Perak: The Perak Federation of Malaysian Manufacturers (FMM) is urging for more engagement sessions to provide clarity to industry players concerning the expanded scope of the Sales and Services Tax (SST), which began on July 1.

According to BERNAMA News Agency, the FMM’s deputy chairman, Mark Chan Chow Loong, emphasized the importance of these sessions as the expansion covers over 3,000 additional items, leading to numerous technical questions among manufacturers.

Chan highlighted the recent announcement of the SST expansion, noting the need for further clarification on its implementation and impact on production costs. He stated that these sessions are crucial for manufacturers to gain a better understanding, particularly regarding the list of products involved, exemption applications, and implications on production costs. He expressed these views during the Special Coffee Series: SST Expansion briefing.

The event was attended by Perak State Development Corporation (PKNPk) CEO Datuk Redza Rafiq Abdul Razak and attracted 450 industry players and manufacturers from various sectors across Perak. Chan explained that while the SST expansion affects raw material costs, the impact differs based on the product type and raw material composition. For example, in the plastics industry, raw materials account for 60 to 80 percent of finished product costs, meaning any additional tax will directly influence prices.

Redza Rafiq stated that the engagement session served as a strategic platform uniting policymakers, implementing agencies, and the business community. He outlined PKNPk’s mission to bridge information gaps between policy announcements and their implementation, emphasizing the need for clarity, confidence, and business continuity. He underscored the importance of faster, more open, and responsive communication in today’s evolving world, noting the session’s role in ensuring comprehensive understanding of policies within business operations.