SME Sarawak chief urges practical GST-style SST for small

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 stay practical for micro and small businesses.

He spoke on Aug 20 in Kuching, responding to government proposals to enhance the SST system.

Why it matters

SMEs form the backbone of Malaysia's economy. New tax features could increase compliance burdens.

Practical design would help small firms avoid excessive administrative costs and operational disruptions.

Impact on Malaysia

The government wants to make the tax system more efficient and broaden its revenue base.

Overly complex features could strain micro and small enterprises, affecting cash flow and competitiveness.

Industry response

Ong said SMEs understand and support the government's objective of improving the tax system.

He urged authorities to consult business associations before finalizing changes.

What to watch

Details of the proposed GST-like features have not been released.

Business groups will likely monitor the design and implementation timeline closely.

What's next

Any SST reforms must balance revenue needs with SME operational realities.

Clear communication and a phased rollout could help reduce compliance stress for small businesses.