Budget 2025:MSMES Hope No New, Increase In Taxes

KUALA LUMPUR, Oct 15 (Bernama) -- The Malaysian Small and Medium Enterprises Association (SAMENTA) hopes that the government will refrain from introducing new taxes or imposing additional levies that could further reduce the competitiveness of the Micro, Small, and Medium Enterprise(MSME) sector.

 SAMENTA president Datuk William Ng instead urged the government to focus on helping the sector enhance its operations and manage 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 hope that the concerns of the MSMEs will be addressed in Budget 2025," he said in a statement.

The Laison Chairman of the Kedah and Perlis chapter of the Malaysia Entrepreneurs’ Development Association (PUMM), Leonm Tang Kai Zhe (rpt. Leonm Tang Kai Zhe) hoped that the government would offer special incentives for MSMEs in the 2025 Budget.

He said they include allowances for companies that employ degree and diploma graduates.

"The government has set a minimum wage rate of RM1,500 per month and many MSMEs are facing difficulties in paying.

“For diploma and degree graduates, their salary is more than RM1,500. So this puts more burden on small and medium-sized companies to employ them and may have to employ Sijil Pelajaran Malaysia (SPM) graduates," he told Bernama.

He said the proposal to provide allowance to MSMEs is only for a specific period,  like six months, just to help reduce the burden on companies that employ diploma and degree graduates.

Meanwhile, in Kelantan, the chairman of the Kelantan chapter of the Malaysian Malay Chamber of Commerce (DPMM), Wan Zulkifli Wan Abdullah, also hoped that the government would increase tax reduction incentives for MSMEs to use technology, invest in Environmental, Social, and Governance (ESG), and purchase halal products.

 He said the move would make it easier for entrepreneurs who have just started their business, are in the growth phase or still struggling to recover from the COVID-19 outbreak.

"We hope the government can provide more allocation and incentives in digital infrastructure such as high-speed internet and access to technology.

“In addition, the government can expand internet coverage and promote digital transformation among MSMEs through technical and financial assistance programs," he told Bernama recently.

The government, he said, could also provide incentives to MSMEs through the establishment of a special fund that offers low or zero-interest loans.

This fund should come with a simplified application and evaluation process, aimed at helping entrepreneurs in the sector, he added.

He said the government should protect local traders who pay taxes by regulating the influx of foreign traders from countries like Bangladesh, Pakistan, and Cambodia, as some of them do not pay business tax, such as those running barbershops, grocery stores, and fruit stalls.

Wan Zulkifli also called for the reintroduction of the Goods and Services Tax (GST) to improve the country’s revenue, thereby strengthening the economy and enhancing the well-being of the people.

 The 2025 Budget with the theme " "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