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'Taxing cloud providers not good idea'
'Taxing cloud providers not good idea'

New Straits Times

time4 days ago

  • Business
  • New Straits Times

'Taxing cloud providers not good idea'

KUALA LUMPUR: Any plan to impose a levy on cloud service providers (CSPs) will be counterproductive, says a top industry executive. Small and Medium Enterprises Association (Samenta) national president Datuk William Ng said SMEs face the brunt of increased costs that slow their cloud adoption, while providers may curb investment - a dynamic that threatens Malaysia's ambition to be a digital investment hub. In most other markets, NG said, universal service levies remain focused on telecom operators rather than application-layer services, as expanding them into cloud services will likely have adverse impact on growth, competition and gross domestic product. "We're already seeing escalating costs from cloud service providers. Some global providers have increased their fees by 15 per cent to as much as 250 per cent over the past three years. "Since migration between platforms is rarely straightforward, SMEs affected by these price hikes often have little choice but to absorb the extra cost," he told Business Times today. Ng was commenting on Khairy Jamaluddin and Shahril Hamdan's statements suggesting that a six per cent levy on CSPs under the universal service provision (USP) fund is in the offing. In the latest episode of the Keluar Sekejap podcast, Khairy and Shahril said the prospect may increase operational costs for SMEs and weaken Malaysia's attractiveness as a key destination for digital investment. Ng said a more balanced approach would be to register and regulate the CSPs and to apply the same anti-profiteering rules that our SMEs are already subject to. "However, that would require a fundamental rethink of the USP framework itself. Penalising providers while also taxing their growth is unrealistic," he added. Meanwhile, Khairy and Shahril raised concerns that the levy, if implemented, would have knock-on effects across the digital economy ecosystem. Khairy warned that the levy could drive up costs for consumers and businesses, potentially hindering digital adoption. "Six per cent of the revenue is not small. It's a substantial amount. So naturally, CSPs will pass on that cost to their customers. "Among them are e-commerce platforms serving SMEs and businesses that rely on the cloud to boost productivity. Those custimers will, in turn, pass the cost down to consumers," he said. Shahril pointed out that over 90 per cent of businesses in Malaysia are SMEs, many of which are still struggling to embrace digital technologies. The additional cost, he added, would further hinder cloud adoption which is a key component in SME digitalisation. "One of the key challenges for SMEs is achieving digitalisation, given the barriers they already face. "Adding further costs due to the USP, which are likely to be passed on, will only deepen resistance to adopting cloud solutions, a critical component of their digital transformation journey. "So this really raises concerns about how such a move negatively impacts one of the very economic development models that have been actively promoting," he added. Khairy noted that no other Southeast Asian country imposes such a levy on CSPs. He warned that global tech giants such as Amazon Web Services (AWS), Microsoft and Google may view Malaysia as less competitive compared to Singapore, which does not impose any CSP-specific taxation. "I'm sure these companies have already raised the matter with US trade representatives," said Khairy, proposing that the government delay the implementation of the levy by a year to allow time for further discussions with foreign investors. Khairy said the USP fund was originally imposed on telecommunications companies (telcos) like Maxis Bhd and Telekom Malaysia Bhd to fund basic infrastructure development, such as communication towers in rural areas. However, he argued that the same logic does not apply to CSPs which operate under a different business model. "I'm just trying to understand this. Telcos are required to provide widespread services to everyone because we aim for universal coverage. But not everyone needs a cloud service provider. So it doesn't quite make sense to equate CSPs with the USP obligation," he said. Khairy expressed concern that the levy may be based on the assumption that CSPs must "give back" due to their high consumption of electricity and water – even if those resources come from renewable sources. But if that's the case, he argued, the mechanism should be a separate environmental or resource levy instead of the USP fund. Khairy and Shahril said the government must clarify the true rationale behind the levy. They suggested postponing its implementation to allow stakeholder engagement and dialogue with industry players and foreign investors. "We're not rejecting it outright. But there should be clear justification, and no rush.

KPDN seizes over 16,000 litres of diesel in Penampang raid
KPDN seizes over 16,000 litres of diesel in Penampang raid

Daily Express

time16-07-2025

  • Business
  • Daily Express

KPDN seizes over 16,000 litres of diesel in Penampang raid

Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 Text Size: Some of the Intermediate Bulk Container (IBC) tanks suspected to contain subsidised diesel. - Pic by KPDN KOTA KINABALU: The Sabah office of the Domestic Trade and Cost of Living Ministry (KPDN) uncovered the unauthorised storage of 16,180 litres of subsidised diesel during a raid at a premises in Kampung Sindaanan, Kobusak, Penampang on Tuesday (July 15). The evening raid led to the seizure of a four-wheel-drive Isuzu Trooper, equipment, and the diesel, all valued at RM53,527, with a local man in his 30s detained to assist investigations under the Control of Supplies Act 1961. Advertisement According to Sabah KPDN Director Shahril Nizam Shahidin, the operation followed a week of intelligence gathering and public tip-offs, and initial checks revealed the premises had no valid licence or approval to store controlled items. The case is being investigated under several provisions of the Control of Supplies Act and its regulations, which carry penalties of fines up to RM1 million or imprisonment for individuals, and up to RM2 million for companies. Shahril said the ministry will continue proactive checks and encourages the public to report suspected misuse of controlled goods, noting that 1,179 enforcement actions and over RM22 million in seizures have been recorded in Sabah so far this year. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

World Hydrogen Asia 2025: Abang Johari to highlight S'wak's role in Asia's clean energy future in Tokyo
World Hydrogen Asia 2025: Abang Johari to highlight S'wak's role in Asia's clean energy future in Tokyo

Borneo Post

time09-07-2025

  • Business
  • Borneo Post

World Hydrogen Asia 2025: Abang Johari to highlight S'wak's role in Asia's clean energy future in Tokyo

Abang Johari arrives at the World Hydrogen Asia 2025 conference venue accompanied by Shahril (left). – Ukas photo KUCHING (July 9): Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has arrived in Tokyo, Japan today for a two-day official working visit to attend the World Hydrogen Asia 2025 conference. He touched down at Narita International Airport at 5.25pm local time, accompanied by a delegation that includes State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, State Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni; and Deputy State Secretary (Economic Planning and Development) Dato Sri Dr Muhammad Abdullah Zaidel. According to a Sarawak Public Communications Unit (Ukas) report, Abang Johari was received by Malaysian Ambassador to Japan, Datuk Shahril Effendi Abd Ghany; State Deputy Minister of Utilities (Sarawak Energy and Petros) Dato Ibrahim Baki; and other senior state officials at the conference venue. Tomorrow (July 10), the Premier is scheduled to deliver a keynote address titled 'Sarawak's Hydrogen Vision: Catalysing Green Growth for Asean and Beyond'. His presentation will highlight Sarawak's Hydrogen Economy Roadmap, integrated renewable energy strategy, public-private collaboration, and investments in hydrogen technologies – from mobility solutions to future export potential. Ukas stated that Sarawak has emerged as a regional leader in green hydrogen development, capitalising on its abundant hydroelectric resources, clear policy framework, and strategic international partnerships. The Premier's participation reflects growing recognition of Sarawak's leadership in advancing clean energy across Asia. Abang Johari is also slated to join a panel discussion on aligning hydrogen policy support across the Asia-Pacific region, alongside Director-General for International Carbon Neutrality Policy at Japan's Ministry of Economy, Trade and Industry, Shinichi Kihara; Saudi Arabia's Ministry of Energy advisor, Osama Melebari; and Taiwan's Institute for Democracy, Society and New Technology Research Fellow, Dr Tsaiying Lu. The World Hydrogen Asia 2025 conference brings together global industry leaders and policymakers to accelerate the continent's transition to a clean hydrogen economy. Later in the day, Abang Johari is also scheduled to meet with representatives from Sumitomo. He is expected to return to Sarawak on Friday (July 11). abang johari tokyo World Hydrogen Asia 2025

Shahriman Shamsuddin resigns from Sapura Energy Board amid ongoing dispute, MACC probe
Shahriman Shamsuddin resigns from Sapura Energy Board amid ongoing dispute, MACC probe

New Straits Times

time26-06-2025

  • Business
  • New Straits Times

Shahriman Shamsuddin resigns from Sapura Energy Board amid ongoing dispute, MACC probe

KUALA LUMPUR: Sapura Energy Bhd announced on Wednesday that Datuk Shahriman Shamsuddin has resigned as a non-independent, non-executive director, with immediate effect. In a filing with Bursa Malaysia, the company said Shahriman stepped down due to other personal commitments, adding that there were no disagreements with the board and no matters requiring shareholder attention. According to the company's latest annual report, Shahriman holds an indirect 11.25 per cent stake in Sapura Energy via Sapura Holdings Sdn Bhd, alongside his brother, Tan Sri Shahril Shamsuddin, who also holds a direct 0.95 per cent stake. Shahriman's association with the group dates back to 2008, when he served as a director of SapuraCrest Petroleum, prior to its merger with Kencana Petroleum in 2012 to form SapuraKencana Petroleum Bhd, later rebranded as Sapura Energy Bhd in 2017. Shahril, the group's founder, led the company as president and group CEO for 25 years, retiring in March 2021. His resignation comes amid a high-profile legal dispute between the brothers. In September 2024, Shahriman filed a petition to wind up Sapura Holdings, the family's private investment vehicle, citing the need for a fair division of assets. Shahril is opposing the petition, and the case is currently pending in court. This marks Shahriman's second resignation in recent months, following his departure as managing director of Sapura Resources Bhd on October 29, 2024. The announcement also coincides with news from the Malaysian Anti-Corruption Commission (MACC), which on the same day confirmed two ongoing investigations involving Sapura Energy. The probes relate to the alleged misuse of RM12 million in 2018 and a separate US$3.3 million (RM14 million) bribery case from 2011, when the company operated under the name SapuraCrest Petroleum Bhd.

Transfer UMS protest students to Peninsular, says politician
Transfer UMS protest students to Peninsular, says politician

Borneo Post

time25-06-2025

  • Politics
  • Borneo Post

Transfer UMS protest students to Peninsular, says politician

Shahril KOTA KINABALU (June 25): The 13 Universiti Malaysia Sabah (UMS) students involved in the Gempur Rasuah Sabah 2.0 protest should be transferred to universities in Peninsular Malaysia, said a political leader. Gabungan Rakyat Sabah (GRS) Beaufort Youth chief Mohd Shahril Osin supported Prime Minister Datuk Seri Anwar Ibrahim and Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir's stance that the 13 students should not be expelled from UMS but he urged Zambry and the Ministry of Higher Education to consider more long-term action, including transferring them to Peninsular Malaysia or to their respective home states. 'We don't want incidents like this to become a culture among students who do not respect the laws of Sabah,' he said in a statement today. 'If they are not interested in studying at UMS and only see the campus as a platform for political activism, it would be better for them to be transferred to a university in their home state.' UMS Vice-Chancellor Prof Datuk Dr Kasim Mansor had stated the 13 students could face disciplinary action under the Universities and University Colleges Act 2012, which may include suspension or expulsion. Yesterday, Anwar advised that UMS students involved in the protest should not face expulsion. He acknowledged that the students may have erred, but stressed that their education and future should remain a priority. Shahril, who is also the Parti Gagasan Rakyat Sabah (Gagasan Rakyat) Klias youth chief, claimed that most of the students involved in the protest were not native Sabahans, but rather students from Peninsular Malaysia, believed to have been mobilised under the influence of opposition parties. 'The protest clearly shows an attempt by certain parties to exploit students to create a negative perception of the state government. Some opposition leaders were even seen at the protest,' he said. He stressed that if these students were genuinely serious about fighting corruption, they should have the courage to speak out in their own states, which also face major corruption cases involving political figures, rather than turning Sabah into a ground for cheap political experimentation. Shahril also urged Zambry to take responsibility for all issues arising at UMS, including unresolved basic problems like water supply and student welfare. 'UMS deserves serious attention. We acknowledge there are logistical and infrastructure challenges, but the ministry cannot allow this institution to be continuously targeted by the frustrations of students who don't fully understand the context of Sabah's development,' he said. 'If these students claim UMS has many issues, then they should apply for a transfer to another university. We won't stop them. In fact, it's better than having them remain in Sabah while displaying disrespectful attitudes and challenging the sovereignty of the state's laws,' he opined. According to Shahril, if the students are genuinely committed to anti-corruption efforts, they should return home and work with PMX to clean up administration in their own states. 'If they truly want to fight corruption, go and march in Selangor, Penang, or Negeri Sembilan. Corruption isn't exclusive to Sabah. Don't be hypocrites,' he said firmly. He also warned that such incidents should not be taken lightly as they involve elements of provocation, defiance against the Royal Malaysia Police (PDRM), and possibly orchestrated efforts to destabilise the state ahead of the upcoming 17th Sabah State Election. While expressing support for PMX's commitment to fighting corruption, Shahril urged that the same approach be applied fairly and without double standards. 'We in Sabah also reject corruption. But we also reject destructive forms of activism. Manipulating students, exploiting their emotions, then backing away when things get tense — that is cowardice,' he said. He also called on all parties, including opposition leaders, to stop using institutions of higher learning like UMS as platforms for political propaganda, and instead to respect universities as places for gaining knowledge and shaping ethical, mature future leaders. 'UMS is a pride of Sabah. Don't tarnish its reputation with outside agendas. We want students to think freely, but not to the point of being used as tools for political interests that could destroy their own future,' he stressed. The Gempur Rasuah Sabah 2.0 protest, held from June 21 to 22, saw students gather peacefully to protest against corruption and unresolved water issues on campus. However, the rally drew controversy when some demonstrators burned caricatures of the Prime Minister on the final day. Meanwhile, student group Suara Mahasiswa UMS has launched the #SABAH3 campaign, calling for the immediate release of three activists recently detained under the Sedition Act 1948. The campaign follows the arrest of their leader, Muhamad Fadhil Muhamad Kasim, member Aliff Danial Badrul Akmal Hisham and local activist Sabir Syarifuddin. In a statement posted on Instagram on Tuesday, Suara Mahasiswa UMS claimed the trio were wrongly detained for their involvement in the recent Gempur Rasuah Sabah 2.0 rally. They said the two UMS undergraduates were arrested at the Kota Kinabalu District Police Headquarters while lodging a police report, after acid was allegedly splashed on Fadhil's car. 'We strongly reject this abuse of power and demand that the authorities release all three activists immediately. This is why we are launching the #SABAH3 campaign — to mobilise public support,' the group said. Parti Warisan legal adviser Chin Tek Ming, who was also summoned by police in connection with the rally, voiced his support for the students. In a statement yesterday, he confirmed giving a statement to the authorities earlier but clarified that he was not present during the caricature-burning incident. While not condoning the burning of placards, he emphasised that the students felt they had no other avenue to express their grievances.

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