Image credit: Malay Mail
KUALA LUMPUR: There are plans for tax exemptions in Budget 2025 to encourage small and medium-sized enterprises and micro, small, and medium-sized enterprises to adopt technology, particularly artificial intelligence, to optimise their operations, said Digital Minister Gobind Singh Deo.
Gobind stated that they will get clearer indications on the specific measures that can be implemented by the end of this month or early next month, subject to approval by the Ministry of Finance.
“We had a roundtable session yesterday (Wednesday). The discussion focused on how we can inspire or attract more SMEs and MSMEs to adopt technology, such as AI, to optimise their businesses. Taxation ideas were brought forward, and we’re also considering other forms of incentives. Ultimately, it comes down to how quickly we can get everyone on board,” he told the media after the signing of a memorandum of understanding between 42 Malaysia and MyDigital Corporation today.
The minister highlighted that nearly 97% of businesses in Malaysia are SMEs, and by getting them on board with AI and other advanced technologies, the country could see significant growth in its digital economy.
“First and foremost, we need to create awareness. After creating awareness, we need to ensure that people adopt and use these technologies to their benefit,” he said.
Gobind also addressed concerns regarding talent development.
“We need to build new mechanisms for rapidly developing talent. Traditional methods, such as three-year degree programmes, are no longer sufficient. We must create quick, scalable modules that allow individuals to upskill and reskill in a matter of months,” he explained.
Additionally, Gobind stressed the importance of upskilling and reskilling workers while they are still employed to prepare for future changes. “Instead of waiting for job losses due to technology, we should work with businesses to integrate upskilling into their operations to ensure workers are ready to transition into new roles as traditional jobs evolve.”
42 Malaysia, the country’s first tuition-free coding school launched by Sunway Group, has embarked on a strategic partnership with MyDigital Corporation to collaborate in developing Malaysia’s digital talent landscape, particularly in the fields of cloud computing, cybersecurity and artificial intelligence.
This collaboration will see both parties leveraging each other’s strengths to address digital talent shortage in Malaysia.
Gobind pointed to 42 Malaysia’s goal to offer sustainable professional integration into the labour market.
“This aligns with the government’s goal to create a digitally-savvy and future-proof workforce, and to dramatically scale up our ability to create high-quality talent,” he said, adding that digital talent is crucial in an age where AI is projected to affect almost 40% of jobs around the world, displacing some and complementing others.
“Take for example the cyber security sector, where Malaysia needs at least 25,000 workers by 2025. Currently, there are 13,000 workers in the field, with a shortage of 12,000 workers,” said Gobind.
Source: https://thesun.my/business-news/tax-exemptions-to-encourage-smes-msmes-to-adopt-technology-in-the-pipeline-gobind-EN12866156