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KUALA LUMPUR: Digital tax waivers and SME (small and medium-sized enterprises) digitalisation are among the items on Foodpanda Malaysia's wish list for the upcoming 2021 Budget.

Foodpanda managing director Sayantan Das said the delivery services provider also hoped forgovernment assistance in upskilling gig economy workers.

"A recent report released by Deloitte titled 'The Next Wave: Emerging Digital Life in South and Southeast Asia' stated that e-commerce contributed about US$28 billion to Malaysia's gross domestic product in 2018.

"The report also stated that Malaysians have the second highest penetration rate of smartphones (83 per cent) in South Asia and Southeast Asia and about 80 per cent of Malaysia's population are active Internet users. Mobile phone use is likewise relatively high.

"Hence, the government should eliminate digital taxes for next year to encourage consumers to spend online and at the same time enable companies to reinvest in Malaysia," he told the New Straits Times.

He said incentives should also be given to local entrepreneurs and micro-enterprises to digitise their businesses.

"The government needs to assist and support platforms in digitising businesses such as matching contribution campaigns or providing grants to platforms to digitise the SMEs. They should also look into removing the SSM (company registration) fees for SMEs and micro-businesses looking to enter the food and beverage space as well as long-term subsidy schemes to boost the digital presence of local Malaysian F&B brands."

He suggested providing courses to upskill and upgrade gig economy workers as well as a year's Social Security Organisation sponsorship for p-hailing riders.

"They could also offer loan support for p-hailing equipment such as motorbikes."

Bungkusit co-founder and chief public relations officer Azhar Zein suggested that the government allow the public to withdraw their Employees Provident Fund (EPF) savings, which will indirectly help delivery services.

"I understand that the government lacks funds as the tax base has decreased. When income decreases, expenditure decreases for the government. I do feel that the government should allow some withdrawal from the EPF Account 1 because that can inject liquidity into the market.

"People have money in their Account 1, so if the government allows a certain amount of withdrawal from Account 1, for example RM10,000 or RM20,000, that will help businesses."

He said the withdrawal would especially help people in the B40 and M40 categories to run their households while they ride out the situation.

"Where else are they going to get money? How long can the government keep subsidising its people? When they have the money, there will be liquidity in the market, then they are able to use these services.

"During the early stages of the Movement Control Order, the government pumped in a lot of money to assist people through initiatives such as the Prihatin aid. Because of that liquidity, many people used these services.

"What is happening now is that the public's purchasing power is limited. When they buy less, the less they use services such as ours. The subsequent domino effect is how we are affected."

Source: https://www.nst.com.my/news/nation/2020/11/637242/gig-dy-gig-economy-firms-share-budget-2021-wish-list