The Challenge: Managing SST Compliance Without Sacrificing Cash Flow
A foam manufacturing business located in Klang was facing mounting pressure to comply with Malaysia’s Sales and Services Tax (SST) regime. The management team needed to ensure compliance while keeping tax exposure as low as possible. With large-scale production and tight margins, the company was at risk of losing competitiveness due to rising indirect tax costs.
Our Approach: Operational Review and SST Restructuring
NKH Chartered Accountants worked closely with the client’s leadership to conduct a detailed analysis of their manufacturing operations. Our tax team identified specific areas where the business could apply for SST exemptions and claimable credits, then redesigned the company’s tax structure to align with those advantages.
a) Identifying applicable SST exemptions and credits for raw materials and processes.
b) Restructuring tax invoicing, reporting cycles, and procurement flows.
c) Streamlining SST documentation and compliance tracking.
d) Ongoing advisory support to maintain efficient reporting and avoid audit triggers.
The Result: Greater Savings and Enhanced Financial Agility
a) The company successfully reduced its SST-related tax burden.
b) Improved cash flow allowed for better working capital management.
c) Tax savings were reinvested into core operations and capacity upgrades.
d) All filings met compliance deadlines with no penalties incurred.
This case demonstrates the value of specialised SST advisory for manufacturers. Strategic tax planning not only protects cash flow but also empowers smarter reinvestment decisions.
Looking for support with SST? Explore our tax planning in Klang and Selangor to see how we help manufacturers stay compliant and competitive.
Partner with NKH Chartered Accountants, a trusted accounting and tax firm in Klang, Selangor unlock tax efficiency and sustainable growth for your business.
Kim Heng is an accounting and taxation professional whose sterling reputation has drawn countless clients to the NKH Group. When the GST was first introduced, he was commissioned to give 100+ talks on GST implementation as well as over 20++ talks on E- Invoice implementation by multiple businesses and industry associations, showing the depth of their confidence in his expertise. In the following years, Kim Heng would go on to share his knowledge on (among others) branding, tax planning, and fundraising at 20+ seminars organised by business associates that were widely attended by the public. He has over 20 years of experience consulting and advisory on taxation, corporate structure planning, business valuer, company secretarial administration, constitution advisory, and etc.
