Image credit: KLSCCCI
KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Accim) hopes the government will provide relief assistance and tax break to ease businesses' cashflow problem.
Also high on Accim's 2021 Budget wish list is for the government to introduce other initiatives to reduce operating costs, protect jobs and enhance consumer spending while helping businesses and workers develop new capabilities for long-term growth.
Accim president Tan Sri Datuk Ter Leong Yap said its think tank, Socio-Economic Research Centre (SERC), had obtained feedback and suggestions from its members concerning the immediate issues faced by businesses in revitalising their business in coping with the third wave of Covid-19.
Ter said Accim had submitted a list of proposed measures and initiatives to the government for consideration to mitigate the anticipated larger economic and social impacts from a prolonged pandemic.
"These cover easing the cost of doing business, taxation, continued provision of credit and financial facilities, enhancing consumer spending, accelerating the adoption of digitalisation, creating jobs, reskilling and upskilling of manpower, reviving tourism and enhancing exports," he said in a statement today.
Accim said the government should provide continued support for businesses on 3Cs (Cash flow, Cost and Credit) to help SME to get back on feet firmly amid lingering uncertainty about the pace and strength of economic recovery.
The government should also consider extending the wage subsidy program (WSP) for another six months, give a waiver on foreign workers levy in 2021 or a 50 per cent reduction in foreign levy and focusing on investing in "new smart infrastructure" used for high-tech purposes (renewable energy, climate change, eco-green).
Accim also proposed for ease of access to loan facilities.
"It is observed that some of the loan schemes have low utilisation rates. Increase the size and amount of loan of some existing loan schemes, especially for micro-enterprises. A fast approval procedure and shorten the number of working days required to approve the loan applications," it said.
It also urged the government to enhance consumer spending by extending the voluntary reduction in EPF's employee contribution rate for 2021, giving personal special relief of RM3,000 to all taxpayers for year of assessment 2020 and 2021 and extend the RM30 public transport subsidy for another year to December 2021.
Source: https://www.nst.com.my/business/2020/10/634120/provide-tax-reliefs-ease-businesses-cashflow-setback-accim