Extend SST Exemption For Digital Financial Services In Budget 2025 – AEMI

The Association of E-Money Issuer (AEMI) has recently reaffirmed its commitment to accelerating financial inclusion in Malaysia through the expansion of access to cashless services.

According to a recently released statement, the association looks forward to fostering ongoing dialogue to ensure the digital economy remains robust, inclusive, and accessible to all Malaysians.

AEMI believes that it is essential that Malaysia maintains policies that promote growth and inclusivity. As such, AEMI proposes for the government to consider extending the SST exemption in Budget 2025.

Extend SST exemption for online financial services

This extension is viewed as important for sustaining industry growth and promoting the wider adoption of cashless payments, which aligns with Malaysia’s efforts to build an inclusive and progressive financial system.

With E-wallets being a key driver for Malaysia’s digital revolution, AEMI has outlined a key recommendation for Budget 2025 that is aimed at propelling the industry’s growth, accessibility, and its vital role in a more inclusive economy.

Provide greater access to cashless services

As a core driving force for Malaysia’s digital transformation, AEMI members have played a pivotal role in delivering digital financial services to a diverse user base. These include the B40 and M40 groups as well as micro-SMEs. These groups in particular are essential to the country’s economy and stand to benefit greatly from even greater accessibility to cashless services.

This way, the nation can ensure that the widest number of people will have access to digital financial solutions. The association recognises the government’s efforts to broaden the tax base for national development and trusts that these initiatives will continue to support the expansion of cashless services.

The current Sales and Service Tax (SST) exemption has played an instrumental part in making digital financial services more affordable, especially in underserved areas.

Previously, Budget 2024 had increased SST from 6% to 8% and expanded it to include logistics services, brokerage, underwriting, karaoke and other entertainment outlets as well as private clubs.