Latest news with #RM500mil
The Star
an hour ago
- Business
- The Star
Govt scraps plan to impose luxury goods tax
KUALA LUMPUR: The government has decided not to proceed with its implementation of the proposed high-value goods tax (HVGT), says Datuk Seri Anwar Ibrahim. The Prime Minister said, however, the underlying principle has been incorporated into the revised sales tax framework, with luxury and discretionary items now taxed at either 5% or 10%. Anwar further noted that the newly implemented low-value goods (LVG) tax, effective from Jan 1, 2024, has brought in around RM500mil in revenue this year. He said the government's latest review of the sales tax rate and expansion of the service tax scope, which came into effect on July 1, is expected to increase national revenue by RM5bil this year and double to RM10bil in 2026. In a written parliamentary reply on Tuesday (July 29), Anwar, who is also the Finance Minister, said the ongoing diesel subsidy rationalisation has resulted in savings of up to RM600mil a month for the Federal Government. He added that other fiscal reform measures have contributed significantly to strengthening national revenue, including the implementation of the Capital Gains Tax (CGT) on unlisted shares, which took effect on March 1, 2024. 'Based on the current volume and value of transactions involving unlisted shares, the government estimates revenue collection at around RM800mil annually. 'However, actual figures will only be confirmed after corporate taxpayers submit their annual income tax returns,' he said. Anwar clarified that while a digital goods tax (DGT) has not been introduced, a service tax on digital services (StoDS) has been in place since Jan 1, 2020. This tax, levied on digital service providers offering or subscribing services online or through other electronic networks, has generated RM1.6bil in revenue so far in 2024, Anwar added.
The Star
4 days ago
- Business
- The Star
Citadel Trustee, Chester Group announce tie-up on real estate management platform
KUALA LUMPUR: Citadel Trustee Bhd and Chester Group have announced a strategic partnership to introduce a pioneering real estate management platform led by Chester Group. In a joint statement, the partners said the platform was designed to deliver robust growth, capital preservation, and multi-generational wealth planning. "Backed by substantial capital support, the platform uniquely combines diversified asset deployment with sophisticated risk assessment to meet the evolving needs of discerning clients in Malaysia's dynamic property market. "The new product integrates equity stakes in undervalued real estate, development projects, select equities and income-generating assets within an advanced asset protection framework." According to the statement, the platform is designed to deliver stable annual returns of 10% to 12%, with regular quarterly payouts, while safeguarding against legal and financial risks. Tailored legacy planning solutions are also available for high-net-worth participants, ensuring a smooth transfer of wealth across generations. The aim is to grow the portfolio to RM500mil by 2026. 'Through this collaboration, we are pioneering a new chapter in Malaysia's property management landscape. Our platform goes beyond growth — it is designed to safeguard wealth while providing clients with a secure and transparent solution that balances strong performance with long-term stability. "This partnership sets a benchmark aligned with the evolving needs of today's market.' said Syarifah Baizura, CEO/director of Citadel Trustee. Datuk Howard Chew, founder and group executive chairman of Chester Group said: 'By combining our deep market insights with Citadel's expertise in trust management and operation, we're enabling participants to move beyond traditional property ownership. "This platform delivers diversification, risk mitigation, and strategic growth — all within one integrated solution designed to build enduring legacies.'
The Star
5 days ago
- Business
- The Star
Sapura Energy's Thailand unit secures RM500mil in contracts
KUALA LUMPUR: Sapura Energy Bhd 's wholly-owned subsidiary Sapura Energy (Thailand) Ltd has received a work order and service orders with a combined value of RM500mil in Thailand, it said in a stock exchange filing today. The company received the work order from Chevron Thailand Exploration and Production Ltd and Chevron Offshore (Thailand) Ltd, and the service orders from PTT Exploration and Production Public Company Ltd and PTTEP Energy Development Company Ltd. It said the workd order commenced in 3Q25 with completion date scheduled for 4Q26, while the service orders commenced in 2Q25 for a period of five months. "The work order and service orders are expected to contribute positively to the earnings for the financial years ending 31 January 2026 onwards until the expiry of the work order and service orders," said Sapura Energy.
The Star
6 days ago
- Business
- The Star
CGC targets mid-tier companies to provide ease of access to bank loans
KUALA LUMPUR: Mid-tier companies (MTCs) – often overlooked in the financing landscape – are getting a targeted boost through an enhanced credit guarantee scheme by Credit Guarantee Corp Malaysia Bhd (CGC), designed to ease their access to bank loans, especially for growth-stage firms lacking collateral. Launched on Feb 25, the BizJamin/-i MTC scheme is CGC's dedicated programme for MTCs, offering credit guarantees of up to RM20mil per customer with total group exposure limit of up to RM60mil. The scheme supports a wide range of facilities, including term loans, trade lines and revolving credit, with guarantee cover of up to 80% and tenures of up to 15 years. In a recent enhancement to the scheme, CGC provides guarantee for unsecured financing of between RM1mil and RM5mil – a move aimed at further easing access to funding for growth-stage MTCs that may lack sufficient collateral. 'MTCs often operate as the unsung heroes of our economy,' CGC chief business officer Sean Tan said at the CGC mid-tier momentum 2025 forum yesterday. MTCs – defined as entities generating between RM50mil and RM500mil in revenue for manufacturers, and RM20mil to RM500mil for service providers – represented only 0.8% of all registered businesses and they contributed 36% of Malaysia's gross domestic product. 'Many are on the cusp of regional or international expansion, yet they frequently encounter hurdles in scaling up, especially when it comes to accessing adequate financing,' he said. To address this, he said CGC launched the BizJamin/-i MTC scheme which is backed by 28 financial institutions. 'This is about enabling access, particularly for those in the 'missing middle' –companies too large for typical small and medium enterprise schemes but not yet sizeable for corporate credit standards,' Tan pointed out. Malaysian Consortium of Mid-Tier Companies honorary president Callum Chen said the financing gap remains a key barrier for MTCs to grow. 'MTCs need more support. The myth is that MTCs don't need support,' he said. 'Without the funds, without the support from the banks, how can we grow?' According to Chen, a scheme like this not only helps mid-tier businesses, but creates ripple effects across the broader economy. 'When mid-tier companies expand, we bring in more foreign exchange, create more employment and pay more taxes,' he said. Meanwhile, Federation of Malaysian Manufacturing vice-president Datuk Noraini Soltan said the capital-intensive nature of the manufacturing sector makes access to financing critical – not just for efficiency, but also to stay competitive globally. 'Many of our members are exporters. They need improved access to affordable financing to initiate environmental, social and governance or ESG efforts to meet supply chain compliance,' she said during a panel discussion titled 'Innovative financing: Leveraging bank and CGC support for business growth'. 'They're ready to do their part, but lack the financial muscle to get started.' She called for financial tools tailored to MTC profiles and simplified access frameworks. 'Working capital is currently under severe strain. Leveraging CGC's guarantee scheme can be transformative – especially for companies investing in sustainability or gearing up for future shocks.' CIMB Bank Bhd group commercial banking head of SME banking Jaya Balan Kathiravalu said mid-tier companies, while not often discussed, are very much part of the banking ecosystem. 'If you look at the SME setup, we talk about micro, small and medium – but there's still a portion we don't talk a lot about, which is the MTCs. And that's actually a big 25% to 30% for banks,' he said. He added that banks are already organised to support the segment. 'Within the bank, we have dedicated teams for micro, small, medium and large businesses. So there's no shortage of focus in driving growth across all core segments. 'For the country to grow, all portions of the business must grow as an ecosystem,' he said, adding that businesses should also invest more in research and development to stay competitive and avoid losing market share. Bank Islam Malaysia Bhd group institutional banking director of commercial client solutions Ahmad Haliman Abdul Halim said the current environment offers a reset moment for MTCs. 'We see this not just as a hurdle but a catalyst for MTCs to strengthen resilience and pursue new purpose-driven growth,' he said. 'That includes investing in digitalisation, ESG compliance and operational excellence to move up the value chain.' CGC, established in 1972 to assist micro SMEs with inadequate or without collateral to get loans from banks by providing guarantees, is 78.65%-owned by Bank Negara and 21.35% owned by the commercial banks in Malaysia. As of June 2025, CGC has provided over 540,000 guarantees and financing to MSMEs valued at over RM100bil since its inception.
The Star
6 days ago
- Business
- The Star
‘Toll hike delay eases burden on daily commuters'
Welcome move: Toll hike freeze involves 10 highways where toll rates are scheduled for a revision. PETALING JAYA: The postponement of toll rate hikes this year is expected to benefit and ease the burden of toll payments for about 941,000 users, particularly daily commuters travelling to work, says the Works Ministry. Its minister Datuk Seri Alexander Nanta Linggi said the announcement would provide much-needed relief to the people. He said the government will bear over RM500mil in compensation to the affected concessionaires to ensure the highways continue operating safely and efficiently. 'This was not an easy decision, but it was made with careful consideration and full responsibility. 'It proves the voice of the people is heard and given priority in every policy implemented by the government,' he said in a statement. Prime Minister Datuk Seri Anwar Ibrahim had announced the toll hike freeze as part of the government's 'appreciation for the people' initiative aimed at alleviating cost-of-living pressures. Nanta applauds the move. The freeze involves 10 highways where toll rates are scheduled for a revision this year. Nanta said the move reflects the government's concern towards challenges faced by the people, especially those who commute daily for work. He also reiterated his ministry's commitment to ensuring the country's roads and highways remain in good condition, are safe to use, and are accessible to all, regardless of background. Meanwhile, incentives announced show that the government is aware of the realities faced by the rakyat, said the Parliament's Government Backbenchers Club. Its chief Datuk Mohd Shahar Abdullah said the announcement reflected the government's commitment in putting the people's interest first. 'It also goes to show that the government does not only implement policies but is aware of what is going on the ground. 'It proves that efforts are done to find a comprehensive solution to ensure shared prosperity,' he said. Mohd Shahar added the incentives announced by the Prime Minister would ease the cost of living, particularly for those in the B40 and M40 groups, which in turn could help spur the local economy in a more sustainable manner.
