Malaysia

KUALA LUMPUR : The revision of Malaysia’s sales and service tax (SST) regime represents a deliberate fiscal strategy to place the nation’s public finances on a more sustainable trajectory, according to leading tax professionals. PwC Malaysia Tax Leader Steve Chia noted that the review, outlined in the 2025 national budget last October, should not come as a surprise and encouraged the public to interpret the adjustments within a broader economic framework. “This revision supports Malaysia’s medium-term fiscal objectives, but a longer-term revenue strategy is still required to ensure consistent and sustainable contributions to the national budget,” Chia said in a statement to Bernama. He added that despite the wider net cast by the expansion, the government remains committed to limiting the scope to selected non-essential goods and business-to-business (B2B) services, minimising direct impact on the rakyat. Finance Minister II Amir Hamzah Azizan recently announced that the revised SST structure would come into effect on 1 July, in line with government efforts to strengthen fiscal resilience and bolster public welfare initiatives. Chia highlighted that one of the key implementation challenges would be ensuring that additional costs do not cascade through the supply chain and burden consumers. He acknowledged that the government had engaged actively with relevant stakeholders—including industry associations and tax professionals—since the budget announcement to better understand sector-specific implications. “These revisions are not made in isolation. They are informed, targeted decisions designed to expand the tax base while safeguarding the general public from unnecessary hardship,” he said. “The government has been prudent in identifying the areas for rate adjustment and scope expansion, maintaining a clear emphasis on protecting public welfare.” KPMG Malaysia Head of Tax Soh Lian Seng echoed the sentiment, describing the current SST framework as less comprehensive than the former goods and services tax (GST). He said the revision appears to be part of a broader push towards a more progressive tax structure. “This is a calculated move to improve revenue collection and fiscal consolidation in the medium term,” Soh said, adding that by broadening the base and refining the SST scope, the government is aiming to promote both fairness and efficiency in the tax system. Soh also predicted a temporary increase in consumer spending ahead of the 1 July implementation date, similar to patterns observed prior to the GST rollout in 2015. However, he noted that such behaviour is typically short-lived. “While some inflationary concerns may emerge, the overall impact is expected to be modest. With various exemptions and relief measures in place, the revised SST should ultimately contribute positively to the national coffers and support the broader goal of fiscal sustainability,” he added. -Bernama

PETALING JAYA: The Malaysian Institute of Management (MIM), with support from Konrad-Adenauer-Stiftung (KAS) Malaysia, convened a regional conference aimed at fostering closer ASEAN collaboration to strengthen the region’s digital economy through artificial intelligence (AI). The event as part of MIM Crucial Conversations Series brought together policymakers, AI experts, industry leaders, as well as representatives from National AI Office (NAIO) Malaysia and Microsoft, to address digital policy gaps and prepare regional leaders for the rapid growth of artificial intelligence. Titled “AI & Regional Collaboration: Strengthening ASEAN’s Digital Economy,” the hybrid conference featured expert-led plenaries and breakout tracks on key issues such as AI governance, regulatory convergence, digital sovereignty, and the emerging digital economy. MIM Chairman Datuk Zainal Amanshah Zainal Arshad emphasized the importance of collaborative leadership to navigate the evolving AI landscape. “There is a need for ASEAN nations to enhance digital readiness and policy coherence to ensure inclusive and responsible growth in the AI era,” he said in his opening speech. Delivering the keynote address, Shamsul Izhan Abdul Majid, Head of NAIO, called for responsible and people-focused AI adoption across ASEAN. He also highlighted Malaysia’s efforts to advance clear guidelines and regional cooperation. A key highlight of the conference was the launch of the MIM AI Leadership Certification Programme, which he officiated. The programme offers a structured pathway for professionals to build the knowledge and confidence needed to lead responsibly in an AI-driven world. As leadership evolves alongside technological disruption, decision-makers are expected not just to understand AI, but to guide its ethical adoption and scale its impact across organisations. Building on this, Kabenesh Eliathamby, MIM Chief Executive Officer said, “AI is more than a tool; it’s a strategic imperative. Its value lies in how leaders use it to elevate thinking, leadership, and impact. The future belongs to those who lead this transformation with purpose and courage”. The event brought together local and international experts across two plenary sessions and industry-focused tracks, featuring speakers from NAIO, ISIS Malaysia, Microsoft, GX Bank, Ara Research AI, RiskAI Technologies GmbH, and the Cyfluence Research Centre in Germany. Discussions covered topics ranging from ethical AI policy and ASEAN’s digital economy to real-world applications such as influence operations and the region’s AI-ready tech stack. In closing, MIM Vice Chairman Azlan Abdullah reaffirmed the Institute’s commitment to preparing leaders for an AI-powered future.  The MIM Crucial Conversations Series is an ongoing initiative by MIM that brings together experts, leaders, and stakeholders to discuss pressing and emerging issues affecting Malaysia and the region. Through these dialogues, MIM fosters knowledge sharing, collaboration, and actionable insights to drive sustainable development and effective management practices.

KUALA LUMPUR : The Malaysian Anti-Corruption Commission (MACC) is set to summon a Tan Sri for questioning in connection with the alleged misappropriation of sukuk funds tied to a major highway project in the Klang Valley. The individual, believed to be a highway concessionaire, has recently been discharged from a private hospital, where he was undergoing treatment. The MACC has confirmed that he is also being investigated for offshore asset holdings and involvement in gambling activities valued in the millions of ringgit. MACC Chief Commissioner Tan Sri Azam Baki, speaking to Astro Awani on Saturday, stated that the individual has yet to provide a statement due to his recent medical condition. “A statement has not yet been recorded from the Tan Sri, but I have been informed that doctors have recently allowed him to be discharged. My officers will be contacting him soon to arrange an appointment,” Azam said. Although the individual is a key witness in the investigation, MACC has already obtained statements from 45 other witnesses, some of whom have been recalled for further questioning. Azam noted, “He is indeed one of the individuals we have yet to question, but we already have testimonies from other witnesses. I cannot confirm whether additional witnesses will be required after his statement.” Sources confirmed that prior to arranging an interview, MACC had secured a medical assessment from the Tan Sri’s attending doctor to verify his condition. The investigation focuses on the suspected misappropriation of sukuk bonds allocated for the construction of the highway. On 3 June last year, MACC revealed that it had seized assets valued at approximately RM143 million from the individual in question. The assets confiscated include luxury vehicles and properties located both domestically and abroad, with holdings in London and Switzerland among them. Among the seized items are 14 personal bank accounts containing RM4.5 million, eight corporate accounts with RM33 million, a luxury condominium and a parcel of land valued at RM24.5 million, as well as nine high-end vehicles worth RM7.65 million. In addition, authorities seized designer watches valued at RM25 million, handbags worth RM3 million, jewellery and diamonds estimated at RM6 million, and four horses valued at RM400,000. Other confiscated assets include premium alcoholic beverages worth RM3 million, foreign holdings estimated at over RM15 million, and gambling-related transactions amounting to approximately RM20 million. A formal notice to declare assets has already been issued to the Tan Sri and other related parties as part of the ongoing investigation. -The Star

KUALA LUMPUR: The High Court has dismissed an application by Hydroshoppe Sdn Bhd, the former operator of the Kuala Lumpur Tower, to initiate contempt of court proceedings against Communications Minister Datuk Fahmi Fadzil and several other parties. Presiding judge Roz Mawar Rozain ruled that there were no legal grounds to grant leave for contempt proceedings, citing the absence of any temporary injunction following the company’s unsuccessful application—a decision previously upheld by the Court of Appeal. The court further found no merit in Hydroshoppe’s claim that government authorities had unlawfully encroached on its properties following the expiration of its operating contract on 31 March. “This court is not satisfied there is a prima facie case for this court to grant leave for contempt of court (to ask the parties to answer),” said Roz Mawar in delivering her judgment. As a result, the court ordered Hydroshoppe and its subsidiary, Menara KL Sdn Bhd, to pay legal costs totalling RM15,000 to Fahmi and the government. An additional RM10,000 in total costs was awarded to other named defendants, namely LSH Service Master Sdn Bhd, LSH Best Builders Sdn Bhd, and Service Master (M) Sdn Bhd. In addition to the minister, Hydroshoppe and Menara KL had filed contempt proceedings against two office bearers from the three companies named, as well as six other individuals. These include Dang Wangi district police chief Sulizmie Affendy Sulaiman, Federal Land Commissioner Datuk Muhammad Azmi Mohd Zain, and Communications Ministry Secretary General Datuk Mohamad Fauzi Md Isa. Separately, the High Court is currently hearing Hydroshoppe and Menara KL’s ongoing application for an inter partes injunction. -The Edge Malaysia

GEORGE TOWN: The Malaysian government has announced a deferment in the implementation of the electronic invoicing (e-invoice) system, following constructive dialogue with business owners, particularly those within the micro, small, and medium enterprise (MSME) segment. Deputy Finance Minister Lim Hui Ying confirmed that the decision was made after careful consideration of industry feedback and readiness. Lim stated that the postponement is intended to provide companies with additional time to adjust to the Inland Revenue Board’s (IRB) e-invoicing framework. The system, initially scheduled to be rolled out on 1 July 2025 for businesses with annual sales of RM500,000 and above, will now be implemented in three revised phases. According to an IRB statement dated 5 June, taxpayers with income or annual sales below RM500,000 will be exempt from the system for the time being. Those with revenue between RM1 million and RM5 million will begin using the system from 1 January 2026, while those earning up to RM1 million will transition on 1 July 2026. “The original plan was to commence implementation on 1 July 2025 for businesses generating RM500,000 and above in annual sales. However, in response to concerns raised by MSMEs, the government has revised the approach to include three additional phases,” Lim said during the launch of smart toilets at the Lebuh Cecil public market. She reiterated the Madani government’s commitment to supporting the business community, particularly in adapting to regulatory transformations that impact operational processes. Lim also confirmed that the third phase of e-invoicing, which commences on 1 July 2024, will apply to taxpayers with annual income or sales between RM5 million and RM25 million. In a separate announcement, Lim addressed the stamping of employment contracts, clarifying that the IRB has not previously enforced this requirement. Moving forward, contracts executed prior to 1 January 2025 will be exempt. However, beginning 1 January 2026, employment contracts will be subject to stamp duty in line with existing legislative provisions. She expressed hope that companies will ensure compliance with all stipulations under the Stamp Act 1949, especially with regard to the stamping of employment contracts. -Bernama

PETALING JAYA : Econpile Holdings Bhd has secured its first contract under the Penang Light Rail Transit (LRT) Mutiara Line, a development that positions the company for additional job wins as the RM10 billion project gains momentum. On 5 June, Econpile announced its award of a RM42.8 million bored piling sub-contract covering three stations from East Jelutong to Gelugor, part of the overall 21-station alignment. Construction works are scheduled to commence on 1 August 2025 and are expected to conclude by 31 October 2027. According to CGS International (CGSI) Research, this development confirms expectations that the Penang LRT Mutiara Line is progressing according to schedule, with full-scale construction anticipated in the fourth quarter of 2025. CGSI highlighted that the broader construction sector stands to benefit significantly, particularly Gamuda Bhd, which is expected to secure an additional RM3 billion in contracts, supplementing its existing RM5 billion in awarded works for the project. Other potential beneficiaries include Malayan Cement Bhd, HSS Engineers Bhd, IJM Corp Bhd, and Sunway Construction Group Bhd. As at June 2025, Econpile’s new job wins for the year total RM333 million, contributing to an order book valued at RM487 million. The group is targeting RM400 million to RM450 million in new contract wins for the financial year ending 31 December 2025, maintaining a performance trajectory consistent with the previous year. CGSI noted that the Penang LRT bored piling contract is expected to yield a gross profit margin of approximately 10% to 15%, surpassing the margins from recent property development-related piling contracts. This improved profitability is projected to support stronger earnings performance in the fourth quarter of 2025. CGSI Research has reiterated its “add” rating on Econpile, with a target price of 46 sen, citing the group’s robust presence in infrastructure works and its position as the operator of the largest bored pile fleet in Malaysia. CIMB Securities Research also commented on the contract, noting that it forms part of a broader civil works package undertaken by the SRS Consortium Sdn Bhd, led by Gamuda (60%), Ideal Property Development Sdn Bhd (20%), and Loh Phoy Yen Holdings Sdn Bhd (20%). The project developer and asset owner of the Mutiara Line is Mass Rapid Transit Corp Sdn Bhd. Having secured this initial major piling contract, CIMB Research believes Econpile is strategically positioned to compete for larger upcoming piling-related works. The firm maintains a “buy” rating on Econpile, with a target price of 38 sen, reflecting a valuation of 19 times its projected 2026 core earnings per share of 1.9 sen. -The Star

KUALA LUMPUR: Bursa Malaysia Securities Bhd has issued a public reprimand against Meridian Bhd and levied fines totalling RM350,000 against five of its directors for breaching Main Market listing requirements. According to a statement released today, Meridian was found to have failed in making an immediate announcement regarding its status as having insignificant business or operations following the release of its unaudited quarterly report for the financial period ended 30 June 2023 (4Q FY2023), which was announced on 29 August 2023. Bursa Malaysia clarified that the company’s business operations were deemed insignificant, given that its consolidated revenue for the quarter stood at RM2.738 million. This figure represented only 0.93 per cent of Meridian’s share capital of RM294.021 million as of 30 June 2023. As a consequence, the regulatory authority imposed fines on five directors. Datuk Yap Ting Hau, who served as executive director and chief executive officer until his resignation on 29 December 2023, was fined RM100,000. Two other directors, Tang Boon Koon and Chew Shin Yong, received fines of RM100,000 and RM50,000 respectively. Ng Kok Hok and Kunamony S Kandiah were each fined RM50,000. -Bernama