CYBERJAYA: Sunway Healthcare is evaluating the potential effects of the impending implementation of the expanded Sales and Service Tax (SST) as the company believes the announced timeline is insufficient for private hospitals to adequately prepare for the new policy.
“Given the relatively short notice ahead of the July 1 implementation date, we require additional time to assess the situation fully.
“Our team is reviewing the matter, but we are unable to provide further comment at this stage as we do not yet have complete data,“ Sunway Healthcare president Datuk Lau Beng Long told SunBiz on the sidelines of the signing of a memorandum of understanding involving Sunway Medical Centre, University of Cyberjaya and Cyberjaya College Kota Kinabalu to develop nursing talent in Malaysia today.
To recap, on June 9, the government announced the implementation of revisions to the SST rates and an expansion of the Service Tax’s scope, effective July 1.
Lau said Sunway Healthcare is aligning with the Association of Private Hospitals Malaysia’s (APHM) call to delay the implementation of the expanded SST.
“APHM president Datuk Dr Kuljit Singh is reviewing this matter. The association has appealed to the relevant ministry to either review or defer the implementation date. As the appeal is under consideration, we are awaiting the outcome to determine whether the policy will be implemented and, if so, when it will take effect,“ Lau said.
APHM has called for a delay in the implementation of the expanded SST on private healthcare services for foreigners.
In a statement on June 11, APHM stated that while it supports the government’s broader policy objectives of broadening the tax base and stimulating economic growth, private hospitals require more time to make the necessary operational adjustments to comply with the new tax rule.
The short implementation time frame presents significant operational challenges as private hospitals would need sufficient lead time to adjust administrative systems, billing processes, and compliance procedures, it said.
APHM has submitted a written request to the Ministry of Finance for a more practical timeline beyond the current July 1 start date to minimise disruption to patient services and ensure full compliance.
APHM has also sought further clarification on several aspects of the new policy, including its application to professional fees charged by doctors, treatment of foreigners residing in Malaysia and other implementation matters.
“Private hospitals are an essential part of Malaysia’s health care ecosystem, delivering quality care to both local and international patients,“ APHM said.
