KUALA LUMPUR: The Malaysian Small and Medium Enterprises Association (Samenta) hopes that the government will avoid introducing new taxes or imposing additional levies that could diminish the competitiveness of the Micro, Small, and Medium Enterprise (MSME) sector.
Samenta president Datuk William Ng urged the government to focus on aiding the sector in enhancing operations and managing costs by leveraging opportunities such as artificial intelligence and the evolving global economic landscape.
"We remain committed to supporting the Madani Economy and Prime Minister Datuk Seri Anwar Ibrahim, and we hope that the concerns of the MSMEs will be addressed in Budget 2025," he said in a statement.
Leonm Tang Kai Zhe, liaison chairman of the Kedah and Perlis chapter of the Malaysia Entrepreneurs’ Development Association (PUMM), expressed hope for special incentives for MSMEs in the 2025 Budget, including allowances for companies employing degree and diploma graduates.
He noted, "The government has set a minimum wage rate of RM1,500 per month, and many MSMEs are struggling to comply.
"For diploma and degree graduates, their salaries exceed RM1,500, creating additional burdens for small and medium-sized companies, which may resort to hiring Sijil Pelajaran Malaysia (SPM) graduates."
He proposed that the allowance for MSMEs be offered for a specific period, like six months, to help alleviate the financial burden on companies employing graduates.
In Kelantan, the chairman of the Kelantan chapter of the Malaysian Malay Chamber of Commerce (DPMM), Wan Zulkifli Wan Abdullah, hoped the government would enhance tax reduction incentives for MSMEs to adopt technology, invest in Environmental, Social, and Governance (ESG) initiatives, and purchase halal products.
He stated that this would benefit entrepreneurs at different stages, whether starting, growing, or recovering from the Covid-19 outbreak.
"We hope the government can provide more allocations and incentives for digital infrastructure, such as high-speed internet and access to technology.
"Moreover, the government can expand internet coverage and promote digital transformation among MSMEs through technical and financial assistance programs," he said.
He suggested that the government establish a special fund offering low or zero-interest loans with a simplified application and evaluation process to assist entrepreneurs in the sector.
Additionally, he urged the government to regulate the influx of foreign traders from countries like Bangladesh, Pakistan, and Cambodia, as some fail to pay business taxes, particularly those running barbershops, grocery stores, and fruit stalls.
Wan Zulkifli also advocated for the reintroduction of the Goods and Services Tax (GST) to boost the country’s revenue, thereby strengthening the economy and improving the well-being of the people.
The 2025 Budget, themed "Ekonomi Madani, Negara Makmur, Rakyat Sejahtera," will be tabled by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Minister of Finance, this Friday (Oct 18). – Bernama
