Kuching: Wong King Yii, Treasurer of the Democratic Action Party Socialist Youth (DAPSY) Sarawak, has called on the Malaysian government to postpone the implementation of the expanded Sales and Services Tax (SST), citing heightened economic uncertainty linked to ongoing tariff discussions with the United States.
While acknowledging the government’s long-term fiscal goal to expand the tax base, Wong emphasised that the current SST rollout timeline is too abrupt, creating serious operational challenges for businesses.
“I support the government’s efforts to improve national revenue, but the short implementation window for SST expansion makes it difficult for businesses to adjust to new compliance and reporting standards,” Wong said in a statement.
He warned that compounded financial pressures stemming from both SST-related cost increases and potential tariffs from the US could severely impact not only businesses but also the public.
Wong argued that delaying the SST expansion until the conclusion of US tariff negotiations would allow for more informed and strategic economic planning.
Additionally, Wong urged the government to revise the SST exemption threshold for micro, small, and medium enterprises (MSMEs).
He proposed raising the current limit from RM500,000 to RM1 million in annual sales, saying the adjustment is essential to shield more small businesses from sudden tax burdens.
“Many MSMEs are already struggling with market volatility. Raising the exemption threshold will give them breathing room to survive upcoming challenges, both domestic and international,” he added.
Wong concluded by reiterating his call for a thorough policy review and a deferment of the SST expansion, stressing that premature implementation could lead to disproportionate harm for Malaysian SMEs and the broader public.
