ACCCIM Calls For Targeted Tax Measures In Budget 2026 To Boost SME Productivity, Innovation
KUALA LUMPUR, Sept 4 (Bernama) -- The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has called for targeted tax measures in Budget 2026, including corporate income tax rebates for small and medium enterprises (SMEs) and a higher chargeable income threshold of RM1 million for the SME preferential 15 per cent rate.
These measures can help free up resources for reinvestment in skills, productivity and innovation, it said in a statement to give the findings of its latest half-yearly Malaysia’s Business and Economic Conditions Survey (M-BECS).
In the survey covering business performance for January-June 2025 (1H 2025) and expectations for July-December 2025 (2H 2025), respondents listed “SMEs’ financing and capacity building” as Budget 2026’s main priority. Over half (56.3 per cent) of the respondents named this as the focus area.
“Tax-related measures also feature prominently, with tax credits and investment incentives (55.9 per cent) as well as conducive tax reforms (53.1 per cent) ranking high among areas businesses want the government to prioritise,” ACCCIM said.
ACCCIM president Datuk Ng Yih Pyng emphasised that maintaining Malaysia’s competitive corporate income tax rate is vital to narrow the tax gap with regional peers.
“Thailand and Vietnam each has a 20 per cent corporate tax rate, Indonesia’s current tax rate is 22 per cent and is considering a reduction to 20 per cent, while Singapore’s tax rate is maintained at 17 per cent,” he said.
Ng said that in making Malaysia’s tax and regulatory systems more competitive and business-friendly, the government can implement reforms that simplify compliance, reduce costs, and enhance transparency to boost Malaysia’s cost competitiveness on the world stage while driving innovation and investment.
Meanwhile, artificial intelligence (AI) and digital infrastructure emerged as the top priority for Budget 2026 spending and investment, as voted by 44 per cent of respondents.
This underscores the urgency of equipping businesses, particularly SMEs, with AI tools to remain competitive, the statement said.
According to ACCCIM, stronger support mechanisms are required to address digital adoption barriers, such as skills shortages, funding gaps and limited access to technology.
The organisation suggested enhancing existing programmes such as the Digital Grant, including providing higher allocation and allowing multiple claims instead of the current one-time limit, to deliver more practical support for SMEs.
The latest M-BECS survey was conducted between July 10 and Aug 11, 2025, and attracted 777 responses.
-- BERNAMA