SME Tax Cut To Provide Up To RM6,000 In Savings -- SAMENTA
KUALA LUMPUR, Oct 9 (Bernama) -- The Small and Medium Enterprises Association of Malaysia (SAMENTA) welcomes the one per cent corporate income tax reduction for micro, small and medium enterprises (MSMEs) under Budget 2027, which is expected to provide up to RM6,000 in tax savings to over 300,000 SMEs.
Its national president, Datuk William Ng, said reducing the preferential corporate tax rate to 14 per cent on the first RM150,000 of taxable income and 16 per cent on the RM150,001 to RM600,000 bracket will provide businesses with immediate liquidity for reinvestment.
He also welcomes the decision to exempt SMEs with annual turnover below RM50 million from the new RM2,000 minimum wage mandate taking effect in June 2027.
“This breathing space allows smaller firms to build productivity and automate before absorbing higher minimum wage,” he said in a statement.
Ng also lauded the government’s commitment to table the E-Commerce Bill to regulate foreign e-commerce platforms and cross-border sellers, safeguarding local jobs and restoring fair competition for Malaysian businesses.
SAMENTA also supports expanding total financing and guarantee facilities from RM50 billion to RM57 billion, anchored by RM32 billion in guarantee capacity from Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC), which addresses access to credit for SMEs with little or no collateral.
Ng said the RM30 million allocation to the Malaysia Digital Economy Corporation (MDEC), targeting 4,000 SMEs for artificial intelligence (AI) adoption and operational automation, will accelerate grassroots technology adoption.
“The allocation of RM60 million for the Malaysia External Trade Development Corporation (MATRADE) and RM1 billion in Bank Pembangunan Malaysia Bhd (BPMB) export financing are timely to support SMEs in scaling their export footprint.
Meanwhile, Standard Chartered Malaysia interim chief executive officer (CEO), head of coverage and chief financial officer Mushahid Syed said the bank supports the additional RM5 billion financing facility for SMEs affected by the West Asia conflict and RM6.6 billion in microfinancing in 2027 in Budget 2027.
He said the bank commends the RM2.1 billion that will be channelled from the New Industrial Master Plan 2030 Strategic Co-Investment Fund, Kumpulan Wang Persaraan (Diperbadankan) (KWAP)’s Dana Pemacu and Khazanah Nasional’s Mid-Tier Company Fund to strengthen mid-tier companies in sectors such as electrical and electronics, digital technology, aerospace and medical devices, alongside other financial and tax incentives to support SME growth.
Mushahid also noted support for Bumiputera businesses, including RM7.5 billion in reserved government procurement for G1-G4 contractors, RM1 billion in financing through the Bumiputera Agenda Steering Unit (TERAJU), RM2 billion to strengthen Bumiputera companies, and RM250 million under Dana Ciptawan to support mid-sized Bumiputera companies, along with tax cuts and grants.
Technology financing company ICT Zone Asia Berhad lauded the Budget 2027 measures to lower the cost of technology investment and speed up artificial intelligence (AI) adoption among SMEs, and called for device rental and subscription to qualify alongside outright purchase as support programmes are rolled out.
Managing director and CEO Tommy Lim Kok Kwang said the measures announced in Budget 2027 made technology cheaper to own, but for many small businesses, the hurdle remains paying upfront.
“A capital allowance helps at year-end; a subscription spreads the payments from the first month and includes maintenance and support. If support programmes let businesses rent as well as buy, each can choose what suits its cash flow,” he said.
-- BERNAMA