KUALA LUMPUR: A string of tax expansions and subsidy cuts have restricted company cash flow and led to higher operating costs despite no new taxes tabled in Budget 2026, said Datuk Koong Lin Loong, Managing Partner of Reanda LLKG International PLT Chartered Accountants
“Over the past few years, more than 10 new or broadened revenue measures have been rolled out,” he said.
“Even without new taxes, these policies have raised operating costs and reduced liquidity across many sectors," he said at the Upclose with Budget 2026 seminar in Kuala Lumpur, which was jointly organised by K-Konsult Taxation Sdn Bhd and Reanda LLKG International PLT.
Koong, who is also the Treasurer-General of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), pointed to the chamber’s latest survey findings, which consistently list cash flow pressures among the top challenges facing Malaysian businesses.
Koong also renewed calls for the Inland Revenue Board (IRB) to address delays in tax refunds, describing the issue as a long-standing source of frustration for companies.
“When the self-assessment system was introduced, late taxpayers faced penalties — so by the same logic, delayed refunds should come with interest,” he said.
“Unfortunately, many firms are still waiting months or even years to recover overpaid taxes.”
He stressed that the matter goes beyond administrative efficiency. “Timely refunds are crucial for business confidence,” Koong said. “We hope the IRB will set a clear refund timeline so companies can plan their finances and investments more effectively. Predictability encourages compliance.”
Upclose with Budget is Malaysia’s first Chinese-language seminar dedicated to unpacking the national budget. Other speakers at this year's seminar included Neoh Boon Toe, Business Director of K-Konsult Group; Eugene Lim, Director of M&A Transaction Advisory; and Han Ting Kwang, Tax Director of K-Konsult Taxation.
Adam Ng, Deputy Director of e-Invoicing at the Inland Revenue Board, was also present to address participants’ questions on the upcoming nationwide rollout of e-invoicing.
