LOCAL express companies are seeking a waiver of sales tax for domestic deliveries, to better compete against international players.
“The domestic express delivery business is going through tough times, especially in the current operating environment where there is no sales tax imposed on transportation and international-bound shipments,” GD Express Carrier Bhd executive deputy chairman Teong Teck Lean told Business Times.
“As such, we hope that the government will give us an opportunity to level the playing field by abolishing the sales tax on domestic deliveries as well,” he said.
Like the shipping industry, he also hopes that the express industry be accorded a pioneer status and income tax relief.
“As our industry employs and trains tens of thousands of staff from lower educated and diverse backgrounds, it is indeed doing a great deal of social responsibility, which enables other businesses to grow,” he added.
Teong was recently re-elected to a sixth two-year term as president of the Association of Malaysian Express Carriers (Amec), whose 24 members control some 90 per cent of the RM1.5 billion express delivery market in Malaysia.
Teong has served on the board since March 2003.
“This year, we expect to see more members joining the association to further boost the industry,” said Teong.
K. Don Premaseri, Federal Express Services (M) Sdn Bhd managing director for Malaysia and Brunei, was elected vice-president to serve the 2008-2009 term.
The other members of the board are Chris Tan of City-Link Express (M) Sdn Bhd and Peter Ng of Skynet Worldwide (M) Sdn Bhd.
In addition, there are seven council members elected comprising Nationwide Express Courier Services Bhd, Pos Malaysia Bhd, ABX Express (M) Sdn Bhd, TNT Express Worldwide (M) Sdn Bhd, DHL Worldwide Express Sdn Bhd, Malaysian Express Worldwide Sdn Bhd and PSH Express Sdn Bhd. – By Kang Siew Li