SME Malaysia Calls For Outcome-driven Budget 2027 To Build Global Malaysian Companies
KUALA LUMPUR, Aug 21 (Bernama) -- The SME Association of Malaysia (SME Malaysia) has called for Budget 2027 to focus on measurable outcomes, not merely grants, financing and incentives, with success judged by productivity, investment, growth and competitiveness.
In its Budget 2027 Proposal, the association said small and medium enterprises (SMEs) face rising labour, utilities, financing, taxation and compliance costs while investing in digitalisation, automation, artificial intelligence (AI), environmental, social and governance (ESG) readiness and workforce capabilities.
In a statement today, SME Malaysia proposed a clear development pathway for Malaysian SMEs, from surviving and formalising their businesses to transforming, scaling and ultimately competing in global markets.
The association’s national president, Dr Chin Chee Seong, and National Council Member Prof Anthony Dass said Malaysia now has a broad range of SME support programmes, but the priority is to better coordinate and simplify access to these programmes while ensuring they deliver measurable business outcomes.
It said the effectiveness of support from Budget 2029 should be progressively measured through indicators such as SMEs actually receiving support, approval and disbursement times, automation and AI adoption, productivity gains, private investment and domestic direct investment (DDI), supplier development, domestic procurement, commercialisation and exports.
SME Malaysia also called for a cumulative SME cost and regulatory impact assessment covering labour, utilities, financing, the Sales and Service Tax (SST), e-Invoicing, licensing and compliance.
It said that given current cost pressures, any further increase to the current RM1,700 minimum wage should be deferred while productivity, automation, skills and business expansion are strengthened.
Other proposals include an SME life-cycle financing and investment framework combining grants, guarantees, debt, equity, co-investment and private capital; stronger foreign direct investment (FDI) spillovers through local procurement, technology and talent transfer; integrated support for automation, AI, skills and ESG; and stronger support to help SMEs move from research and development (R&D) through commercialisation to business scale-up.
SME Malaysia also proposes an integrated SME development gateway that gives each business a single profile, diagnostic assessment and tailored development pathway to connect it with the support it needs.
The association said Budget 2027 should ultimately build Malaysian companies that can compete regionally and globally.
-- BERNAMA