clarity, making it an ideal destination for investments in AI, green data centres, fintech, and more. Johor investment, trade, consumer affairs, and human resources committee chairman Lee Ting Han stated that Medini, is a smart city that has attracted over RM13bil in cumulative investments, including healthcare, education, business services, and smart infrastructure. It is currently hosting the inaugural two-day Nikkei Forum Medini Johor 'Subnational regions like Johor are more important than ever. 'We are not just passive beneficiaries of policies; we are active participants in driving the growth of our countries and regions,' he said during his closing speech on day one of the forum on Wednesday (June 18). He said initiatives like the Johor-Singapore Special Economic Zone (JS-SEZ) illustrate how targeted policies can unlock cross-border synergies in trade, talent, and technology, creating a seamless ecosystem for high-value industries. By focusing on execution, infrastructure readiness, and investor confidence, Johor demonstrates that growth can be decentralised and that real transformation often happens where industries operate and people live. Lee noted that forum speakers discussed the need to deepen regional cooperation, emphasising sustainability and the critical role of technology and innovation, particularly AI and digital platforms. 'One key takeaway is that Asia, with over 4.7 billion people, will remain the world's manufacturing hub and is also emerging as its innovative engine. 'In this era of uncertainty, investors and innovators seek environments where rules are transparent, decisions are predictable, and institutions are stable. Johor is ready to offer these,' he added. The forum is expected to be officiated by Prime Minister Datuk Seri Anwar Ibrahim on Thursday (June 19 and has about 800 participants and delegates attending in person and online for discussions and fireside chats. Themed "Driving Asia's Innovation Hub," the event brings together thought leaders, policymakers, corporate leaders, and investors from across Asia and beyond.
The Star
01-06-2025
- Business
- The Star
Malaysia stands to gain from outing at Osaka expo
Showcasing the best of Malaysia: Fadillah visiting the exhibition area after officiating the opening of the Malaysia Pavilion at Expo 2025 Osaka, which is open until Oct 13 in Yumeshima Island in Osaka Bay. — Bernama OSAKA: Malaysia has successfully secured more than RM8bil in potential investments and signed 20 memoranda of understanding (MOUs) by participating at Expo 2025 Osaka, says Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also Energy Transition and Water Transformation Minister, and chairman of Malaysia's National Organising Committee for Expo 2025, said this achievement, involving 101 companies, represents 61.54% of the overall RM13bil target that was previously set. 'I am confident that with our coming initiatives over the next four months, we will not only surpass our target but also unlock new opportunities for Malaysians. 'The success of our participation will pave the way for job creation while further strengthening bilateral ties with Japan and other global partners,' he told a press conference after launching the opening ceremony of the Malaysia Pavilion at Expo 2025 Osaka here yesterday. In addition to the digital economy, Fadillah highlighted the green economy, Japanese technologies and global participation in Expo 2025 as key opportunities for Malaysia to explore. He noted that these opportunities position Sarawak not only as a hub for energy, particularly green energy, leveraging its hydropower resources, but also as a central player in Malaysia's Hydrogen Economy Roadmap and Energy Transition Roadmap. Regarding the signing of the 20 MOUs, Fadillah said the Malaysian Pavilion has facilitated several high-impact MOUs and strategic partnerships that reflect the country's forward-looking approach to regional collaboration, sustainable development and technological advancement. 'This agreement has covered a wide range of sectors, including renewable energy, digital, property services, biotechnology, caregiving innovation and infrastructure development. 'The key focus areas have included efforts to support decarbonisation, advance green hydrogen solutions, strengthen dementia care capabilities and promote smart facility systems and sustainable materials,' he said, reported Bernama. Collectively, the partnerships underscored the Malaysia Pavilion's role as a hub for generating tangible economic outcomes, also encouraging cross-border knowledge sharing and reinforcing Malaysia's position as a regional leader in clean technology, inclusive innovation and future-ready industries, said Fadillah. Earlier, in his opening speech, Fadillah said the Malaysia Pavilion at Expo 2025 has surpassed the remarkable milestone of one million guests this week. Fadillah said Malaysia and Japan's longstanding relations and strong ties extended beyond economic relations, encompassing a shared commitment to regional stability and cultural understanding. The Malaysia Pavilion also unveiled its official mascot, 'Lina', a Malaysian girl who embarked on a journey of discovery and balance, guided by her older self through a future-inspired realm. Her evolving batik 'selempang', which transformed into songket, symbolised transformation, identity and hope. 'Lina' is a reflection of the next generation of Malaysians who are thoughtful, empowered and rooted in heritage while embracing global sustainability ideals.
