FMM In The News: FREE MALAYSIA TODAY, June 7, 2025
PETALING JAYA:
The Federation of Malaysian Manufacturing (FMM) has called on the government to revise the Stamp Act 1949 to better reflect current economic conditions and industry standards.
FMM president Soh Thian Lai urged the government to raise the stamp duty exemption threshold for employment contracts from the current RM300 to RM10,000.
“This aligns with today’s salary levels and industry practices,” Soh said in a statement.
He also called for a comprehensive review of how employment contracts and appointment letters are classified under the law, questioning their status as instruments subject to stamp duty.
Under the First Schedule of the Stamp Act 1949, certain types of documents — including employment-related contracts — are subject to stamp duty, unless specifically exempted.
Soh welcomed the government’s recent decision to exempt stamp duty for employment contracts signed before Jan 1, 2025, and supported the waiver of penalties for non-compliance this year— provided contracts are stamped by Dec 31, 2025.
He described the government’s move to delay full enforcement until Jan 1, 2026 as “a pragmatic decision” that allows businesses time to adjust.
“This transition period also gives the finance ministry time to update the regulations without applying them retroactively,” he said.