Deputy Works Minister Datuk Seri Ahmad Maslan announced that the Malaysian government will continue to support the construction sector with Sales and Services Tax (SST) exemptions for specific projects. These exemptions cover residential buildings and public facilities like houses of worship, recreational parks, and public toilets.
Additionally, essential building materials such as cement, aggregate, and sand remain zero-rated under sales tax to ease the burden on developers. For business-to-business (B2B) activities, main contractors are subject to SST, but subcontractors earning below RM1.5 million are exempt.
Companies with non-reviewable contracts will receive a one-year SST exemption, allowing time to adjust to the system. Ahmad also confirmed that there are no discussions to increase the SST registration threshold for the construction sector from RM1.5 million to RM3 million, despite industry proposals.