ALMOST half of Malaysian small and medium enterprises (SMEs) registered double-digit sales or revenue growth in 2023.
Based on the Small and Medium Enterprises Association Malaysia’s (SAMENTA) latest annual survey, 40% of its total respondents reported 11% to 50% revenue growth; 4% respondents indicated growth of 31% to 50%; and 8% registered sales growth exceeding 50%, last year.
Meanwhile, 26% respondents reported a decrease in revenue of between 11% and 50% and 6% respondents indicated a reduction of more than 50%.
National secretary Yeoh Seng Hooi noted that 44% of respondents indicated higher growth. However, he said that those reported, declining revenue were still a cause of concern.
“The government should create a positive economic climate to increase consumer confidence in the domestic market with higher disposable income and purchasing power for consumers,” he said in a statement.
Commenting on the current business performance in 2024, 42% respondents reported a performance of good or excellent, which improved compared to 26% in the previous year.
About 56% of the respondents indicated fair or poor business performances, at 42% and 14% respectively.
Yeoh said confidence level has picked up compared to last year. However, the impact of the removal of the diesel subsidy and higher freight costs has yet to be seen across the board.
On business prospects in the next 12 months, the survey found that 50% of respondents projected good and excellent sentiments, higher compared to 38%, in the year prior.
The improved sentiments were followed by fair (36%), uncertain (6%) and poor at 8% which remained unchanged since last year.
“Around 44% of the respondents reported a fair to bad prognosis for 2025. The overall business senti- ment has improved with at least half reporting a favourable business climate in 2025,” Yeoh said.
For Budget 2025, SAMENTA expects lower corporate income tax for SME to 15% for the first RM500,000, increased matching grants for automation or digitalisation as well as higher government procurement in products and services (applicable to all SME).
At the same time, it foresees more support in environmental, social and governance compliance for fiscal and grants; streamlining and simplification of licensing applications, as well as an increase of soft loans for machinery and equipment.
The improved sentiments were followed by fair (36%), uncertain (6%) and poor at 8% which remained unchanged since last year.
“Around 44% of the respondents reported a fair to bad prognosis for 2025. The overall business senti- ment has improved with at least half reporting a favourable business climate in 2025,” Yeoh said.
For Budget 2025, SAMENTA expects lower corporate income tax for SME to 15% for the first RM500,000, increased matching grants for automation or digitalisation as well as higher government procurement in products and services (applicable to all SME).
At the same time, it foresees more support in environmental, social and governance compliance for fiscal and grants; streamlining and simplification of licensing applications, as well as an increase of soft loans for machinery and equipment.
Source: https://themalaysianreserve.com/2024/07/09/more-than-50-smes-register-double-digit-growth/