Malaysia’s 2022 budget should include measures to help SMEs recover

MEF president Datuk Dr Syed Hussain Syed Husman said the budget for next year should focus on assisting micro, small and medium enterprises (MSMEs), especially the micro businesses, to get back on their feet. MSMEs make up more than 98% of all businesses in Malaysia, and there are more than 650,000 micro enterprises. 

Helping MSMEs would help kick start the country’s economic recovery, reopen economic sectors and consequently enable businesses to create more jobs, he said. “This will ensure employment to those who lost their jobs during the lockdowns, which in turn will increase their purchasing power.” 

Currently, the purchasing power among domestic consumers is constrained due to loss in employment, reduction in income and strict adherence to standard operating procedures (SOPs), he added. 

In addition, he urged for additional wage subsidy and zero-interest loan moratorium, so that employers could continue with operations and retain employees. 

READ: Malaysia to focus on job and income recovery in 2022 budget

To further support businesses, the budget should have incentives such as lower taxes, lower Sales and Services Tax (SST), cash or lump sum grants to businesses like what the Sarawak government did by giving RM10,000 (US$4,806) to all businesses registered there. More aid for businesses is also required, such as rental subsidy and utility subsidy, he said, according to The Malaysian Reserve.