Delays in SST Expansion to Ease Manufacturers’ Burden Amid US Tariff Threats

Malaysia has postponed its planned expansion of the sales and service tax (SST), originally set for May 1, to ease the burden on manufacturers facing potential 24% US tariffs. The decision follows concerns from the Federation of Malaysian Manufacturers about rising costs.

The delay offers temporary relief to businesses amid uncertainties from US tariff policies, though it postpones additional tax revenue for the government. Malaysia’s ringgit strengthened by 0.7% against the dollar, reaching its highest level since October.

SST Expansion

Malaysia’s Ministry of Finance (MOF) has delayed the enforcement of the expanded sales and service tax (SST), originally planned for May 1, to a later unspecified date. The delay is to refine the guidelines and scope for smooth implementation, despite completed nationwide industry engagements.

The Royal Malaysian Customs Department (JKDM), responsible for SST enforcement, has been instructed to prepare draft legislation for the expansion, now scheduled for gazettement on June 1, instead of the initial first-quarter target.

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Staff Writer

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