Sarawak SMEs urge practical GST-like tax features

What happened

SME Association of Sarawak (SME Sarawak) president Jordan Ong Chung Siang said any Goods and Services Tax (GST)-like features added to the existing Sales and Service Tax (SST) framework must remain practical and manageable for micro and small businesses.

He spoke in Kuching on Aug 20, responding to government plans to introduce GST-like elements into the current tax system.

Why it matters

SMEs understand and support the government's objective of making Malaysia's tax system more efficient, Ong said.

But he stressed that the design of any new tax features should not burden small enterprises, which often lack the administrative capacity of larger firms.

Impact on Malaysia

Sarawak's SME sector is a key contributor to the state's economy, and the association's position reflects broader concerns among Malaysian small businesses.

If tax features are too complex, compliance costs could rise, squeezing margins for micro and small enterprises across the country.

Industry response

Ong urged policymakers to consult closely with SME representatives before finalizing any changes.

He also called for clear guidelines and sufficient transition periods to help businesses adapt without disruption.

Looking ahead

The government has not yet detailed the specific GST-like features under consideration.

SME Sarawak's statement signals that business groups will push for a simplified, low-burden approach in upcoming tax reforms.

Key Takeaways

• SME Sarawak president Jordan Ong Chung Siang urged practical GST-like features in the SST framework.
• He stressed the need for manageability for micro and small businesses.
• Ong called for close consultation with SME representatives before finalizing tax changes.