MITI to monitor impact of raised SST on Malaysian industries — Zafrul
16 Oct 2023
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz has assured that there will be no changes in the prices of products in the industry sector when the sales and service tax (SST) is raised next year, but added that the ministry will continue to monitor the impact of the implementation on the sector.
“For any form of fiscal policy involving tax, there will always be something that the companies would have to incorporate as part of their business plan going forward.
“Whatever impact there is, that is why the prime minister excluded F&B (food and beverages sector) and also included the logistics sector. For the other sectors, we will see and monitor what transpires and what is the result of this decision,” Tengku Zafrul told reporters at the sidelines of the Roundtable Dialogue discussing the New Industrial Master Plan 2030 (NIMP 2030) hosted by the Malaysian Industrial Development Finance Bhd (MIDF).
Tengku Zafrul said the government has a fiscal responsibility to increase its revenue, and that it is important for the industry to understand why Putrajaya is taking such a decision.
During the tabling of Budget 2024 last Friday, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced that the government is planning to raise SST to 8%, from 6% at present, as part of its efforts to increase revenue.
Aside from the higher rate, the scope of the SST will also be widened to include logistics services, brokerage and underwriting, as well as karaoke, while services like F&B and telecommunications are excluded.
On NIMP 2030, Tengku Zafrul said Miti is working to get as many local industries as possible to participate in the national strategic direction in order for the companies to reap the benefits of the spillover effects.
“[This is] because when we bring in big international companies, they always ask who are the local companies that can support them. So this is where local industries are important to bring in FDI (foreign direct investments) as well,” he said.
NIMP 2030 was launched by the prime minister on Sept 1 to provide a national strategic direction to lead the industrial development policies in Malaysia.
The master plan identifies six goals, namely, increase economic complexity, create high value job opportunities, extend domestic linkages, develop new and existing clusters, improve inclusivity and enhance ESG practices.
Overall, the government allocated RM200 million under Budget 2024 to achieve the goals of NIMP 2030.
Source: The Edge Malaysia