Latest news with #SME
Free Malaysia Today
40 minutes ago
- Business
- Free Malaysia Today
75% of small firms exempted from new SST, says trade group
William Ng, president of Samenta, said the association was among the first to raise concerns over the potential impact of the revised sales and service tax. PETALING JAYA : About 75% of small and medium-sized enterprises will be exempted from the additional 8% levy in the revised and expanded sales and service tax (SST) that comes into force on July 1, says a business group. The Small and Medium Enterprises Association Malaysia (Samenta) said a revision to the expanded tax regime announced today effectively exempts about 75% of SMEs from the additional 8% levy. Samenta president William Ng said the association was among the first to voice concerns over the potential impact on small businesses from the expansion of the sales and service tax scheme, Bernama reported. The association said it would not seek further concessions from the government. Ng thanked Prime Minister Anwar Ibrahim for taking note of their concerns and revising the threshold. 'While we will continue to advocate for a balanced and SME-friendly approach in future tax reforms, we consider this matter concluded and will not seek further concessions on the SST expansion,' he was quoted as saying. Earlier today, the finance ministry said the threshold for service tax registration for leasing or rental and financial services had been raised from RM500,000 to RM1 million, to reduce the number of small businesses that would be affected. Ng said the revision effectively exempts about 75% of SMEs from the additional 8% levy under the expanded tax regime. He encouraged the remaining 25% of small businesses to take steps to implement the new rates. Last month, the finance ministry said a 5% to 10% rate would be imposed on non-essential goods from July 1, while the service tax was expanded to include rent, lease, construction, financial services, private healthcare and education. Initially, an 8% service tax rate was to be charged for these services with a registration threshold of RM500,000. With the new revision however, businesses with sales exceeding RM1 million will be required to pay service tax on rental services.
The Star
2 hours ago
- Business
- The Star
Delay expanded SST to next year amid global uncertainty, urges ACCCIM
PETALING JAYA: The government should reconsider implementing the expanded Sales and Services Tax (SST) next year to allow more time for preparation, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). The group said adequate preparation is crucial for ensuring better compliance and smooth implementation. "Our concern is that multiple cost increases are coinciding with a challenging global and domestic economic environment. "This is exacerbated by the uncertainty surrounding trade tariffs policy and ongoing conflicts in the Middle East, which together create significant economic headwinds. "The effects of rising costs, which have been felt in 2025, are expected to persist or influence the business and economic landscape in 2026," it said in a statement on Saturday (June 28). It added that the proposed postponement of the SST implementation was among the issues raised in a letter submitted to Prime Minister Datuk Seri Anwar Ibrahim. "We have respectfully urged the government to defer the implementation of SST to January 2026, starting with 4% for the first two years. "We also asked that taxable services threshold registration be raised higher to RM3mil for rental or leasing services, and construction services, and the threshold of exemption from paying tax for SMEs tenants be raised higher to RM2mil annual sales. "We also proposed a longer exemption period of 36 months for non-reviewable and reviewable contracts to cover all project types due to the type of projects and project cycles," it said. ACCCIM also noted that while the higher SST threshold for rental and leasing services, as well as small and medium enterprise (SME) tenants, will ease compliance and financial burden, a further increase would be more suitable. "Higher threshold is better aligned with the definition of SMEs for the services and other sectors," it said. On the Finance Ministry's recent adjustments to fine-tune the SST framework, ACCCIM said it was a welcome move that they take cautiously. "We cautiously welcomed the government's announcement on the review of the expanded SST, taking into account ACCCIM's concerns and feedback. "This includes matters regarding the timing, spillover effects, scope of SST expansion, SST rate and the registration threshold of taxable services," it said. The revision includes the exemption of SST for selected fruits, higher threshold for rental and leasing services, financial services and the exemption of selected beauty services.
Business Standard
13 hours ago
- Business
- Business Standard
Paisalo Digital announces partnership with State Bank of India to jointly fund SME loans
Paisalo Digital has entered into a Co-Lending Loan Arrangement for SME products with the State Bank of India (SBI), the country's largest public sector bank. This agreement, formalised on June 26, 2025, marks a significant extension of the existing SBI-Paisalo partnership and further strengthens their collaborative platform for inclusive credit delivery. This new co-lending arrangement builds upon the already operational co-lending (formerly co origination) digital platform established between Paisalo and SBI in 2021. It is fully aligned with the Reserve Bank of India's guidelines on co-lending of loans issued on November 5, 2020, which aim to deepen credit flow to priority sectors, including micro, small and medium enterprises (MSMEs), by leveraging the combined reach and strengths of banks and NBFCs. Under this arrangement, SBI and Paisalo will jointly fund SME loans, enabling wider access to formal credit for India's growing base of small businesses, especially in tier 2, tier 3 cities and rural markets. The SBI-Paisalo co-lending platform is a digital platform that offers end-to-end services for loan origination, processing, disbursement, servicing, and recovery, ensuring efficiency and transparency throughout the loan lifecycle.
Business Standard
14 hours ago
- Business
- Business Standard
Paisalo Digital surges on co-lending tie-up with SBI
Paisalo Digital rallied 5.72% to Rs 33.25 after the company announced that it has entered into a co-lending loan arrangement for SME products with the State Bank of India (SBI). The agreement, formalized on 26 June 2025, marks a significant expansion of the existing SBIPaisalo partnership and further reinforces their joint digital platform for inclusive credit delivery. Under this arrangement, SBI and Paisalo will jointly fund loans for small and medium enterprises (SMEs). This initiative will improve access to formal credit, especially in tier-2 and tier-3 cities and rural areas. The SBI-Paisalo co-lending platform offers a fully digital process for loan origination, disbursement, servicing, and recovery, ensuring efficiency and transparency throughout. This new SME-focused collaboration builds on their existing co-lending platform, which started in 2021. It follows the Reserve Bank of Indias co-lending framework released on November 5, 2020. This framework aims to increase credit flow to priority sectors like MSMEs by utilizing the strengths of both banks and non-banking financial companies. Santanu Agarwal, deputy managing director of Paisalo Digital, said, This new arrangement with SBI underlines our shared vision to expand affordable and timely credit access to the backbone of the Indian economy. By leveraging our integrated physical and digital approach and SBIs robust banking infrastructure, we are positioned to scale our impact, drive entrepreneurship, and contribute meaningfully to employment generation across the country. Since its inception, the SBI-Paisalo co-lending platform has served over 94 lakh customers through 3,565 touchpoints. With the addition of SME products, the platform is expected to speed up lending to priority sectors and meet the financing needs of underserved business segments. Paisalo Digital is a non-deposit-taking, non-banking financial company. The registered office of the company is in Delhi, and the head office is in Agra. State Bank of India (SBI) is an Indian multinational, public-sector banking, and financial services statutory body. As of 31 March 2025, the Government of India held a 57.43% stake in the bank. Shares of State Bank of India rose 0.99% to Rs 804.90 on the BSE.
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Business Standard
15 hours ago
- Business
- Business Standard
DHL Express top-line is growing at 12% CAGR in India: SVP-South Asia
DHL Express India is growing at 11-12 per cent CAGR and has expanded its Bengaluru airport footprint with a Rs 34 crore investment to handle SME shipment volumes Aneeka Chatterjee Bengaluru Listen to This Article Germany-headquartered logistics major DHL Express is growing at a compound annual growth rate (CAGR) of 11–12 per cent in India, R S Subramanian, senior vice-president, South Asia, told Business Standard. The top executive noted that India continues to contribute 10 per cent by value to the overall Asia-Pacific portfolio. 'Growth is our big focus. The express industry grows at 1.5 times the Gross Domestic Product (GDP) and every year we have surpassed the mark. Hence, our CAGR in topline in India is growing nearly about 11-12 per cent,' Subramanian said. Eyeing the continued growth momentum, DHL Express has announced the
