Measures to ease SME cash flow called for in Malaysia’s Budget 2022
The SME Association of Malaysia is calling on the government to focus on measures to ease the cash flow of SMEs in the upcoming Budget 2022.
“Under Budget 2022, the government should provide tax-free incentives for entrepreneurs, reduce SME tax to 10 per cent from 17 per cent, and reduce the corporate tax rate for the first RM$1 million taxable income,” SME Malaysia president Datuk Michael Kang Hua Keong told Bernama.
He added that businesses are not seeking profit, but are instead looking at cash flow continuity and survival, especially in industries hit hard by the pandemic, like tourism, film industry, entertainment venues, sports, private education and enrichment centres.
“Malaysian SMEs are facing severe cash flow problems and they are awaiting government aid. Moreover, digital transformation has become even more important for small businesses since the COVID-19 outbreak,” he said.
“As businesses look to adjust to the rapidly changing environment, they need support from the government on the way to go forward with digitalisation,” he added.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has recently said that the budget will give attention and assistance to all sectors, including also those badly hit, such as tourism, retail, as well as support for SMEs.
The country’s Budget 2022 will be tabled in Parliament on October 29.