Two Hidden Costs When Shipping to Malaysia
One of Malaysia’s first responses to the burgeoning threat of Covid-19 was to implement a Movement Control Order. What initially should have been a 2 week restriction from March 18 has now been extended till 31 December, nearly 10 months later.
Both Singaporeans and Malaysians alike have been greatly affected by this. Many who have relatives across the causeway have not seen them in months. In order to celebrate family events such as birthdays or anniversaries, many have turned to JustShip to ship over presents and gifts. Care packages are not uncommon, and so are shipping requests to courier house keys back to their landlords.
If you’re looking to ship a parcel from Singapore to Malaysia, you’ll want to know about these hidden costs that might jack up your shipping fee.
1. Tax Threshold
For all imported goods into Malaysia, a customs tax might apply. The tax threshold on all taxable goods is 500 MYR, which means that as long as your goods have a declared value of more than and equal to 500 MYR, there is a chance of additional customs taxes.
Taxation for countries also depends on the local GST (Goods and Services tax) or VAT (Value-Added tax). For Malaysia, it is the SST, which stands for Sales and Service Tax. Implemented from September 18 2019, SST is a single-stage tax. The sales part of the SST tax applies for goods shipped into Malaysia, and it is charged at point of entry be it air, sea or land. It is imposed at a rate of 5%, 10% or a specific rate for petroleum products. More information here (Malaysia Customs) and here (Hawksford Guide).
Neither JustShip nor FedEx can advise accurately on customs tax as the full information is not released by the countries. Customs tax is also dependent on the type of items contained in the shipment. Customers are advised to contact their destination country’s customs directly via their website or customer service and enquire specifically.
2. Rural Surcharge / Out of Delivery Area Surcharge
For certain parts of Malaysia (i.e. Sarawak), FedEx charges an additional fee, on top of the regular shipping fee. This fee is known as the Out of Delivery Area Surcharge, and often applies to locations that are very far away from city areas – the nearest being an hour away. Remote universities or resorts can also fall under this surcharge category.
The rural area surcharge typically comes up to SGD 33.60, but may vary depending on the location.
If you’re looking to ship with JustShip and are wondering if your destination is a remote location, please contact us to speak with a customer service representative.
JustShip’s tech team is currently working on ensuring that our website is seamlessly integrated with FedEx’s API – providing all our customers an easy and efficient solution to checking remote surcharges.
Stay tuned for more information!
JustShip offers cheap shipping from Singapore to Malaysia with prices as low as SGD 24. Our prices are the lowest amongst reputable and reliable shipping companies. You can compare our prices with prices from other courier companies here.