Kuala Lumpur, 16 June 2025 – Yayasan Usahawan Malaysia today issued an urgent appeal to Prime Minister YAB Datuk Seri Anwar Ibrahim to abolish the outdated Sales and Service Tax (SST) and implement a 4% Goods and Services Tax (GST), positioning Malaysia among 160+ nations using this equitable, efficient taxation model.

🔥 Industries Decisive Voice

Together with industry partners and the collective voice of entrepreneurs and enterprises, Datuk Nitesh Malani, Chairman of Yayasan Usahawan Malaysia, asserted:

“Malaysia’s SST is a relic dragging our economy into obsolescence.

It must be replaced immediately with a globally proven GST system at 4% – the fair, broad-based solution implemented by the UK, Australia, Singapore, and 90% of developed economies. GST eliminates hidden tax layers, ensures transparency, and makes businesses globally competitive. We call on YAB Prime Minister to demonstrate decisive leadership:

Abolish SST now and implement GST without delay.”

🌍 Why Global Standards Demand SST Replacement

1. SST’s Structural Inequity
   – Taxes production stages (cascading effect), inflating consumer prices
   – Excludes high-income sectors and digital economy, losing RM8–10B/year revenue
   – Burdens 450,000+ businesses with redundant compliance
2. GST: The Global Gold Standard
   – Adopted by 160+ nations including ASEAN peers (Singapore: 9%, Thailand: 7%)
   – Broad-based fairness: Uniformly taxes consumption, exempting essentials
   – Input Tax Credits cut business costs by 15–30%, boosting SME viability
3. Pro-Poor Protections
   – Zero-rated essentials: Food, education, healthcare
   – Direct B40 cash transfers funded by GST’s RM30B/year revenue surge
   – Accelerated wage growth to offset inflation

⚖️ Urgent Call to the Prime Minister

Yayasan Usahawan Malaysia reinforces the need to:

1. Immediate SST abolition and GST implementation at 4% by Q1 2026
2. ASEAN-best safeguards:
   – Independent GST tribunal to resolve refund delays
   – Digital reporting systems to prevent fraud
   – Mandatory zero-rating of 30+ essential items
3. Revenue reinvestment: 50% of new GST income for B40 subsidies and SME grants

📈 Economic Imperative

“Every month of SST costs Malaysia RM1.2B in lost revenue and competitiveness,” warned Datuk Nitesh. “GST isn’t a choice – it’s an economic necessity to fund schools, hospitals, and infrastructure while taxing luxury consumption fairly. The world isn’t waiting; neither should Malaysia.”

💼 Industry Support: Cheng & Co Stands with Entrepreneurs

Cheng & Co, one of Malaysia’s largest SME-focused professional firms, strongly supports Yayasan Usahawan Malaysia’s call to abolish SST and introduce a well-structured GST system.

“We serve over 5,000 SMEs nationwide, and we consistently hear from business owners about how the current SST structure adds compliance burdens, creates tax cascading, and lacks transparency. Malaysia needs a modern tax system that aligns with global practices while protecting the vulnerable. We urge the government to consider a more progressive and equitable replacement for SST that fosters business growth, reduces costs, and improves fiscal sustainability,” said the firm in an official statement.

About Yayasan Usahawan Malaysia

For more information, please contact:
About Yayasan Usahawan Malaysia (YUM)
YUM is a non-government organisation that strives on the frontier of gathering, creating, and developing sustainable companies with strong entrepreneurship traits. The organisation builds credibility by serving as a platform that supports the development of companies across all businesses. It offers programmers tailored with their best interest to ensure that they can achieve their goals while sustaining core values.

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Yayasan Usahawan Malaysia
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Website: www.mypreneurship.org