KUALA LUMPUR: The government is committed to simplifying regulations and reducing bureaucratic burdens to foster a conducive business environment, particularly for micro, small, and medium enterprises, said Deputy Finance Minister Lim Hui Ying.
Lim emphasised the importance of creating a level playing field for businesses of all sizes.
“We are committed to simplifying regulations and reducing bureaucratic burdens to create a level playing field for businesses of all sizes,” she said at SIDC Business Foresight Forum 2024 themed “Investing in MSMEs for Impact” here today.
Lim said talent development is also a key priority for the government. “We are investing in education and training programmes to equip our workforce with the skills needed to meet the demands of the modern economy. By investing in our people, we are investing in the future of our MSMEs.”
The government understands that MSMEs face numerous challenges, including access to finance, market access, and talent development, she said. “Their growth and survival are often threatened by a range of risks, such as climate change, business interruptions, and limited access to capital markets.”
She added that the government has established a variety of grants and initiatives to help MSMEs overcome these hurdles. “Some of the targeted policies and programmes include tax rebates to help newly incorporated SMEs get off the ground.”
Citing examples, Lim said the StartUp SME Tax Rebate offers a 20% tax rebate on the first RM20,000 of chargeable income for the first three consecutive years while the SME Special Deduction allows SMEs to claim a special deduction of 30% on qualifying expenditures incurred to automate their business operations.
Additionally, SMEs that install electric vehicle charging facilities at their premises can claim a tax deduction of up to RM2,500 for installing, renting and purchasing charging stations until 2027.
Another incentive is the Investment Tax Allowance, Lim said, which enables SMEs to claim a deduction of up to 60% on qualifying capital expenditures incurred for business expansion.
“These tax reliefs – ranging from startup rebates to special deductions – are designed to help SMEs grow and thrive in today’s competitive landscape,” said Lim.
She underscored that Malaysia’s economic growth is inextricably linked to the success of the country’s SMEs.
“These enterprises are the backbone of our economy, driving innovation, job creation, and social progress. The government recognises the critical role MSMEs play and is committed to creating an environment where they can thrive and contribute fully to the nation’s prosperity,” she said.
Source: https://thesun.my/business-news/govt-committed-to-creating-conducive-environment-for-doing-business-in-malaysia-BC12895589