Image credit: News Straits Times

The provision under Budget 2021 to increase the disposable income will benefit the small and medium enterprises (SMEs) in the country.

Small and Medium Association Malaysia (Samenta) national secretary S.H. Yeoh said the lowering of personal income tax by 1% for those earning between RM50,000 and RM70,000 a year would boost purchasing power.

“We also welcome the move to extend the loan moratorium for micro-businesses for three more months starting Jan 1, 2021.This should ease the burden of micro-business owners.

“The extension of wage subsidy to retailers and operators of tourism activities for another three months will also be a big help.

“The RM1.9bil of soft loans to SMEs will help to ease their cash flow too.”

He said Samenta welcomed the move to promote local products online.

“We see the RM150mil allocation for the SME Digitalisation and Automation Grant Scheme as a boost for e-commerce and should open up a fresh opportunities.”