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| Malaysian Institute of Accountants (MIA) |
KUALA LUMPUR, Oct 21 (Bernama) -- As the regulator and developer of the profession the Malaysian Institute of Accountants (MIA) is delighted that certain of its proposals are addressed within the measures in Budget 2025, reflecting its relevance as the voice of the profession.
MIA is a strong advocate of fiscal responsibility which is a key focus of the budget. “The Institute applauds the continuity of fiscal reform initiatives to further strengthen the Government's fiscal position towards meeting the fiscal deficit target of 3% and a debt-to-GDP ratio of 60% in the medium term, as stipulated under the Public Finance and Fiscal Responsibility Act 2023,” said President of the MIA, Dato’ Seri Dr Mohamad Zabidi Ahmad.
MIA commends the Budget’s emphasis on broadening of the tax base to support fiscal responsibility. A key measure is enhancing the Sales and Service Tax (SST) to make it more progressive starting 1 May 2025. Sales tax will not apply to basic food items but higher sales taxes will be imposed on imported premium goods. Revenue from this expansion will be used to increase cash aid for the public, ensuring broader support for low-income households.
“The above is in line with one of the proposals submitted by the Institute to the Government to broaden consumption taxes. This will curb the loss of revenue from direct taxes as part of a long-term reform of the tax system,” mentioned Dato’ Seri Dr Mohamad Zabidi.
To broaden the tax base, the Government is also focusing on taxing the wealthy by imposing a dividend tax. Beginning in 2025, individual shareholders receiving over RM100,000 in dividends will face a 2% tax on the amount exceeding this threshold. “The proposal aims to increase the Government’s revenue by targeting high-income earners. This measure seeks to balance fairness in taxation without overburdening lower income earners,” said Dato’ Seri Dr Mohamad Zabidi.
As a strong advocate for tax transparency and tax governance, the Institute welcomes the Government’s e-Invoicing measures. This includes an accelerated capital allowance for the purchase of computer equipment and software for e-invoicing, allowing claims over two years. “This initiative partially aligns with the proposal submitted by the Institute to the Government in July 2024,” said Dato’ Seri Dr Mohamad Zabidi.
As a proponent of flexible work arrangements, which has been normalised at the Institute, MIA welcomes the additional 50 percent tax deduction on the cost of capacity development and purchase of software to be incurred by employers in implementing flexible work arrangements.
As partners to businesses, accountancy professionals must be equipped with the requisite tools and knowledge to supply the necessary services to the market. MIA welcomes the proposal of HRD Corp to utilise RM3 billion to provide three million training opportunities. “This will boost the upskilling of Malaysian professionals to be future relevant for emerging economic opportunities,’’ mentioned MIA’s Chief Executive Officer Dr Wan Ahmad Rudirman Wan Razak.
Accountancy Professionals will also need to be future proof to drive the Malaysian sustainability agenda. In line with this agenda the Institute has launched the
MIA Sustainability Blueprint for the Accountancy Profession, which guides accountants to align their practices with sustainability imperatives.
“The profession is committed to supporting the Government and business community in various sustainability /ESG initiatives announced in Budget 2025,” said Dr Wan Ahmad Rudirman. He noted that the profession would be able to apply their expertise in the following areas:
· Advisory on emerging economic and business opportunities from Malaysia’s net zero agenda especially the allocation of RM300 million and Green Technology Financing Scheme (GTFS) up to RM1 billion ringgit by 2026, which will support efforts to decarbonise Malaysia’s manufacturing industries.
· Advisory on the introduction of Carbon Tax on the iron and steel industries by year 2026, which supports low carbon technology usage. The tax collection will be beneficial in sponsoring green research and development activities.
· Support for the business continuity and resilience of local suppliers involved in Sustainable Supply Chain Effort.
Dr Wan Ahmad Rudirman welcomes the Budget’s focus on digital transformation and the allocation of funds for AI adoption, cyber security, special tax incentives for technology education and SME digitalisation. The Institute has been actively advocating for technology adoption in the profession to enhance the productivity and ensure future relevance of accountancy professionals. “These key initiatives will be critical in strengthening digital transformation and upskilling of the necessary talent needed for Malaysia’s shift to higher value-added investment such as in data centres,’’ said Dr Wan Ahmad Rudirman. These initiatives include:
· Allocating RM10 million to the National AI Office (NAIO) to enhance AI usage through collaboration with academia and industry as well as expansion of AI education to all research universities with funding increased to RM50 million, an increase from this year's RM20 million.
· Curbing increasing cyber security issues with additional allocation of RM 10 million for the National Cyber Security Agency (NACSA) and a further increase of 100 personnel to fulfil the commitment to strengthen the country's cybersecurity and the enactment of the Cyber Security Act 2024. A National Fraud Portal has been launched in an effort to combat online fraud. The portal facilitates the detection of suspicious transactions automatically.
· Introduction of special tax incentives to Institut Pengajian Tinggi Swasta (IPTS) offering new courses in digital technology, Artificial Intelligence (AI), robotics, Internet of Things (IOT), FinTech and sustainable technology. This addresses talent shortage issues. Based on the report published by
MIA on technology adoption by the accounting profession in Malaysia, the lack of talent to utilise technology effectively was identified as the top barrier of technology adoption.
As an advocate for business resilience, MIA lauds the Government’s efforts to support the micro, small, and medium enterprises (MSMEs) by providing financial assistance, digitalisation grants and loans. These include:
· RM50 million allocated for the MSME Digital Matching Grant and the Digital Grant under BSN to help local entrepreneurs remain competitive in the market.
· RM100 million provided by the Malaysian Communications and Multimedia Commission (SKMM) over a period of 5 years to empower the National Information Dissemination (NADI) Centres across the country as community platforms to increase income through online entrepreneurial activities.
· RM40 billion allocated for loan facilities and loan guarantees under various Government agencies include:
- Micro loans for SMEs valued at RM3.2 billion will be provided under Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) dan Bank Simpanan Nasional (BSN) to support SMEs including Orang Kurang Upaya (OKU), Chinese and Bumiputera Communities.
- RM6.4 billion loan under Bank Pembangunan Malaysia Berhad to support sectors involved in infrastructure development, digitalisation, tourism, logistic and transportation, as well as renewable energy and transition.
- RM20 billion loan guarantees under SJPP including RM5 billion for Bumiputeras.
- SME loans valued at RM3.8 billion under BNM to support entrepreneurs towards automation and digitalisation in addition to continuingly supporting sectors involved in agrofood and sustainable practices.
- RM650 million allocated specifically to support women and youth entrepreneurs.
- To preserve human capital, social welfare, and the well-being of the Indian community, RM130 million has been allocated specifically to implement various programs, including financing for Indian community businesses.
Islamic Finance is a key area of advocacy for the Institute in line with the national agenda. The budget included 3 key measures as follows:
· A commitment of RM100 million under the MADANI Economy to advance innovation in Islamic finance. These include strategic partnerships in an effort to support the transition towards greener and more sustainable practices. MIA promotes Islamic finance through engagement and collaborations with relevant stakeholders and regional accountancy bodies to promote the adoption of global standards. MIA also collaborated with IFAC and the World Bank on a roundtable report titled
Unleashing the Potential of Islamic Finance – Global Perspective on Achieving the SDGs with Islamic Finance Tools and Concepts.
· Provision of RM10 million to support joint venture in enhancing the understanding and adoption of the universal Islamic economic values.
· 100 auditors to be increased under Jabatan Kemajuan Islam Malaysia (JAKIM) to expedite the issuance of halal certification. In line with this emphasis on governance, MIA is currently engaging in several initiatives to advocate Shariah audit including the publication of Shariah Audit White Paper and the development of a Shariah Audit Guide.
As the regulator of the profession, the Institute strongly advocates for improving public financial management systems in support of good governance and sustainability. The continuity of fiscal reform initiatives, as stipulated under the Public Finance and Fiscal Responsibility Act 2023 is aimed at providing provisions for the government’s fiscal responsibility, accountability, governance, and transparency in managing public finances and fiscal risks.
The Institute is committed to protecting the public interest and acting in accordance with the profession’s code of ethics. This will be facilitated by the Government’s steadfast commitment to transform and improve the public service delivery, through initiatives such as the National Bribery Eradication Strategy, amendments to the Audit Act 1957 and bureaucracy reform promoting accountability and transparency. In parallel with the Fiscal Responsibility Act, the Public Administration Efficiency Commitment Bill will be drafted, focusing on three major shifts: reducing bureaucracy, accelerating processes, and enhancing service efficiency.
NOTE TO EDITOR:
About the Malaysian Institute of Accountants (MIA)Established under the Accountants Act 1967, MIA is the national accountancy body that regulate, develops, supports and enhances the integrity, status and interests of the profession in Malaysia. MIA accords the Chartered Accountant Malaysia or “C.A. (M)” designation. Working closely alongside businesses, MIA connects its membership to a wide range of information resources, events, professional development and networking opportunities. Presently, there are close to 40,000 members making their strides in businesses across all industries in Malaysia and around the world.
MIA’s international involvement and connections are reflected in its membership of regional and international professional organisations such as the International Federation of Accountants (IFAC) and the ASEAN Federation of Accountants (AFA). For more information on MIA, visit
www.mia.org.my SOURCE: Malaysian Institute of Accountants (MIA)
FOR MORE INFORMATION, PLEASE CONTACT:
MIA STRATEGY COMMUNICATIONS & BRANDING
E-mail: communications@mia.org.my
Name: THANE MEYYAPPAN
Tel: +60122489534
Name: MOHD FAIZ OTHMAN
Tel: +60126225027
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