TNG Digital Urges Govt To Extend SST Exemption For Digital Services

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 3 (Bernama) -- TNG Digital Sdn Bhd, operator of TNG eWallet, has urged the government to extend the sales and services tax (SST) exemption on digital services in Budget 2025.

The fintech company believes that extending this exemption is vital for keeping digital services affordable and accessible to underserved communities, particularly the B40 and M40 income groups, as well as micro, small, and medium enterprises (MSMEs).

Plus, this extension would also promote cashless transactions, the company shared in response to questions from Bernama via email.

TNG Digital emphasised that the continued exemption is vital for ensuring these segments can access digital financial services without facing additional costs associated with cashless transactions.

“The e-wallet industry is still maturing, both in terms of customer readiness and profitability. This is why extending the SST exemption would be instrumental in supporting further growth and encouraging wider adoption of cashless payments.

“This aligns with the nation’s goals of creating an inclusive and progressive financial system,” it said.

TNG Digital also proposed various measures to enhance financial inclusion and support economic growth in the upcoming budget.

These include initiatives aimed at promoting digital financial services to underbanked populations and policies to improve MSMEs' access to digital tools.

Furthermore, TNG Digital advocates for improvements in rural infrastructure, particularly by expanding high-speed internet access in underserved regions to facilitate digital transformation and greater participation in the digital economy.

On green financing, the company suggested that the government enhance the Net Energy Metering scheme, allowing the public to convert Tenaga Nasional Bhd credits into TNG eWallet credits, thereby promoting sustainable practices.

Additionally, TNG Digital proposed establishing a nationwide programme to convert recyclable waste into e-wallet credits, aligning with the circular economy initiatives championed by the National Circular Economy Council. 

“To address Malaysia's waste management challenges, this programme enables participants to convert recyclable materials into e-wallet credits, incentivising recycling and supporting the goal of raising the recycling rate to 40 per cent by 2025,” it added.

In light of rising living costs, TNG Digital proposed that the government distribute financial aid, such as 'Sumbangan Tunai Rahmah' and 'Bantuan Awal Persekolahan', through e-wallet platforms. 

It said this would ensure efficient and accessible delivery of aid to those most in need.

With the government set to unveil Budget 2025 on Oct 18, TNG Digital hopes these proposed measures will be considered to drive further growth in Malaysia’s digital economy, promote financial inclusion, and support sustainable development initiatives.

-- BERNAMA