KUALA LUMPUR (Oct 28): The Electrical and Electronics Association of Malaysia (TEEAM) said the recent spike in the number of COVID-19 cases is back to haunt and hamper businesses.

In a statement on Oct 27, TEEAM president Siew Choon Thye said another round of extended conditional movement control order implemented in Selangor, Kuala Lumpur, Putrajaya and Sabah for two weeks is expected to take toll on industries and businesses.

To weather the pandemic, Siew urged the government to waive the sales and service tax (SST) and income tax penalty for business survival and boost the country’s economy.

He said the SST should be waived for all electrical and electronics (E&E) products and services from the local producer as an incentive to further boost "Buatan Malaysia" products and services drive, thus encouraging more importers to localise their manufacturing plants and increasing foreign direct investment.

He said this would in turn contributes to the reduction of trade deficit, and increase in job opportunities.

Siew said the penalty imposed on forecasted versus actual profit for income taxes to LHDN ought to be waived, adding that this will further lessen financial burden of SMEs during this challenging period.

He also sought an increase in the Special Relief Facility allocation amount under the government’s National Economic Recovery Plan (Penjana) and an acceleratin in disbursement for business survival and sustainability.

Siew called for an increase in the quantum of the existing hiring incentives to help more retrenched workers to secure jobs and reduce unemployment amongst fresh graduates and school leavers to enable businesses to survive the coronavirus pandemic.

He said the goverment should increase the existing hiring incentives for fresh graduates, unemployed aged below 40, unemployed aged 40 to 60; and OKU respectively to RM1,200; RM1,200; RM1,500 and RM1,500 respectively.