Call for Transitional Measures in New Tax Policy by the Malaysia Heavy Construction Equipment Owners’ Association (MHCEOA)

CALL FOR TRANSITIONAL MEASURES IN NEW TAX POLICY BY THE MALAYSIA HEAVY CONSTRUCTION EQUIPMENT OWNERS’ ASSOCIATION (MHCEOA)

by Zaaheda Farahin
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Leong Foo Yew, President of the Malaysia Heavy Construction Equipment Owners’ Association (MHCEOA), has urged the government to introduce adequate transitional measures and support mechanisms for small and medium-sized enterprises (SMEs) amid the implementation of the e-invoicing system and the revised Sales and Service Tax (SST).

Leong said that many people in the construction industry, especially small and medium businesses, are struggling with the pressure of handling both the new e-invoice system and the SST at the same time. He warned that if there’s no extra time or help given, businesses might be forced to raise their prices, which could lead to higher costs for consumers.

Speaking at MHCEOA’s 33rd anniversary luncheon on the 29th of June, where the 16th council (2025–2028) was officially sworn in, Leong emphasizes that businesses are grappling with rising labor costs, minimum wage adjustments, regulatory compliance, and administrative burden, all intensified by new tax policies.

“”Many businesses have already invested significant manpower and resources to comply with the e-invoice system, ” he said. “Now, with the additional burden of SST, they are truly overwhelmed.”

Leong warned that such rapid policy shifts may lead to instability in the construction supply chain, urging the government to consider phased implementation timelines and support frameworks to ensure a smooth transition.

He also expressed gratitude to association members for their continued trust, reaffirming his commitment to leading MHCEOA through an increasingly complex policy and business landscape. The newly appointed council, he noted, reflects the industry’s diversity, with balanced representation across gender, ethnicity, and age.

Transport Minister YB Anthony Loke officiated the anniversary event and announced a RM10,000 allocation to support the association’s activities. He also highlighted ongoing regulatory reforms aimed at enhancing safety and reducing compliance burdens. Among them is a revised inspection regime, under which new cranes require only one annual inspection during their first five years of operation.

“To ease the burden on businesses, the government has relaxed regulations, requiring new cranes to undergo only one annual inspection in their first five years of operation. Authorities are also actively gathering industry feedback to explore subsidy and incentive mechanisms,” Minister Loke said, encouraging the adoption of newer, safer machinery to improve workplace safety standards.

YB Tuan Lee Chean Chung, Member of Parliament for Petaling Jaya, also pledged a RM5,000 grant to support MHCEOA’s initiatives.

As part of its corporate social responsibility efforts, MHCEOA announced contributions totaling RM13,850 to Sheng De Chinese Primary School in Kuala Lumpur and Sungai Buloh Chinese Primary School in Selangor to support school facility upgrades.

For more information, visit https://pajpbm.com/. 

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