Works minister says SST expansion will have minimal impact on house prices

KUALA LUMPUR (June 19): Works Minister Datuk Seri Alexander Nanta Linggi (pictured) said the expansion of the sales and service tax (SST) will have a limited impact on house prices.

On the upcoming SST expansion, which will be effective from July 1, Nanta said the government has taken a measured approach to minimise the impact on housing construction costs, stating that public and residential housing developments are exempt to curb rising house prices.

“Despite concerns over rising costs, the SST expansion will have a limited impact on [price] growth. Our transitional measures are designed to preserve momentum while ensuring a fairer and more sustainable tax system,” he told the press at the opening of the 27th International Surveyors Congress on Thursday. 

He added that the 12-month tax exemption will be granted to non-renewable contracts, giving contractors time to adjust pricing and project scopes. Moreover, double taxation will be avoided through specific transaction exemptions.

The minister also highlighted that SST on basic construction materials remains at 0%, which ensures that essential supplies remain affordable.

Speaking at the opening ceremony of the 27th International Surveyors Congress, organised by the Royal Institution of Surveyors Malaysia, at Sime Darby Convention Centre in Kuala Lumpur on Thursday, Nanta said it is important to retain young professional surveyors in Malaysia.

“To keep our young talents at home, we must create an ecosystem that values their contributions—better pay, flexible work cultures, and support for those brave enough to start their own ventures. Only then can we truly build a resilient future for the surveying profession in Malaysia,” he said.

He added that the country needs professional surveyors as the government is modernising ageing infrastructure across the country.

“What do we really need for these projects? Good surveyors—land surveyors, quantity surveyors, material surveyors. The government expects our professionals to fully embrace technology to support these efforts,” he shared during the press conference. 

He added that the Public Works Department estimates RM4 billion to restore Malaysia’s road network to meet the international standards. He also highlighted the importance of prioritising quality over quantity to reduce repeat repairs.

“Now, we usually only get around RM1 billion annually for road maintenance. But if we want to bring our roads to the [international] standard, we need nearly RM4 billion. Even with limited funds, we must ensure that the quality of the work is top-notch [to avoid repeat repairs],” he said. 

The two-day congress consists of parallel sessions discussing current issues and topics in different segments such as geomatics and land surveying, quantity surveying, property and building surveying and sustainability.

Themed “Innovate To Elevate: Surveyors Reinventing the Profession and Industry”, the congress gathered more than 450 professionals from Malaysia, Hong Kong, Singapore and other countries to explore how sustainable practices, technology and collaboration are reshaping the surveying landscape today.

Credits: Edgeprop.my - Published June 19th 2025 - Allyson Tan / theedgemalaysia.com