KUALA LUMPUR, June 17 -- Six major business associations have jointly called on the government to defer the upcoming expansion of the Sales and Service Tax (SST), warning that the move could severely harm Malaysia's economic recovery.

In a joint statement, the groups warned that the imposition of 8 per cent SST on commercial rental and leasing services from July 1 could exacerbate inflation, hinder investments, and weaken consumer confidence.

"We recognise the need for fiscal consolidation, but the timing, scope and magnitude of this tax measure are gravely misguided," the groups said in a statement here.

The statement was jointly released by the SME Association of Malaysia, Malaysia Retail Chain Association, Malaysia Retailers Associa...