Budget 2023 a boost for SMEs.

Budget 2023 a boost for SMEs

1. SAMENTA welcomes the announcements made in Budget 2023 that would benefit SMEs, including the one-off grant of RM1,000 for all SMEs, a reduction of tax rate to 15% for the first RM100,000 taxable income, and the financing facilities made available via SemarakNiaga 2023.

2. While it is clear that much of the initiatives are with the upcoming election and micro enterprises in mind, the overall liquidity to be injected and the focus on automation and digitalisation would help support our recovery post-pandemic.

3. It would have been more effective to allow double deduction for investments into R& D, digitalisation, automation and ESG compliance, on top of financing facilities. Most SMEs are reluctant to invest substantially in plant and process upgrades due to the current political and economic uncertainty. As such, targetted financing facilities such as those announced will not make as much difference as a more complete package of budgetary intervention.

4. SMEs continue to be besieged with low productivity, which results in low profit margins. SAMENTA will continue to work with various government agencies to help our SMEs better protect their margins, improve their productivity and navigate the digital economy.

by Datuk William Ng, Chairman/Small & Medium Enterprises Association (SAMENTA) Malaysia. October 08, 2022 12:47 pm
Source: The Edge Markets. https://www.theedgemarkets.com/article/epf-investing-development-preleased-logistics-hub-klang. 8 October 2022.

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