Kota Kinabalu: The National Consumer Foundation Malaysia (Sabah Chapter) wants the Federal Government to postpone the recent expansion of the Sales and Services Tax (SST), citing severe financial pressure on local traders and contractors.
Its Chairman David Chan said the tax expansion has created an unexpected burden for small businesses already struggling with challenging economic conditions.
“The current economic climate is already marked by global trade uncertainties, weakening consumer spending, and job cuts,” David said in a statement, here, Saturday.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});He said contractors have been particularly hard hit, reporting sharp increases in operating and capital expenditure since the SST expansion took effect. Many businesses are now struggling with cash flow problems, finding it difficult to service loans and meet project commitments.
He said continued financial pressure on small and medium enterprises could have broader economic consequences.
“Imposing further financial stress on the backbone of our local economy may lead to a cascading effect on employment and national productivity,” he said.
He called for a grace period that would allow affected businesses to reassess their financial commitments, engage with financial institutions and realign their cost structures.
He said local business operators are vital to the nation’s supply chains, infrastructure development, and employment creation, arguing that a compassionate and pragmatic policy approach is needed now more than ever.
