Shopping Mall Operators Urge SST Review Amid Rising Costs

The Malaysia Shopping Malls Association (PPK Malaysia) has urged the government to review the expanded Sales and Services Tax (SST), warning it threatens mall sustainability amid surging operational costs and narrowing profit margins. Its latest industry survey revealed that average operating expenses are now 27% higher than service and promotional charges collected, up from 13.4% in 2022, due to escalating electricity tariffs, compliance costs, and the widened SST covering property-related services. Although SST is imposed on tenants, PPKM said it compresses rental affordability, affects lease renewals, and strains landlords subsidising daily operations. Representing 490 malls with RM153 billion in real estate value, PPKM called for Budget 2026 to address these challenges with tax reviews and cost relief measures to safeguard over a million jobs and maintain malls’ vital economic role.