The associations cautioned that the new SST would likely push up operating costs, forcing mall operators to reduce tenant incentives, defer improvements, or shift expenses onto tenants. — GLENN GUAN/The Star
THE Malaysia Retail Chain Association (MRCA) and the Malaysia Shopping Malls Association (PPKM) have urged the government—ahead of Budget 2026—to phase in the Service Tax (SST) on rental and leasing by reducing the rate to 4% in 2026 and gradually increasing it to 8% over the next decade.
In a joint statement, the two associations emphasised that a calibrated approach is essential to give businesses and consumers sufficient time to adapt, while still allowing the government to meet its fiscal goals in line with sustainable growth and shared prosperity.
