Month: June 2025

How a Transfer Listing Can Elevate Your Company’s Market Standing

How a Transfer Listing Can Elevate Your Company’s Market Standing

How a Transfer Listing Can Elevate Your Company’s Market Standing

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Table of contents

  1. What Is Uplisting?
  2. What Does a Transfer Listing Involve?
  3. Key Benefits of Transfer of Listing for Companies
  4. Strategic Considerations Before a Transfer Listing
  5. Common Challenges of a Transfer Listing and How to Overcome Them
  6. Real-World Impact of a Successful Transfer Listing
  7. Navigate Your Uplisting Journey with Confidence

 

In Malaysia’s dynamic capital markets, companies often reach an inflexion point — a phase where strategic expansion, greater investor access, or stronger market visibility becomes essential to continued growth. One proven pathway is a transfer of listing, commonly known as an uplistingin the financial and investment circles, where companies migrate from alternative boards such as the ACE or LEAP Markets to the Main Market of Bursa Malaysia.

This move is not merely symbolic. For many growth-stage or mid-cap companies, uplisting offers the chance to reposition as stable, investor-ready entities with robust governance and long-term potential. As the regulatory framework evolves to support such transitions, understanding the true value of a transfer listing has never been more important for corporate leaders.

What Is Uplisting?

Uplisting refers to the process of moving a company’s stock from a junior or alternative exchange board, such as the ACE Market or LEAP Market, to a more regulated and prestigious platform, namely the Main Market. In Malaysia, these listing boards differ in terms of financial performance requirements, public shareholding spread, governance expectations, and investor accessibility.

The LEAP Market is tailored for micro and small enterprises with fewer compliance obligations and a limited investor audience (primarily sophisticated investors).

The ACE Market, by contrast, caters to growth-stage companies with broader investor access and moderately stricter requirements.

The Main Market caters to mature businesses with strong financial track records, robust governance practices, and the capacity to meet more stringent regulatory standards. A successful transfer listing to this board signals a company’s ability to operate at a higher level of public market scrutiny and often signals its ambitions for national or regional expansion.

What Does a Transfer Listing Involve?

A transfer listing entails a comprehensive review of the company’s financial position, corporate governance, internal controls, and operational readiness. Bursa Malaysia assesses applicants based on profitability track records, shareholder thresholds, and compliance history.

Enhancements to the listing framework introduced in 2023 have made streamlined the transfer listing process, especially for transfers from the ACE Market to the Main Market. These updates have reduced procedural duplication and accelerated access to the Main Market’s benefits, such as increased visibility, broader investor reach and wider access to capital.

Key Benefits of Transfer of Listing for Companies

Choosing to pursue a transfer of listing isn’t simply about prestige; it delivers tangible, long-term strategic benefits that can enhance a company’s growth and sustainability.

Here are some of the key advantages:

Enhanced Visibility and Credibility

Listing on the Main Market elevates a company’s profile significantly. The Main Market is closely monitored by analysts, institutional investors, and the media, offering companies a platform to gain broader recognition. This increased visibility strengthens the company’s corporate image and builds greater trust among stakeholders.

Greater Liquidity and Shareholder Base

A transfer listing opens the door to a larger and more diverse investor pool, including retail investors, institutions, and foreign participants. This typically results in higher trading volumes and improved share price stability and increased investor confidence, making it easier for existing shareholders to realise value and for new investors to come on board.

Better Access to Capital Markets

With enhanced investor confidence, transparency and credibility, companies in the Main Market often find it easier to raise funds through private placements, rights issues, or bond offerings. This improved access to capital enables strategic investments, supports expansion plans, and strengthens the company’s overall financial resilience.

Improved Corporate Governance and Transparency

Transfer listings to the Main Market requires compliance with stricter disclosure and governance standards, pushing companies to improve board composition and independence, risk management frameworks, and financial reporting. These enhancements not only meet regulatory standards, but also foster long-term organisational trust and accountability.

Increased Attractiveness to Institutional Investors

Institutional funds — both local and international — often have mandates that restrict investments to Main Market companies due to liquidity and governance criteria. A successful transfer listing to the Main Market, therefore, expands the company’s investor base to include a wider range of funding sources and strategic investors who can support its growth and expansion efforts.

Transfer Listing

Strategic Considerations Before a Transfer Listing

Before committing to a transfer listing, companies must carefully evaluate their current capabilities and level of readiness. This involves meeting regulatory thresholds and implementing internal transformation to align with Main Market expectations.

Regulatory and Financial Requirements

To qualify for the Main Market, a company must meet Bursa Malaysia’s listing requirements, which include profitability benchmarks, adequate public shareholding spread, and audited financial track records. Any gaps must be identified and addressed early in the planning phase to avoid delays or potential rejection.

Governance and Operational Readiness

Beyond financial metrics, companies must demonstrate strong internal governance which includes robust internal controls, an independent and effective board structure, and formalised policies to manage risks and disclosures. These elements reflect the governance maturity required for the company to operate under the scrutiny that comes with a Main Market listing.

Common Challenges of a Transfer Listing and How to Overcome Them

Even well-prepared companies can face roadblocks during the transfer listing process. Anticipating these challenges early on can help pave the way for a smooth and successful transition.

Navigating Regulatory Complexities

The application process involves coordination among multiple stakeholders: legal advisers, financial consultants, auditors, and regulators. Aligning documentation and meeting disclosure requirements can be resource-intensive without guidance from experienced advisors.

Managing Stakeholder Expectations

Transitioning to the Main Market can lead to scrutiny from internal and external stakeholders. From employees to investors, it is essential to manage expectations through consistent, proactive communication and transparency throughout the transfer listing journey.

Leveraging Professional Support

Engaging an experienced corporate services provider can significantly ease the burden of the transfer listing process. From conducting due diligence to liaising with regulators and ensuring post-listing compliance, professional guidance can help streamline the transfer listing journey and reduce risk.

Real-World Impact of a Successful Transfer Listing

What tangible outcomes can companies expect after a transfer listing?

Apart from achieving its strategic objectives, several positive outcomes are commonly observed:

Stronger Valuation and Re-Rating Opportunities

Companies that transition to the Main Market often experience upward re-rating on their stock valuation, driven by increased analyst coverage and investor demand.

Greater Investor Confidence and Participation

A listing on the Main Market is viewed as a mark of corporate maturity and governance. This fosters higher investor trust, resulting in stronger trading volumes and sustained long-term participation.

Increased Access to International Markets

With improved credibility, companies may find it easier to establish partnerships, attract cross-border investments, or even consider dual listings (secondary listings) in other global financial exchanges.

Enhanced Brand Reputation Within the Industry

Being a Main Market-listed company raises the company’s standing not only among investors but also within its sector, offering competitive advantages in attracting new clients and partnerships.

Improved Employee Morale and Talent Acquisition

Being a Main Market-listed company is a powerful symbol of achievement, growth and stability, which can help attract top-tier talent and improve morale among existing employees.

A successful transfer listing is more than a compliance milestone; it’s a strategic transformation in how a company operates, presents itself, and competes in the marketplace. From enhanced investor trust to operational maturity, the impact of a transfer listing extends well beyond listing day. It lays the foundation for sustainable growth and broader opportunities in Malaysia’s capital market.

To navigate this journey successfully, it is important to work with experts who understand the nuances of governance, regulatory compliance, and market readiness. At BoardRoom Malaysia, we guide companies through every phase of the IPO application and share registration process and into their post-listing journey. Whether you’re taking early steps or preparing to leap to the Main Market, our team is ready to help unlock your company’s full potential.

Read about the regional IPOs we’ve supported and see how we’ve helped companies achieve successful market debuts.

Ready to go public or transfer a listing on Bursa Malaysia? Contact us today to start your journey with confidence.

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Tips for Hybrid Meetings: Prepare for the New AGM Rules in Malaysia

Tips for Hybrid Meetings_ Prepare for the New AGM Rules in Malaysia

Tips for Hybrid Meetings: Prepare for the New AGM Rules in Malaysia

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Starting 1 March 2025, companies in Malaysia will no longer be permitted to hold fully virtual Annual General Meetings (AGMs). Under the new guidelines issued by Bursa Malaysia, all listed companies must provide a physical venue for shareholders, even if they also allow online participation.

Although this may seem like an added responsibility, it’s also a chance to host more engaging and accessible meetings. Hybrid AGMs, which combine physical and virtual attendance, can help you comply with the updated rules while offering shareholders the convenience of joining from anywhere.

In this article, we will explain the key regulatory changes, highlight the advantages of hybrid AGMs, and share practical tips to help you adapt smoothly. We will also introduce BoardRoom’s new fixed-location hybrid meeting venue, a cost-effective solution to simplify your AGM planning.

What Is Changing for AGMs in Malaysia?

Under Bursa Malaysia’s revised Listing Requirements, all public-listed companies (PLCs) must host AGMs at a physical venue starting from 1 March 2025. This means fully virtual AGMs will no longer be allowed.

The aim is to promote greater transparency and inclusivity by allowing shareholders to attend in person, while addressing technological barriers through hybrid setups that maintain online access.

To meet these requirements, companies will need to:

  • Book a physical location for their AGM.
  • Ensure that the quorum requirements are met with attendees present on-site.
  • Provide seamless connectivity and clear communication for virtual participants.
  • Enable secure live voting and interactive Q&A functions for both physical and online attendees to ensure equitable participation.

With the right support and tools, a hybrid meeting can help you manage all these tasks effectively, ensuring a smooth experience for your team and your shareholders.

Why Choose a Hybrid AGM?

A hybrid AGM combines the best of both worlds — a physical venue for in-person participation, along with virtual tools that allow remote shareholders to join, vote and engage online while meeting Bursa Malaysia’s requirements.

Key Advantages of Hybrid Meetings:

Flexibility for Shareholders

Not everyone can attend meetings in person due to travel, work, or health reasons. A hybrid format ensures all shareholders have the chance to join and vote.

Wider Participation

Hybrid meetings typically see higher attendance, especially from shareholders who are based overseas or in different time zones, expanding participation for PLCs.

Stronger Engagement

With features like live Q&A, online polling and digital hand-raising, shareholders feel equally involved and engaged, even though they are not attending in-person.

Better Records and Reporting

Digital tools allow for easy recording, attendance tracking and automated reporting. This helps companies save time, reduce errors and enhance transparency.

Compliance with Confidence

A well-run hybrid meeting ensures you meet Bursa Malaysia’s rules without sacrificing convenience or shareholder satisfaction.

To get the most from a hybrid AGM, it is important to plan ahead, secure a suitable venue and invest in reliable technology to ensure a seamless experience.

Hybrid AGM

Hybrid Meeting Tips for a successful AGM

Here are some straightforward tips to help you run a successful and compliant hybrid Annual General Meeting:

Secure a Suitable Venue

Choose an accessible venue that has proper facilities to support both in-person and online participation. The venue should have strong internet, ample space for AV setup, and comfortable seating for shareholders.

Test Your Technology Early

Ensure that your cameras, microphones, internet connection, broadcasting software and e-voting platform are tested well in advance. A trial run can help identify issues early and avoid last-minute hiccups.

Have On-Site Technical Support

Always have an experienced tech team available onsite on the day of the meeting. They can manage equipment setup, troubleshoot problems, and support online features like e-voting and online Q&A submissions for a seamless AGM experience.

Communicate the Details

Send out AGM invitations early and explain clearly how to join in-person or online. Provide instructions, log-in details and any necessary links for voting or accessing the live stream.

Ensure Real-Time Interaction

Shareholders should be able to ask questions, respond to polls and vote in real-time. Use a digital platform that supports secure voting and two-way communication. Appoint an independent scrutineer to validate votes.

Train Your Presenters

Whether your speakers are joining online or speaking at the venue, make sure they understand how the hybrid setup works. Offer a briefing on how to use the microphone, camera and presentation tools.

Keep a Backup Plan Ready

Always have a contingency plan in case of technical issues. For example, have backup internet access or an alternative livestream link to ensure continuity and compliance.

Introducing BoardRoom Malaysia’s Hybrid-Ready AGM Suite

To help companies adapt to the new AGM requirements, BoardRoom Malaysia has partnered with a trusted provider to launch a new fixed-location hybrid meeting venue. This service is designed to help you hold a professional, compliant, and stress-free AGM without needing to manage every detail yourself.

What the Venue Offers:

  • Prime Location: Conveniently located with easy public transport access such as LRT, and ample parking.
  • State-of-the-Art Technology: Stable high-speed internet, live streaming setup, interactive display, real-time voting systems and tech tools to ensure your AGM run without a hicth.
  • On-Site Expert Support: A dedicated team of meeting managers and IT professionals to handle everything, from logistics to troubleshooting, so you can focus on your presentation.
  • Cost-Effective Packages: Affordable and flexible packages tailored to suit your needs, whether you expect a small turnout or a larger audience.

BoardRoom’s Share Registry Services (SRS) team can support every part of your AGM process, from preparing your Notice of Meeting and managing proxies to ensuring accurate vote tabulation.

Learn more about our Share Registry Services and how we can help with your next AGM.

Why Work with BoardRoom?

With decades of experience supporting listed companies across Asia, BoardRoom Malaysia is trusted for delivering secure and compliant meeting services.

When you choose our Hybrid-Ready AGM Suite solution, you are getting:

  • A fully equipped, compliant meeting space
  • End-to-end AGM support from our SRS professionals
  • Peace of mind knowing your AGM is in expert hands

Let us take care of the venue, the tech and the admin so you can focus on engaging with your shareholders and delivering results.

Your Next AGM Strategy Starts Here

The move away from fully virtual AGMs may feel like a big shift, but it presents a great opportunity to improve how you connect with your shareholders. With the right planning and support, hybrid meetings can be both compliant, cost-efficient and highly effective.

By following these simple tips, you can run hybrid meetings that are professional, smooth and inclusive for everyone, whether they attend in-person or online.

Contact our team today to learn more or request a custom quote.

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MBRS 2.0 Benefits Every Malaysian Business Should Know

MBRS 2.0 Benefits Every Malaysian Business Should Know

MBRS 2.0 Benefits Every Malaysian Business Should Know

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As Malaysian businesses advance in digital transformation, regulatory compliance is also evolving. The introduction of Malaysian Business Reporting System (MBRS) 2.0 is a significant step towards streamlining the filing of corporate documents, XBRL conversion, and simplifying annual reporting requirements, making MBRS compliance more efficient and transparent.

In this article, we’ll explore the key MBRS 2.0 benefits and how businesses can prepare for a smooth transition. Understanding these advantages will help companies adapt to the system efficiently and remain compliant with regulatory requirements.

What is MBRS 2.0?

MBRS is an online submission platform introduced by the Companies Commission of Malaysia (SSM) in 2018 for corporate filing and reporting. Released in September 2024, MBRS 2.0 is an enhanced version designed to improve efficiency, accuracy, and accessibility for businesses. It also introduces structured digital submissions through XBRL conversion, a key feature that standardises financial data across all filings.

The upgraded system introduces better automation, standardisation, and integration with digital reporting tools. These improvements help reduce errors, cut down on paperwork, and speed up the submission process for XBRL-compliant financial statements, annual returns, and exemption applications.

MBRS 2.0 Rollout Timeline for Businesses

The transition to MBRS 2.0 is being implemented in three phases, with different filing requirements becoming mandatory at each stage. Businesses must ensure they comply with the relevant deadlines to avoid penalties.

Phase Effective Date Filing Requirements
Phase 1 1 December 2024 Annual returns and unaudited financial statements (UFS) under CA 2016, exemption applications, and rectifications.
Phase 2 1 March 2025 Annual returns and audited financial statements (AFS) under CA 1965, AFS for financial institutions under CA 1965 and CA 2016, and foreign company filings.
Phase 3 1 June 2025 Audited financial statements under CA 2016, including all exemption applications and rectifications.

As MBRS 2.0 transitions through each phase, the use of XBRL conversion tools will be essential for businesses to meet submission requirements in the prescribed format. Companies should engage their finance and compliance teams early to prepare for the transition and stay updated on any additional guidelines from SSM Malaysia.

Annual reporting compliance

The Key MBRS 2.0 Benefits for Malaysian Businesses

MBRS 2.0 introduces several advantages that enhance compliance and reporting for companies in Malaysia. These improvements help businesses operate more efficiently while meeting regulatory requirements with ease.

Streamlined MBRS Compliance and Reporting

MBRS 2.0 eliminates manual paperwork, making it easier to submit corporate filings online. This standardised approach ensures that businesses can meet compliance requirements efficiently while lowering the risk of errors.

Reduced Costs and Time Efficiency

By automating the reporting process, businesses can cut down on administrative costs and lessen the time spent on manual data entry. Faster submissions mean companies can allocate resources more effectively.

Better Data Accuracy and Transparency

The MBRS system enhances data integrity by minimising human errors and establishing consistency in financial reporting. This increased transparency benefits not just businesses but also regulators and stakeholders.

Enhanced Accessibility and Convenience

With MBRS 2.0, businesses can file reports from anywhere with an internet connection. This remote accessibility simplifies compliance, particularly for companies with multiple locations or remote teams.

Improved Regulatory Oversight and Fraud Prevention

A structured and automated reporting system helps regulatory authorities detect discrepancies and non-compliance more effectively. This reduces opportunities for fraud and strengthens corporate governance.

Future-Proofing Businesses for Digital Transformation

MBRS 2.0 aligns with Malaysia’s broader digitalisation initiatives, ensuring that businesses remain competitive in an increasingly technology-driven landscape. The system integrates well with modern accounting and compliance tools, making it easier for businesses to stay up-to-date.

Sustainability and Environmental Benefits

By shifting to digital filings, MBRS 2.0 significantly eases the reliance on paper-based processes. This move supports corporate sustainability efforts and helps businesses reduce their carbon footprint.

How Malaysian Businesses Can Prepare for MBRS 2.0

Adapting to MBRS 2.0 requires businesses to take proactive steps to guarantee a smooth transition. From understanding new regulations to upgrading internal processes and training of staff, preparation is key to maintaining compliance.

Understand the New Compliance Requirements

Companies should familiarise themselves with MBRS 2.0 guidelines to confirm they meet the latest regulatory standards. Staying informed will prevent non-compliance issues and penalties.

Upgrade Internal Systems and Processes

Businesses should evaluate their existing accounting and reporting systems to verify compatibility with MBRS 2.0XBRL conversion requirements. Investing in updated software solutions can streamline the transition.

Train Teams and Key Personnel

Employees handling compliance and financial reporting should undergo training to understand how MBRS 2.0 works. SSM and other regulatory bodies often provide resources to facilitate this learning process.

Leverage Digital Tools for Seamless Transition

Adopting automation tools and AI-driven compliance solutions can help businesses file reports more efficiently. These tools can reduce errors and improve reporting accuracy.

Stay Updated on Regulatory Announcements

Since MBRS 2.0 is being rolled out in phases, businesses should monitor updates from SSM to stay compliant with any new requirements or deadlines.

Partner with a Trusted Corporate Service Provider

Navigating new compliance requirements can be challenging. Engaging a professional MBRS Filing & XBRL Conversion service provider like BoardRoom Malaysia can help businesses transition smoothly to MBRS 2.0. Our expertise in regulatory compliance ensures that companies meet all filing obligations efficiently and accurately.

Making MBRS 2.0 Work for Your Business

The transition to MBRS 2.0 represents a significant shift in how Malaysian businesses handle corporate compliance. With its many benefits, including streamlined reporting, improved accuracy, and cost efficiency, this digital transformation is a step forward for businesses of all sizes.

If your company is seeking expert guidance on MBRS 2.0, look no further than BoardRoom Malaysia. We offer comprehensive corporate compliance services to help businesses like yours navigate the transition with ease.

Contact us today to ensure your business stays ahead in an evolving regulatory landscape.

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Johor-Singapore SEZ: A New Era of Incorporation & Tax Incentives for Businesses

Johor-Singapore SEZ A New Era of Incorporation & Tax Incentives for Businesses

Johor-Singapore SEZ: A New Era of Incorporation & Tax Incentives for Businesses

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Table of Content

  1. What Is the Johor-Singapore SEZ (JS-SEZ)?
  2. Why Incorporate in the Johor-Singapore SEZ?
  3. Unlocking Tax Incentives in the Johor-Singapore SEZ
  4. Which Sectors Benefit Most?
  5. Economic Impact & Forward Outlook
  6. Why Act Now? 

On 7 January 2025, Malaysia and Singapore marked a historic milestone with the formal launch of the Johor-Singapore Special Economic Zone (JS-SEZ), a bold step forward in regional economic collaboration. More than just a bilateral agreement, the Johor-Singapore SEZ represents a platform for cross-border synergy, sustainable development, and high-value investments. For companies eyeing expansion in Southeast Asia, the Johor-Singapore SEZ presents a compelling proposition – attractive tax incentives and schemes that that lower the cost of entry, accelerate operational setup, and create long-term advantages for cross-border businesses.

In this article, we explore how the JS-SEZ initiative could help transform your business.

What Is the Johor-Singapore SEZ (JS-SEZ)?

The Johor-Singapore SEZ is a strategic cross-border initiative that combines the strengths of both Johor and Singapore. It facilitates the smoother flow of goods, services, investments, and people between the two regions and aims to emerge as a key engine of Southeast Asia’s economic future.

The Special Economic Zone covers nine flagship development zones, including well-established powerhouses like Iskandar Malaysia and the Pengerang Integrated Petroleum Complex. Each area is designated for strategic industries such as clean energy, digital innovation, advanced manufacturing, and tourism.

According to the Malaysian Investment Development Authority (MIDA), these are the nine Special Economic Zones in JS-SEZ and their focus areas:

  • Johor Bahru City Centre: Business services, digital economy, health
  • Forest City Special Financial Zone: Financial services, sustainable urban development
  • Iskandar Puteri: Manufacturing, business services, digital economy, education, health, tourism
  • Tanjung Pelepas–Tanjung Bin: Manufacturing, energy, logistics
  • Pasir Gudang: Manufacturing, energy, logistics
  • Senai–Skudai: Manufacturing, digital economy, education, logistics, tourism
  • Sedenak: Manufacturing, business services, digital economy, education, energy, food security, health, logistics, tourism
  • Pengerang Integrated Petroleum Complex (PIPC): Manufacturing, energy, logistics, petrochemicals
  • Desaru: Education, food security, health, tourism

Why Incorporate in the Johor-Singapore SEZ?

To fully access the tax incentives, regulatory support, and strategic advantages offered under the Johor-Singapore SEZ framework, businesses must incorporate or register a legal presence in Malaysia. While the SEZ is designed to enhances bilateral cooperation, most government-administered incentives including reduced corporate tax rates and investment allowances are specifically tied to incorporation and operations within the designated Malaysian zones.

Incorporating within the JS-SEZ positions your business to unlock a wide range of government-backed benefits, tailored to accelerate business growth.

These include:

Streamlined Incorporation Process

The JS-SEZ initiative simplifies and accelerates the incorporation journey in alignment with Malaysia’s broader push for a pro-business ecosystem. Startups and multinational companies alike can establish operations quickly and gain faster access to key regional markets and capitalise on first-movers advantages.

Need expert assistance with your company setup? Discover our incorporation services designed for end-to-end support.

Strategic Cross-Border Location

Incorporated businesses in the Johor-Singapore SEZ enjoy proximity to Singapore’s global trade and finance hub while benefiting from Johor’s lower cost base, extensive infrastructure, and access to a growing talent pool. This unique positioning enables companies to optimise both operational efficiency and regional market access which are ideal for ASEAN expansion.

Unlocking Tax Incentives in the Johor-Singapore SEZ

One of the most compelling reasons to consider incorporation in the Johor-Singapore SEZ is the strong set of tax incentives rolled out by the Ministry of Finance and Johor State Government, administered by the Malaysian Investment Development Authority (MIDA).

Here’s a breakdown of the tax incentives available to eligible businesses:

Corporate Income Tax (CIT)

Businesses operating within qualifying sectors of the SEZ may enjoy a reduced corporate tax rate as low as 5% for up to 15 years, compared to Malaysia’s standard corporate tax rate of 24%.

Investment Tax Allowance (ITA)

Companies in targeted industries can benefit from up to 100% Investment Tax Allowance on qualifying capital expenditure, encouraging reinvestment and business expansion within the Johor-Singapore SEZ.

Knowledge Worker Tax Relief

To attract high-value talent, the SEZ offers a flat tax rate of 15% on employment income for knowledge workers, applicable for up to 10 years.

Stamp Duty Exemptions & Sponsorship Deductions

Eligible companies can receive up to 40% exemptions on stamp duty for commercial property transfers. Companies can also claim tax deductions of up to RM1 million for sponsoring major business events.

Renovation Incentives

Qualifying renovation costs are eligible for Accelerated Capital Allowance (ACA) of up to 60%, making it more cost-effective for businesses to modernise their workspaces within the Johor-Singapore SEZ.

Qualifying renovation costs are eligible for Accelerated Capital Allowance (ACA) of up to 60%, making it more cost-effective for businesses to modernise their workspaces within the Johor-Singapore SEZ.

Which Sectors Benefit Most?

The SEZ’s tax incentives are tailor-made for key growth sectors, including:

  • Global Business Services (GBS)
  • Smart Logistics & Supply Chain Management
  • Aerospace & Specialty Chemicals
  • Artificial Intelligence & Medical Technology
  • Tourism, Hospitality & Retail
  • Green Energy & Sustainable Infrastructure

Whether you operate in high-tech industries or tourism sector, the Johor-Singapore SEZ offers targeted tax incentives to help your business scale more efficiently and competitively.

High-tech industries

Economic Impact & Forward Outlook

The JS-SEZ is projected to generate 20,000 high-skilled jobs and execute over 100 high-impact projects within the next decade. This ambitious plan positions Johor on the map as a premier investment destination, while allowing Singapore-based firms to benefit from regional expansion at a lower cost base.

Initiatives such as passport-free clearance trials and upgraded customs protocols complement these efforts, further reinforcing the SEZ’s commitment to ease of doing business.

Why Act Now?

Applications for tax incentives under the Johor-Singapore SEZ are open from 1 January 2025 until 31 December 2034. With growing investor interest and a limited window for early movers, businesses that act now are better positioned to secure first-mover advantages and unlock the full range of SEZ tax incentives.

How BoardRoom Malaysia Can Help

At BoardRoom, we specialise in helping businesses navigate the complexities of incorporation, corporate governance, and regional tax incentive programmes. With our deep understanding of the Johor-Singapore SEZ environment, we provide end-to-end support, from entity structuring to tax incentives application and long-term compliance.

Ready to expand into the Johor-Singapore SEZ? Contact us to learn more about our tailored Company Incorporation Services and how your business can benefit from this game-changing opportunity.

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Malaysia’s Expanded Sales and Services Tax (SST) takes effect on 1 July 2025

Malaysia’s Expanded Sales and Services Tax (SST) takes effect on 1 July 2025

Malaysia’s Expanded Sales and Services Tax (SST) takes effect on 1 July 2025

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As Malaysia gears up for a significant shift in its tax landscape, businesses and consumers need to prepare for the expanded Sales and Service Tax (SST) set to take effect on 1 July 2025. Announced in Budget 2025 on 18 October 2024, this expansion marks a pivotal move to strengthen Malaysia’s fiscal framework under the MADANI Government, ensuring sustainable revenue to fund essential public services. With new goods and services now taxable, the changes will impact businesses in their pricing, compliance, and operations across multiple sectors.

In this article, we break down the key changes, affected sectors, exemptions, and practical steps for businesses to meet your compliance obligations. Whether you’re a business owner, financial professional or consumer, our tax professionals at BoardRoom are here to equip you with the insights and guidance needed to adapt seamlessly to the new SST framework.

Overview of Malaysia’s SST System

Malaysia’s Sales and Service Tax (SST) is a single-stage tax system designed to generate revenue while keeping essential goods and services affordable. It comprises two components: Sales Tax, applied to manufactured or imported goods, and Service Tax, levied on specific services provided in Malaysia.

The SST system, reintroduced in 2018 to replace the Goods and Services Tax (GST), was designed to simplify taxation and reduce costs of living. As of March 2024, Sales Tax rates stand at 5% or 10%, depending on the type of goods, while Service Tax rates are 6% or 8% for designated services, applied to businesses with annual revenue exceeding RM500,000 (or RM1.5 million for food and beverage services).

This 2025 expansion, effective 1 July 2025, broadens its scope to include non-essential goods and additional service sectors, with the aim to boost revenue while keeping essentials tax-free. In the next sections, we take a look at the changes and how companies should prepare themselves for the changes.

Key Changes in the Expanded SST Effective 1 July 2025

Below are the key changes in the expanded scope of SST. Please note that the list of items are not exhaustive, and varying registration thresholds apply to the taxable services.

Sales Tax
  1. Basic consumer goods are exempted from sales tax:
    • Essential goods such as chicken, fish, lamb, vegetables, local fruits, rice, milk, cooking oil, medicine etc.
    • Basic construction materials.
    • Agricultural items (e.g. fertilisers) and equipment.
  2. Non-essential goods are now taxable at 5%:
    • King crabs, salmon, imported fruits, silk and industry machinery.
  3. Premium goods are now taxable at 10%:
    • Goods such as racing bicycles and antique artworks.
Service Tax
  1. Rental or leasing services taxable at 8%
    • Applies to all service providers whose rental or lease incomes exceeds RM500,000 in a 12-month period.
    • Exemptions:
      • Residential buildings, reading materials, financial leasing and tangible assets outside Malaysia.
      • MSMEs tenants with annual revenue under RM500,000.
      • B2B and Group Relief to avoid tax cascading.
      • 12-month exemption from effective date for non-reviewable contracts.
  2. Construction services taxable at 6%
    • Applies to all services providers whose value of taxable services exceeds RM1.5 million in a 12-month period.
    • Exemptions:
      • Residential buildings and public facilities related to residential buildings.
      • B2B and Group Relief to avoid tax cascading.
      • 12-month exemption from effective date for non-reviewable contracts.
  3. Financial Services taxable at 8%
    • Applies to fee or commission-based financial services.
    • Exemptions:
      • Basic services for Malaysians e.g. basic banking.
      • Foreign exchange gains, capital market deals, penalty fees, outward remittances, export-related financing.
      • Inbound transfer charges to foreign remittance agents.
      • Brokerage/underwriting for life, medical and family insurance or takaful.
      • B2B transactions, shariah-compliant fees and services for Bursa Malaysia or Labuan.
  4. Private healthcare services taxable at 6%
    • Applies to private healthcare, traditional and complementary practices and allied health services for foreigners.
    • For value of taxable service that exceeds RM1.5 million in a 12-month period.
  5. Education services taxable at 6%
    • Applies to private preschools, primary and secondary schools.
    • If annual tuition fees exceed RM60,000 per student.
    • For private higher education for international students.
    • Exemptions:
      • Malaysian students with disabilities.
      • Malaysian students in private higher education.
  6. Beauty services taxable at 8%
    • Applies to services like facial treatment and hairdressing.
    • For value of taxable service that exceeds RM500,000 in a 12-months period.
Service Sales Tax (SST)

Implementation Timeline

The new regulations will take effect on 1 July 2025, with a grace period extending to 31 December 2025, during which no prosecution or penalties will be enforced. This allows businesses sufficient time to adapt to the changes.

Impact of Expanded Scope of SST on Businesses

The expanded scope of the Service Sales Tax (SST) introduces significant changes for businesses in newly taxable sectors, requiring them to adapt to new compliance and pricing demands.

Below are some key impact:

  • Businesses in newly taxable sectors, such as private education and beauty services, must assess their Service Tax registration obligations and ensure compliance.
  • Companies with an annual turnover exceeding RM500,000 (or RM1.5 million for food and beverage services) are required to register for SST.
  • Businesses may need to make adjustments to their pricing strategies to accommodate the tax increases, particularly for non-essential goods and services.

Action Steps for Businesses

To comply with the expanded Service Sales Tax (SST) regulations, businesses must take proactive steps to ensure adherence to compliance requirements.

The following outlines the key actions:

Register for Service Tax

Businesses with annual revenue exceeding RM500,000 (or RM1.5 million for construction and food & beverage sectors) must register via the MySST portal, with separate registrations for Sales Tax and Service Tax. After submitting the registration, companies can check their registration status on the same portal.

File Bimonthly Returns

Businesses must file their SST returns bimonthly, by submitting SST-02 forms through the MySST portal by the last day of the month following the taxable period.

Penalties may be imposed for offenses such as failing to pay the correct net tax amount, not submitting an SST return, submitting an SST return with no payment or underpayment, or failing to register for SST.

Late Payment Penalty:

  • 10% of the amount not paid after the last date of the first 30 days period.
  • 15% of the amount not paid after the last date of the second 30 days period.
  • 15% of the amount not paid after the last date of the third 30 days period.

Seek Professional Guidance

Consult a tax professional to navigate SST obligations and exemptions, ensure compliance, and address specific business needs related to SST regulations.

Businesses should maintain accurate records for seven years, as mandated by the Royal Malaysian Customs Department (RMCD).

How can BoardRoom Support your Business?

Navigating Malaysia’s expanded SST can be complex, but BoardRoom is here to simplify the process. With over 50 years as Asia-Pacific’s leading corporate services provider, BoardRoom offers an integrated suite of services from Tax and Accounting to Payroll, Employee Share Schemes, Corporate Secretarial, Share Registry, IPO and Sustainability services. Our team of tax specialists helps businesses seamlessly adapt to new SST regulations, ensuring compliance while minimising operational disruptions. From handling registrations to tax compliance and strategic tax planning, we tailor our solutions to your unique needs.

Unsure if you’re ready for the new SST rules? Contact us for a consultation today!

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