The chamber has commended the Government’s commitment to focus and address a number of key issues and policy priorities. President ACCCIM, Datuk Ng Yih Pyng said that the recalibration of the tax related measures demonstrates the Government’s pragmatic approach in its economic policies implementation while ensuring the businesses’ sustainability in managing increasing cost pressures. ACCCIM will continue to work closely with the Government to enhance a resilient and business friendly environment, though more open and constructive engagements.
First, we are pleased that the Government has considered some of our requests to ease operating and compliance costs of MSMEs through (a) A reduction in the service tax on rental to 6% from 8%; (b) Raise the rental service tax exemption threshold for MSMEs to RM1.5 million from RM1 million in annual sales; and (c) To extend e-invoicing implementation for businesses with RM1 million to RM5 million annual revenue for one year to 1 January 2027.
Second, the timely processing and issuance of tax refunds is a positive and pragmatic step that supports business cash flows and sustainability, especially for MSMEs struggling with delayed payments. Businesses often use expected refunds to reinvest in operations, manage expenses, or purchase new equipment.
ACCCIM’s M-BECS indicated that 85.7% of respondents support an automatic tax offset mechanism. On the tax estimation, more than half of respondents (52.6%) indicated that the acceptable minimum threshold for tax estimation under CP204 should be lowered to 50%, compared with the current 85%.
Third, the tabling of three bills: (a) The separation of powers between the AG and public prosecutor to enhance the integrity and independence of the public prosecution system by removing political influence; (b) To implement a 10-year (two-term) limit for Malaysia’s Prime Minister, which will curb power concentration and promoting leadership renewal; (c) The Ombudsman Act, which will enhance greater transparency and accountability in public administration and service delivery; and (d) Freedom of Information (FOI) Act, which would foster government transparency and accountability, unlock government data, making decision-making processes and public spending visible.
Fourth, a speedy implementation of small projects totalling RM2.5 billion budget allocation will benefit small contractors. The chamber is pleased that the government will ensure the agencies providing various financial assistance funds for MSMEs to expedite their disbursement.
