Retail businesses urge the government for a pro-business budget

"We’ve seen encouraging news that Budget 2024 will focus on the M40 groups and SMEs. Minister of Finance II, YB Stevin Sim said both groups are important because they contribute to country’s economy.", said Wong Teu Hoon, The President of Malaysia Singapore Coffeeshop Proprietors’ General Association (MSCSPGA).

As predicted by several industry players, food prices are projected to increase further in the third quarter of 2023 due to Malaysia’s reliance on imports for ingredients and the weak ringgit against the US dollar. Aside from that, increasing cost on business operations will inevitably further fuel the price hike due to the introduction of minimum wage hike, the increase in utility bills, and others. We strongly urge the government to introduce incentives and long-term solution in addressing these issues in the upcoming budget 2024.

On the other hand, the sales of legal tobacco products in retail shops make up 30% of total revenue. Illicit cigarette prevalence in Malaysia remains high at 55.3pc in May this year, but there are promising signs of decline, and we would like to applaud Government commitment in eradicating illicit trade in Malaysia and continued enforcement should be maintained to drive the prevalence. Furthermore, the Government shouldn’t raise the prices of tobacco products that will jeopardize both local businesses and government’s effort in combatting illicit trade in Malaysia.

The Health Minister’s special advisor, Dr Kelvin Yii, says the government is targeting to table the tobacco bill in the upcoming October Parliament meeting, and that MOH is awaiting recommendations for amendments to the bill from the Health PSSC. We’ve raised our concerns on the bill i.e., high penalties, enforcement burden on retailers etc. and we would like to extend our gratitude that Health PSSC had given us the opportunity to highlight our concerns and we sincerely hope these recommendations are reflected in the tobacco bill.

We are supportive of Prime Minister’s Budget 2024 theme “Madani Economy: Empowering the People” which will steer the economy to safeguard the country’s future. We sincerely hope Budget 2024 will be a budget for people and alleviate our livelihood in the years to come.

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