Telecommunication companies will give rebates to Malaysian prepaid customers from Jan 1 until Dec 31, 2016.

The Communication and Multimedia Consumer Forum of Malaysia (CFM) in a statement today said the rebate, equivalent to the Goods and Services Tax (GST) amount, would be credited directly to customers' prepaid accounts in line with the government's announcement during Budget 2016 in October.

"This means a customer who tops up RM10 will initially get an airtime of RM9.43 as the six per cent GST will be deducted from the top-up.

"The customer will receive a rebate of RM0.57 within 24 hours. The GST paid by customers will be collected and remitted to Royal Malaysian Customs, in accordance with the GST Law and guidelines for all goods and services consumed," it added.

CFM said telcos have worked hard to ensure a smooth transition so that customers will have a seamless experience when topping up, and have also been continuously investing in modernising the country’s network to ensure quality customer experience.

CFM was established in February 2001 as a society with representation from all relevant parties, including the "supply and demand" side of the communications and multimedia industry, and was designated by the Malaysian Communications and Multimedia Commission in 2002 to protect the rights of consumers in that sector.