KUCHING (Sept 29): The federal government should increase financial support and incentives for small and medium enterprises (SMEs) to promote growth and innovation, said SME Association of Sarawak president Jordan Ong.
The financial support and incentives can include grants, low-interest loans and tax incentives, suggested Ong when commenting on the association’s wish list for the national budget 2024.
“The government should also locate funds for digitalisation initiatives, trainings and resources to help SMEs embrace digital technologies, such as e-commerce platforms, digital marketing, and online payment systems,” he said.
Facilitating access to domestic and international markets through trade promotions programmes, export incentives and assistance, Ong added, is equally important to meet international standards and certifications for the products.
“The government can also streamline and simplify regulatory processes to reduce the administrative burden on SMEs, making it easier to start and run businesses.”
Ong’s other suggestion is to reduce corporate income tax rates or tax breaks for SMEs investing in research and development (R&D) activities.
Moreover, Ong said, SMEs should be encouraged to adopt sustainable business practices through incentives, such as tax benefits for eco-friendly initiatives and the adoption of green technologies.
He further said the government can advocate for greater networking opportunities and collaborations among SMEs, industry associations, and research institutions to share knowledge and resources.
More programmes specifically designed to support women and minority entrepreneurs in starting and growing their businesses should also be organised, he stressed.
Besides, Ong pointed out, it is necessary to facilitate market access and distribution channels for SMEs involved in agriculture and indigenous crafts and products.
“Lastly, the government can establish mechanisms for monitoring the impact of budget allocations and initiatives on SMEs and thus, ensuring accountability and effectiveness,” he said.
Source: https://www.theborneopost.com/2023/09/29/increase-financial-support-incentives-for-smes-to-promote-growth-innovation-association-urges-putrajaya/