Kuala Lumpur: The Malaysian Pineapple Industry Board (LPNM) is optimistic that the reviewed and expanded Sales and Service Tax (SST), which comes into effect on July 1, 2025, will positively impact the growth of the national pineapple industry. Its chairman, Sheikh Umar Bagharib Ali, said the initiative will not only increase national revenue but also create vast opportunities for the development and strengthening of the local fruit industry, particularly pineapples.
According to BERNAMA News Agency, Sheikh Umar emphasized that pineapples, as one of the country’s main fruit commodities, hold great potential for growth. The board anticipates several positive effects that will support the industry’s development, including increased demand for local varieties like the MD2. This demand could enable farmers and local entrepreneurs to expand cultivation areas and boost production.
Sheikh Umar highlighted that higher demand will positively impact farm and market prices of pineapples, improving returns for small-sc
ale growers, young agropreneurs, and agricultural cooperatives involved in the sector. He added that the SST expansion will stimulate downstream sectors such as pineapple juice processing, snack products, and pineapple-based cosmetics, creating job opportunities and enhancing export value.
He further explained that increased demand is expected to attract new investments in smart farming technologies, collection centres, packaging, and efficient logistics and distribution systems, especially in major production areas like Johor, Pahang, Sarawak, and Sabah. The SST expansion on imported fruits indirectly positions local pineapples more competitively in terms of price and quality.
Sheikh Umar also noted that this initiative supports national food security, contributing to long-term goals of reducing dependence on food imports and improving self-sufficiency levels in the fruit sector. He assured that the effects of the SST expansion will not significantly impact imported fruit traders, as the country’s improvin
g economic conditions will benefit them over time.
On Monday, the government announced a targeted review of the Sales Tax rate and the expansion of the Service Tax scope, set to take effect on July 1, 2025. The Sales Tax rate remains unchanged for essential goods, while non-essential items will be taxed at either 5 per cent or 10 per cent, subject to discretion.