KUALA LUMPUR: The service tax hike has placed Malaysian players at a disadvantage compared to foreign counterparts, according to Glide Technology Sdn Bhd founder and chief executive officer Datuk Muhazli Muhamad.
He said Malaysian businesses find it difficult to compete with international traders who can offer lower rates.
"Products from overseas, such as China, are cheaper for consumers because they are not burdened by such tax. This situation has raised concerns about the future of domestic industries."
Muhazli urged the government to rectify the Sales and Service Tax disparity to level the playing field for Malaysian industries.
He believes that this is essential to safeguard the interests of small and medium enterprises, ensuring the long-term sustainability of the economy.
"The hike in service tax will force manufacturing companies to raise prices, thus making exports less competitive.
"This increase will have a cascading effect, leading to reduced consumer purchasing power and ultimately impacting businesses. Therefore, I hope that the government will review this decision."
Muhazli said Glide Technology will continue to manufacture quality, technologically advanced lubricants and other petroleum-based products.
It has penetrated international markets, including Japan, Singapore, Brunei, Bangladesh, China, Turkey, Pakistan, the United Arab Emirates and Angola.
"This year, we plan to create a joint-venture company to establish a lubricant production unit in the African market.
"We aim to produce 20 million litres or 20,000 tonnes of oil by the end of this year.
"We will also expand our business into other sectors such as marine, energy and transformer oil," he said.