Money

CYBERJAYA — The Inland Revenue Board (IRB) has processed RM17 billion in tax refunds covering 3.53 million cases between Jan 1 and Dec 18, 2025.

In a statement today, the IRB said the refunds included an additional RM2 billion allocation recently announced by Prime Minister Datuk Seri Anwar Ibrahim.

“RM2 billion has been processed and credited between Dec 9 and Dec 18, 2025, covering 7,819 cases.

“The remaining RM2 billion of the additional allocation will be processed and disbursed before the end of December,” it said.

According to the statement, the first RM1 billion of the additional funds cleared refund backlogs exceeding three years, regardless of the amounts involved.

“The subsequent RM1 billion has been processed for taxpayers with refunds aged two years or more, with priority given to small and medium enterprises (SMEs),” it added.

On Dec 7, 2025, Anwar said the government had increased the tax refund allocation from RM2 billion to RM4 billion to accelerate outstanding payments to taxpayers.

The statement advised taxpayers to update and ensure their bank account details with the IRB are accurate and current to facilitate smoother refund processing.

“This is because some refunds could not be processed due to incorrect or missing bank account information.

“Furthermore, refunds cannot be processed if the case is under legal dispute, the taxpayer has outstanding assessments for other years, or the eligible company has been liquidated or dissolved,” the statement said.

The IRB confirmed it will continue to ensure refunds are disbursed systematically and progressively, prioritising the largest amounts and outstanding refunds involving SMEs. — BERNAMA

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By SHAHRIN AIZAT NOORSHAHRIZAM

ALL benefits administered by the Social Security Organisation (Perkeso) across four legislations will be fully accessible through online applications beginning January 2026, as part of efforts to simplify access to social protection and reduce administrative burdens on contributors and their families.

Human Resources Minister Datuk Seri Ramanan Ramakrishnan said the move follows an internal review of Perkeso’s processes and infrastructure, and reflects the government’s commitment to ensuring social security services are accessible, efficient and user-friendly.

“To avoid inconveniencing contributors, applications can now be made online using either a mobile phone or a PC,” he said after his inaugural visit at the Perkeso Tower in Kuala Lumpur today.

He said applications submitted via the Lindung Faedah portal will cover benefits under the Employees’ Social Security Act 1969 (Act 4), Employment Insurance System Act 2017 (Act 800), Self-Employment Social Security Act 2017 (Act 789) and the Housewives’ Social Security Act 2022 (Act 838).

Ramanan further said that benefits such as for permanent and temporary disability, invalidity pension, employment injury disease benefits, dependants’ benefits and survivors’ pensions can now be applied for digitally, eliminating the need for contributors or next-of-kin to travel to Perkeso offices.

He said the digital shift is expected to streamline the processing of more than 200,000 benefit applications annually, saving time and travel costs for claimants, despite Perkeso already having 54 offices nationwide and 295 satellite centres.

Ramanan added that the initiative is aligned with the broader Lindung rebranding, which consolidates social protection schemes under clearer and more accessible categories, including Lindung Pekerja, Lindung Kendiri, Lindung Kerjaya and Lindung Kasih.

Ramanan also reiterated his commitment to ensuring the smooth implementation of Lindung 24 Jam, a non-occupational accident scheme recently approved by Parliament, which is expected to benefit more than 10 million active contributors in the formal sector by the first or second quarter of 2026.

Separately, he said Perkeso has been instructed to study the feasibility of a Traveller Scheme to protect nearly 400,000 Malaysian workers who commute daily across the Johor Causeway, ensuring they are not excluded from social security coverage.

“We are mindful of workers who cross the border on a daily basis, and we want to ensure they are not excluded from social security protection,” he said.

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By SHAHRIN AIZAT NOORSHAHRIZAM

AROUND 300,000 employers are eligible for an 80% reduction in late payment penalties under the Social Security Organisation’s (Perkeso) Faedah Caruman Lewat Bayar (FCLB) initiative, involving total penalties amounting to RM157 million accumulated between 2018 and 2025.

The reduction, which takes effect immediately until the end of February 2026, was announced by Human Resources Minister Datuk Seri Ramanan Ramakrishnan as part of a broader set of social security reforms aimed at easing cost pressures faced by employers, particularly micro, small and medium enterprises (MSMEs).

Ramanan said the temporary relief was necessary to support business continuity amid rising operating costs, while encouraging employers to regularise outstanding contributions without being overburdened by penalties.

“Following discussions with Perkeso, it was agreed that the penalty will be reduced, with an 80% discount, provided payment is made before the end of February,” he said during a press conference after his inaugural working visit to Perkeso Tower in Kuala Lumpur today.

He added that many employers are already aware of the penalties imposed for late or non-payment, and the current discount provides an opportunity for them to regularise their position before stricter enforcement is carried out.

Ramanan said the move reflects the government’s understanding of cost pressures faced by businesses, particularly micro, small and medium enterprises, while ensuring the sustainability of Perkeso’s social security coverage for workers.

He noted that the initiative would not only improve compliance levels but also strengthen Perkeso’s long-term contribution base, ensuring the sustainability of social protection coverage for more than 10 million workers across the formal and informal sectors.

Ramanan added that Perkeso has also been enhancing its internal infrastructure and administrative efficiency to ensure smooth implementation of ongoing reforms, including the planned rollout of Lindung 24 Jam, a non-occupational accident scheme targeted for implementation by the first quarter or latest by the second quarter of 2026.

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SHORT-term rates are expected to remain stable today, supported by Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.

Liquidity in the banking system is estimated at RM39.25 billion in the conventional market and RM20.61 billion in Islamic funds.

The central bank has announced the availability of reverse repos, sell-and-buy-back agreements (SBBA), and collateralised commodity murabahah facilities with tenors of one week, one month, and three months.

BNM will conduct a RM1 billion reverse repo tender for seven days and an Islamic reverse repo tender (SBBA) of RM200 million for seven days.

At 4 pm, BNM will offer up to RM40.3 billion in conventional overnight tenders and RM20.8 billion in murabahah overnight tenders. — BERNAMA  

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THE ringgit opened slightly higher against the US dollar on Friday, holding at the 4.08 level, supported by growing expectations of a softer US monetary policy outlook and recent global central bank developments.

At 8 am, the ringgit strengthened to 4.0820/0940 against the US dollar from 4.0840/0880 at Thursday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of an interest rate cut in 2026 have been gaining traction following softer-than-expected US inflation data.

It was reported that US inflation in November came in below expectations at 2.7 per cent, compared with consensus estimates of 3.1 per cent. Similarly, core inflation moderated to 2.6 per cent from 3.0 per cent in September.

“Having said that, October’s data point was not available due to a government shutdown which occurred for 43 days beginning in October, resulting in the inability to compute sequential data points such as month-on-month figures,” he told Bernama.

Meanwhile, he said global monetary policy signals were mixed, with the Bank of England having cut its bank rate by 25 basis points to 3.75 per cent, marking its fourth reduction this year amid persistent moderation in inflation.

In contrast, the European Central Bank kept its policy rate unchanged following an upbeat assessment of growth and inflation next year.

“Despite the softer US inflation, the US Dollar Index rose 0.07 per cent to 98.441 points overnight, while the ringgit closed 0.09 per cent higher on Thursday, outperforming most Asian peers.

“Perhaps today the ringgit might test a breach of the RM4.08 level, as the case for a lower US federal fund rate in 2026 is building up,” he added.

At the opening, the ringgit traded mostly lower against a basket of major currencies.

It depreciated against the British pound to 5.4629/4790 from 5.4513/4567 at Thursday’s close and fell against the Japanese yen to 2.6234/6313 from 2.6188/6217, but edged up against the euro to 4.7861/8002 from 4.7869/7915.

The local currency however traded mixed against ASEAN peers.

It weakened against the Singapore dollar to 3.1639/1736 from 3.1620/1653, slipped versus the Thai baht to 12.9810/13.0287 from 12.9750/9935, almost flat against the Philippine peso to 6.97/6.99 from 6.97/6.98, but inched up against the Indonesian rupiah to 244.1/244.9 from 244.2/244.5 previously. — BERNAMA

 

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KUALA LUMPUR — The Federal Territories Islamic Religious Council Zakat Collection Centre (PPZ-MAIWP) recorded waqf collections amounting to RM8 million last year, reflecting growing public awareness of the importance of the Islamic endowment.

PPZ-MAIWP deputy chief executive officer (Operations) Mohammed Hassan said the increase indicates that Muslims are beginning to view waqf as a vital instrument for socio-economic development, effectively reshaping the funding landscape for infrastructure projects in the Federal Territories.

He noted that the momentum aligns with the agency’s strategy to increasingly utilise waqf funds to finance long-term physical projects, thereby reducing reliance on zakat funds, which face distribution deficits.

“We recognise that zakat is primarily meant to address short-term welfare needs and must prioritise the asnaf (eligible recipients). Waqf, on the other hand, is more suitable for long-term development such as the construction of buildings and assets with lasting benefits.

“We are working to change this mindset, zakat for urgent needs, while waqf is to build sustainable socio-economic strength for the ummah over the next 10 or 20 years,” he told Bernama.

Mohammed acknowledged that awareness gaps remain, particularly misconceptions that waqf is only for those who own land or permanent assets, unlike sadaqah (charity), which is perceived as more accessible.

“Many think waqf is difficult, that one must donate land for a mosque or cemetery. At PPZ-MAIWP, we offer cash waqf starting from as low as RM10, enabling all segments of society to contribute to projects such as hospital equipment and educational needs,” he explained.

To address confusion arising from the growing number of waqf-collecting agencies and to rebuild public trust, Mohammed said PPZ-MAIWP has rebranded its waqf products from ‘Wakaf PPZ’ to ‘Wakaf Wilayah Persekutuan’.

He said the rebranding is more inclusive, reflecting that the funds collected are for the well-being of all residents of the Federal Territories, while also avoiding confusion over PPZ’s primary role, which is closely associated with zakat collection.

“The proliferation of collection agencies does raise public doubts. That is why at PPZ-MAIWP, we place great emphasis on transparency and credibility. For specific waqf contributions, we report back to donors once a project is completed so they can see the impact of their contributions,” he said.

Mohammed also highlighted the income tax incentives offered by the government to encourage cash waqf contributions.

He explained that cash waqf donations made through Wakaf Wilayah Persekutuan are eligible for income tax deductions of up to 10 per cent of aggregate income under Subsection 44(11D) of the Income Tax Act 1967.

“Many are unaware that besides zakat rebates, there are also tax deductions for cash waqf. This is a well-crafted legal instrument designed to encourage Muslims to give,” he said.

According to him, the accumulated waqf funds are currently being actively channelled into high-impact projects, including the provision of hospital beds, the use of smartboards in schools, and the development of Technical and Vocational Education and Training (TVET) centres for asnaf children.

He urged Muslims not to view waqf as a burden or something detached from daily life, but rather to seize it as an opportunity for continuous charity whose rewards never cease.

“We want to make waqf a culture. Imagine if one person contributes RM10 a month, the impact on the economic strength of the Muslim community would be tremendous.

“Waqf assets are perpetual in nature. Even after we are gone, their benefits will continue to flow to society for the next 50 or 100 years. That is our true legacy,” he said.

Muslims interested in contributing to waqf or seeking further information can visit wakafwilayah.com.my, call the hotline 1-300-885757 or follow @wakafwilayah on social media. — BERNAMA

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AEON Credit Service (M) Bhd reported its share of losses in AEON Bank for the nine months ended Nov 30, 2025 widened to RM54.04 million from RM45.51 million a year earlier, mainly due to higher technology, personnel and marketing costs to support the launch of business banking.

The consumer financing group’s major shareholder is Japan’s AEON Financial Service Co Ltd.

In an exchange filing today, AEON Credit said its total transaction and financing volume for the nine-month period rose 8% to RM6.754 billion, while revenue increased 13.2% to RM1.840 billion from RM1.626 billion.

Net profit in the nine-month period grew slightly to RM241.59 million from RM239.64 million as higher revenue was offset by higher impairment losses on financing receivables and other operating expenses, while the loan loss coverage ratio stood at 228% as at Nov 30, 2025 versus 231% a year earlier. — TMR

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KUALA LUMPUR — The ringgit closed marginally higher against the greenback on Thursday as market participants awaited the release of the US consumer price index (CPI) report later tonight.

At 6 pm, the ringgit climbed to 4.0840/0880 against the US dollar, from 4.0855/0940 at yesterday’s close, after having opened at the 4.07 level in the morning session.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US November CPI is expected to rise 3.1 per cent from 3.0 per cent in September based on consensus estimates.

“The core CPI is anticipated to remain at 3.0 per cent. All in all, the inflation rate is expected to climb as the effect of the higher US import tariffs starts to creep in. Hence, this could complicate how the market sees the US Federal Reserve with respect to interest rate decisions going into next year,” he told Bernama. 

He said a higher inflation rate would mean the monetary policy stance is likely to remain restrictive, and that could support the US dollar, noting that the US Dollar Index (DXY) rose 0.09 per cent to 98.457 points as market participants awaited the release of the US CPI.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It fell against the British pound to 5.4513/4567 from 5.4439/4553 at yesterday’s close, edged down against the euro to 4.7869/7915 from 4.7866/7965, but rose against the Japanese yen to 2.6188/6217 from 2.6267/6321.

The local currency also traded mostly lower against ASEAN peers.

It depreciated against the Singapore dollar to 3.1620/1653 from 3.1614/1682, weakened versus the Thai baht to 12.9750/9935 from 12.9657/9989, dipped against the Philippine peso to 6.97/6.98 from 6.96/6.97, but improved against the Indonesian rupiah to 244.2/244.5 from 244.7/245.3 previously. — BERNAMA

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THE ringgit opened higher at the 4.07 level against the US dollar, the best level seen in close to five years, despite a firmer US Dollar Index (DXY), as market participants continued to assess the US Federal Reserve’s (Fed) policy outlook.

At 8 am, the ringgit strengthened to 4.0795/0915 against the greenback, from 4.0855/0940 at yesterday’s close. The level was last seen on March 3, 2021, when it ended the session at 4.0720 against the US dollar.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose 0.25 per cent to 98.389 points, as the latest comments from Fed officials indicate they are not in a hurry to reduce rates.

He said Fed Governor Christopher Waller suggested the prevailing policy rate remains 50 to 100 basis points above its neutral rate and that the Fed has room to cut it further.

Waller was reported as saying there is no urgency to adjust policy immediately, as the labour market is weakening at a gradual pace.

“Yesterday, the ringgit closed 0.10 per cent lower against the US dollar. Therefore, expect the ringgit to exhibit range-bound trade between RM4.08 and RM4.09 today,” Mohd Afzanizam told Bernama.

At the opening, the ringgit was mostly lower against a basket of major currencies.

It fell against the British pound to 5.4555/4716 from 5.4439/4553 at Wednesday’s close and was lower against the euro at 4.7897/8038 from 4.7866/7965. However, the ringgit gained against the Japanese yen, rising to 2.6236/6315 from 2.6267/6321 yesterday.

In contrast, the local currency strengthened against its ASEAN peers.

It appreciated against the Singapore dollar to 3.1592/1688 from 3.1614/1682, improved versus the Thai baht to 12.9467/9930 from 12.9657/9989, advanced against the Indonesian rupiah to 244.3/245.2 from 244.7/245.3 and rose against the Philippine peso to 6.95/6.97 from 6.96/6.97 previously. — BERNAMA

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KUALA LUMPUR — The ringgit snapped four consecutive days of gains to close slightly lower against the US dollar on Wednesday as some traders took profit.

At 6 pm, the ringgit inched down to 4.0855/0940 against the greenback, from 4.0835/0875 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, said the ringgit performed extremely well today, nonetheless, as it continued to gain against other currencies. “The ringgit appreciated against the Singapore dollar at the close today. The next data point will be the US consumer price index (CPI), which will be published tomorrow,” he told Bernama. 

Mohd Afzanizam noted that the ringgit hit 4.0795 in the early morning session against the US dollar, its strongest showing in nearly five years, as traders and investors digested the mixed signals from the US labour market data overnight.

At the close, the ringgit traded higher against a basket of major currencies.

It gained against the British pound to 5.4439/4553 from 5.4760/4813 at yesterday’s close, rose against the Japanese yen to 2.6267/6321 from 2.6372/6400, and edged up against the euro to 4.7866/7965 from 4.8014/8061.

The local currency traded mostly lower against ASEAN peers.

It appreciated against the Singapore dollar to 3.1614/1682 from 3.1657/1691, but weakened versus the Thai baht to 12.9657/9989 from 12.9532/9721, edged down against the Indonesian rupiah to 244.7/245.3 from 244.6/245.0 and dipped against the Philippine peso to 6.96/6.97 from 6.95/6.96 previously. — BERNAMA

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