KUALA LUMPUR, Oct 8 — The Small and Medium Enterprises Association of Malaysia (Samenta) has urged the government to ensure Budget 2026 is pro-SME and growth-oriented, warning that new taxes or compliance burdens could threaten the resilience of local businesses.
In a statement yesterday, Samenta highlighted that many SMEs are still grappling with tight liquidity and rising costs, with seven in 10 having less than six months of cash reserves.
“Budget 2026 must focus on cash flow relief and competitiveness, rather than new revenue measures.
“Any form of new or expanded tax would further erode the resilience of our SMEs,” said Samenta national president, Datuk William Ng.
Citing the association’s recent SME Outlook Survey, Ng noted that while 65 per cent of SMEs believe the economy is on the right track, financial pressures remain high.
He called on the government to expand access to affordable financing, particularly through credit guarantee schemes and revenue-based or unsecured lending, to help SMEs operate without heavy collateral requirements.
Samenta also urged incentives for intra-Asean trade, pointing out that trade within the region remains around 21 per cent, despite Malaysia’s close proximity to its neighbours.
“We call on the government to provide tax incentives for expenses related to developing intra-Asean markets and supply chains.
“This will encourage SMEs to invest in regional partnerships, joint ventures, and export networks,” Ng said.
The association outlined additional priorities for Budget 2026, including support for small-scale automation and digitalisation, ESG adoption incentives, and regional balancing to ensure SMEs in the East Coast, Sabah, and Sarawak have equal access to infrastructure, financing, and training.
“Budget 2026 must help SMEs move from survival to competitiveness, and from being suppliers to becoming innovators and regional players.
“We don’t need more one-off grants; we need an ecosystem that rewards innovation, digitalisation, and regional integration,” Ng emphasised.
Samenta said it is ready to work with the government to ensure Budget 2026 policies have real impact on the ground.
Source: https://www.malaymail.com/news/malaysia/2025/10/08/samenta-calls-for-pro-sme-budget-2026-no-new-taxes-focus-on-competitiveness-and-asean-trade/193834