Important Notice: Updates on Service Tax (SST) Implementation
Dear Valued Customers,
Following the joint media statement by the Association of Banks in Malaysia (“ABM”), Association of Islamic Banking and Financial Institutions Malaysia (“AIBIM”), and Malaysian Investment Banking Association (“MIBA”) on June 25, 2025, Hong Leong Bank Berhad and Hong Leong Islamic Bank Berhad (“HLB” or “the Bank”) will be implementing an 8% Service Tax (SST) on applicable fees and commission-based financial services.
As per the Guide on Financial Services issued on June 9, 2025, this will be rolled out in two phases:
- Phase 1 – Effective July 1, 2025: The 8% SST will apply to specific fees and commissions on certain financial services. Please refer to Appendix A for a detailed list.
- Phase 2 – Effective September 1, 2025: The 8% SST will extend to financial services charged for fees or commissions not listed in Appendix A.
We want to assure you that several exemptions and exclusions are in place. Basic banking services for the public, including charges related to current and savings accounts for both conventional and Islamic banking services, will remain exempt from service tax.
We are carefully reviewing the latest guidelines to ensure full compliance and to minimize any disruption to your banking experience. Please look out for further updates from HLB regarding the SST implementation.
Thank you.