PETALING JAYA: In presenting the first budget of his Unity Government in February themed Developing Malaysia MADANI, Prime Minister Datuk Seri Anwar Ibrahim said the government is committed to protecting the livelihood of the rakyat, upholding integrity, and enhancing a caring and compassionate society.
“Belanjawan MADANI reflects the principles of accountability and a pure value system that can address current challenges, including the highly uncertain global economic situation,” he said.
Micro and small and medium enterprises (SMEs), among the hardest hit during the Covid-19 pandemic, came under the spotlight as the government announced a raft of measures to nurse them back on their feet.
“There is great importance placed on micro, small and medium enterprises (MSME) and how they contribute to the people, therefore the government continues to support the viability of businesses and their potential to grow,” said Anwar who is also the Finance Minister.
“The government is aware that there are still businesses that are affected by the pandemic, especially MSMEs. Belanjawan 2023 will ensure local MSMEs are once again competitive and able to increase their business capacity because various facilities will be made available to support them.”
The government has set out a comprehensive list of measures to help encourage business owners and entrepreneurs to increase capacity and provide relief.
As one of the many incentives for MSMEs, the government lowered the rate of taxable income to 15 per cent from 17 per cent for the first RM150,000 in revenue. The rate for the remaining taxable income will be maintained at 17 per cent and 24 per cent respectively.
This would benefit more than 150,000 MSMEs and involve tax savings of up to RM3,000 per business to ease their financial burden.
MSME entrepreneurs will be provided with access to financing facilities through Bank Negara Malaysia (BNM), Bank Simpanan Nasional (BSN) and Tekun Nasional (TEKUN), with funds totalling RM1.7 billion.
The funds will be used specifically to benefit women and youth entrepreneurs from underprivileged backgrounds.
For SMEs, BNM is providing almost RM10 billion to reduce the financial burden they face and to encourage their business development.
Funds under BNM are aimed to provide financing at reasonable costs for SMEs in all economic sectors. Some funds have also been enhanced to provide relief and to support the recovery of SMEs.
The assistance will be channelled through participating financial institutions comprising banks, prescribed development financial institutions and the Credit Guarantee Corporation Malaysia Berhad (CGC).
Along with the RM10 billion provided by BNM, Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) will guarantee up to RM20 billion in SME loans.
In the spirit of inclusivity under Malaysia MADANI, SMEs in all economic sectors will be able to secure government guarantees of 80% to 90%.
Any credit company with a valid money lending license under the Ministry of Local Government Development will be eligible to participate in the scheme and, it is open to any cooperatives registered with the Malaysia Co-operative Societies Commission (SKM).
The decision to expand guarantees to financing by non-banking financial institutions is made to specifically benefit small businesses that lack the funds to apply for loans.
Small and medium businesses that are struggling are urged to seize the opportunity to benefit from the financial schemes in Belanjawan 2023.
Interested individuals who wish to gather more information or apply for benefits can visit belanjawan.mof.gov.my/manfaat/.
Belanjawan 2023 provides countless benefits to support SMEs who suffered throughout the Covid-19 pandemic.
Other than tax reductions and guarantees on loans, the Government has implemented subsidy schemes for micro, small, and medium enterprises (MSMEs) to help them compete again post-pandemic.
The subsidy programmes will be monitored by the Unit for the Implementation and Coordination of National Agencies on Economic Stimulus Package (Laksana).
The government has always prioritised the interest of MSMEs and one way of achieving this is through subsidies. They are important to help MSMEs get back on their feet and be competitive post-pandemic.
Through Belanjawan 2023 and other programmes, the government will provide various types of subsidies to a wide range of sectors.
The first subsidy provided will be targeted towards exporters through the Exporters’ Development Incentive Scheme (SIP2) which subsidises financing rates by 1.5% for financing of up to RM 10 million for a tenure of seven years.
Wages and training fees are mostly subsidised for employment-related and upskilling and reskilling programmes. Programmes like Kerjaya Madani and Program Daya Kerja will offer wage subsidies and incentives for differently abled persons, the hardcore poor, paroled individuals, and other targeted groups.
There will also be incentives given to employers who have hired graduates from technical and vocational education and training (TVET) backgrounds through employment transition (Kerjaya TVET).
An electric bill subsidy will be implemented, which maintains the current electric tariff for all domestic users and SMEs, but large corporations other than those in the food and agriculture sector will be increased.
A subsidised diesel control system will be implemented by the government to reduce leakages, and there will be increased enforcement efforts by government agencies and industry players.
The implementation will be carried out in stages and focus on ensuring an affordable cost of living, especially for those in the B40 group.
The government will continue to upgrade the cooking oil stabilization system (eCOSS) which will manage the subsidy quota and monitor sales of cooking oil across all supply chains.
Furthermore, the Malaysian government devised a comprehensive strategic plan which focuses on strengthening communications infrastructure, cybersecurity, and fostering the growth of the digital economy.
The Malaysia Digital Economy Corporation (MDEC) under the Ministry of Communications and Digital will be at the forefront of driving Malaysia’s digital economy forward and its purpose is to accelerate the country’s digital transformation.
Through Malaysia Digital (MD), a national strategic initiative launched in 2022 to succeed Multimedia Super Corridor (MSC) Malaysia, we have identified nine promoted sectors presenting high growth potential, opportunity, and importance in driving Malaysia’s next transformation in the digital economy.
Cybersecurity is recognized as a vital tech enabler and MDEC has prioritised “Cybersecurity and Data Privacy” in the formation of MDEC’s Environmental, Social and Governance (ESG) Roadmap.
Cybersecurity plays an important role in Malaysia’s digital economy development, especially in fostering trust, driving innovation, and sustaining the growth of the digital landscape.
The digital economy contributes 22.6% to the country’s GDP and is projected to grow to 25.5% by 2025. Cybersecurity failure will derail the objectives of the national Digital Economy blueprint.
It is crucial to approach this holistically at the national level via the Malaysia Cybersecurity strategy.”
MDEC will take Malaysia’s Digital Economy forward by drafting four initiatives to develop the Malaysian cybersecurity industry.
These initiatives include nurturing home-based cybersecurity companies, driving SME awareness programmes, creating a cybersecurity workforce, and collaborating with key stakeholders of the digital economy by formulating progressive policies and industry best practices.
To nurture home-based cybersecurity companies, MDEC, in collaboration with National Cyber Security Agency (NACSA), will initiate the National Cybersecurity Innovation Challenge Programme (Cyber100).
Awareness is also provided by MDEC through programmes such as Digital Up, a reskilling and upskilling incentive, and Let’s Learn Digital, an initiative that provides free training for digital skills.
Source: https://www.thesundaily.my/spotlight/unlocking-sme-growth-under-belanjawan-2023-OA11339351