KUALA LUMPUR — The Malaysian International Chamber of Commerce and Industry (MICCI) has called on the government to use the upcoming Budget 2027 as an opportunity to lower business costs and reduce uncertainty for companies operating in the country. MICCI president Christina Tee highlighted that while predictable costs can be planned for, uncertainty remains a significant challenge for businesses.

In a statement, Tee pointed out that companies are currently facing increasing expenses related to compliance, utilities, and general operations, alongside tighter cash flow conditions. These pressures have been exacerbated by the expanded scope of the sales and service tax (SST), which MICCI warns could lead to more complex compliance requirements and ripple effects throughout supply chains.

To address these issues, MICCI urged the government to establish clear timelines for decision-making processes, provide transparent explanations for policy changes, and ensure the prompt settlement of outstanding financial obligations. According to the chamber, these measures would form the foundation of an efficient and stable business environment, with Budget 2027 serving as the platform to implement them as practical and measurable standards.

Additionally, MICCI recommended that policymakers consider reinstating the goods and services tax (GST) as an alternative tax mechanism. The chamber suggested that the GST could potentially simplify tax compliance and reduce the complexities currently associated with the expanded SST framework.

The chamber’s appeal reflects broader concerns within the business community about operating conditions in Malaysia amid evolving tax regulations and economic pressures. By prioritizing cost reduction and minimizing uncertainty, MICCI aims to foster an environment conducive to sustained business growth and investment. The government has yet to respond to these proposals as it finalizes the budget for release later this year.