Budget 2025: KLSICCI Proposes Inclusive Measures For MSMEs To Lift Economic Growth

KUALA LUMPUR, Oct 1 (Bernama) – The Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) has submitted several proposals to the Finance Ministry for Budget 2025 to lift and empower micro, small, and medium enterprises (MSMEs) while promoting inclusive economic growth in line with the MADANI Economy framework.

 KLSICCI president Nivas Ragavan in a letter addressed to Finance Minister II Senator Datuk Seri Amir Hamzah Azizan emphasised the importance of addressing challenges faced by MSMEs, especially within the Indian business community. 

"MSMEs form 98 per cent of the business ecosystem in Malaysia, with nearly 70 per cent being micro-business owners. Many of these businesses have faced stagnation for more than a decade," Nivas said in an Aug 12 letter made available to Bernama.  

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He stressed that post-COVID-19 challenges exacerbated the struggles of small and medium enterprises (SMEs), calling for immediate intervention. 

KLSICCI highlighted the need to reinstate the goods and services tax (GST) at a reduced rate of 3 per cent. 

This would, according to KLSICCI, streamline the tax structure while providing a stable revenue base for the government. 

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“A GST rate of 3 per cent offers a balanced approach, supporting fiscal sustainability without overburdening businesses and consumers,” he said.

Other key recommendations include raising support for agricultural entrepreneurs, simplifying administrative burdens for MSMEs by waiving e-invoicing requirements for businesses with an annual turnover below RM500,000, and offering affordable financing options with interest rates as low as 3-3.5 per cent. 

Nivas added, “We need to empower our entrepreneurs, particularly those starting out, through targeted support schemes like the proposed ‘Start My Enterprise’ programme’.”

KLSICCI also called for a stronger focus on Malaysia’s position as a hub for integrative healthcare, suggesting budgetary allocations to promote traditional and complementary medicine.

“By integrating traditional medicine with modern healthcare practices, Malaysia can enhance its reputation globally and attract international patients,” Nivas elaborated. 

KLSICCI also urged the government to ensure inclusive policies that support all Malaysians in Anwar’s need-based affirmative economic policies which is one of the fundamental initiatives of the MADANI Economic framework. 

“We hope the suggestions put forth will be considered to ensure a brighter, more inclusive future for businesses and the economy,” Nivas said. 

The proposals were also forwarded to Treasury Secretary-General Datuk Johan Mahmood Merican and national budget director Datuk Shahrol Anuwar Sarman for further consideration.

-- BERNAMA