KUALA LUMPUR: SME Association of Malaysia (SME Malaysia) is urging the government to focus on measures to ease the cash flow of pandemic-hit small and medium enterprises (SMEs) when tabling the upcoming Budget 2022.
SME Malaysia president Datuk Michael Kang Hua Keong said businesses are not looking for profit but more for cash flow or survival especially in sectors severely hit by the pandemic such as tourism, film industry, entertainment venues, sports, as well as private education and enrich centres.
"Under Budget 2022, the government should provide tax-free incentives for entrepreneurs, reduce SME tax to 10 per cent from 17 per cent, and reduce the corporate tax rate for the first RM1 million taxable income," he told Bernama.
Kang believes that 2022 will be a recovery year and an endemic year, therefore, SMEs need full support from the government to rebuild and recover from the impacts of COVID-19.
"Malaysian SMEs are facing severe cash flow problems and they are awaiting government aid. Moreover, digital transformation has become even more important for small businesses since the COVID-19 outbreak.
"As businesses look to adjust to the rapidly changing environment, they need support from the government on the way to go forward with digitalisation," he said, adding that manpower would also be a key factor for SMEs to lead the transformation.
Kang said the government needs to provide as many incentives and grants for SMEs, especially on digitalisation to generate more jobs in the country.
"The association expects to see a lot of incentives from the government for the digital economy as well as tax deductions on all expenditures," he said.
If SMEs stay afloat, he said the government should consider giving training grants and special incentives on green, innovation and automation to revive incomes.
"These combinations would attract more foreign and retail local investors.
"The association is looking at 45 per cent SME contribution to the gross domestic product (GDP) by 2025," Kang said.
SME contribution to GDP eased 38.2 per cent in 2020, with a value-added of RM512. 8 billion, compared with 38.9 per cent (value-added: RM553.5 billion) in the preceding year, according to the Department of Statistics Malaysia.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said recently that the budget will give attention and assistance to all sectors including the most badly affected sectors, which are tourism, retail and SME.
Budget 2022 will be tabled in Parliament on Oct 29, 2021.
-- BERNAMA
Bernama
Sat Oct 09 2021
Kang believes that 2022 will be a recovery year and an endemic year. - FILE photo
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.