Malaysia SST expansion 2025: what businesses need to know
Malaysia widened sales and service tax from July 2025 and raised the minimum wage. See the changes and how businesses should respond.
Published 2 October 2026 · By Naveed Murtaza
Source: Ministry of Human Resources Malaysia
What changed in SST
The Royal Malaysian Customs Department extended the scope of sales and service tax from July 2025, with new categories and rates for certain services.
E-invoicing is also being phased in through LHDN.
Rising costs for businesses
The minimum wage rose to RM1,700 from February 2025 for most employers.
Together with SST changes, this squeezes margins in services and retail.
Marketing response
Communicate price changes clearly, update ads and quotations and emphasise value.
Use data to focus budgets on high-margin services and customers.
What should marketers in Malaysia do next?
Treat this trend as a planning signal rather than a headline. Map which customer questions it creates, build one clear explainer page or landing page that answers them, and run small, measured search and social tests before committing bigger budgets.
Track query growth in Google Search Console and Google Trends, watch competitor ads in the Meta Ad Library and Google Ads Transparency Center, and update your content whenever an official source changes its guidance. Naveed Murtaza helps businesses turn these shifts into practical campaigns, search content and lead journeys.