Malaysia Heavy Construction Equipment Owners’ Association (MHCEOA): New Tax Policy must have a transition mechanism.

 

Leong Foo Yew, President of the Malaysia Heavy Construction Equipment Owners Association (MHCEOA), has called on the government to provide reasonable buffer periods and support measures for small and medium enterprises (SMEs) during the implementation of the e-invoice system and the Sales and Service Tax (SST).

This appeal aims to alleviate the dual operational pressures faced by businesses and prevent inflationary effects in the construction sector from being passed on to consumers.

The MHCEOA recently held a luncheon to celebrate its 33rd anniversary, during which the 16th term (2025–2028) council members were sworn in. In his speech, Leong highlighted that the industry is currently grappling with administrative and financial challenges due to the simultaneous rollout of e-invoicing and SST.

He noted that these additional compliance burdens come at a time when SMEs are already struggling with rising labor costs, wage pressures, and regulatory expenses—pushing many into even more severe operational difficulties.

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

He further emphasized that companies are simultaneously grappling with rising minimum wages, employment contract stamp duties, and regulatory pressures—all of which have severely squeezed profit margins, leaving SMEs in an increasingly precarious position.

Leong warned that such conditions would force industry players to pass on cost pressures throughout the construction supply chain, ultimately impacting end consumers.

"Policies are being rolled out in rapid succession, leaving businesses unprepared," he stressed. He urged the government to consider the actual capacity of the industry when implementing tax reforms and to provide a reasonable transition period to ensure the stability of the supply chain.

Additionally, he expressed gratitude to the members and the council for their trust in re-electing him as president, pledging to continue steering the association steadily forward. He also introduced the newly elected council, which includes diverse representation across ethnicities, genders, and age groups—combining experience with fresh perspectives, fully reflecting the industry's inclusivity and diversity.

Transport Minister Anthony Loke was invited to attend the anniversary celebration and officiate the opening of the 2025 Heavy Machinery Exhibition. During his speech, he announced an allocation of RM10,000 to support the association. He emphasized the importance of industry safety, urging operators to reduce reliance on old and refurbished machinery in favor of newer models equipped with advanced safety systems to enhance overall safety standards.

"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," he said. "Authorities are also actively gathering industry feedback to explore subsidy and incentive mechanisms."

Pealing Jaya MP YB Tuan Lee Chean Chung also announced a grant of RM5,000 to support the association. In addition, the association also fulfilled its corporate social responsibility by donating RM13,850 to Sheng De Chinese Primary School in Kuala Lumpur and Sungai Buloh Chinese Primary School in Selangor for the improvement of school facilities.