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SME association commends Budget 2022 for being pro-growth and supportive of SMEs

By November 16, 2021November 17th, 2021No Comments

KUALA LUMPUR (Oct 29): Small and Medium Enterprises Association Malaysia (Samenta) has commended Budget 2022 for being pro-growth and timely in supporting businesses, especially small and medium enterprises (SMEs), in their post-pandemic recovery.

The budget is also seen as clearly supportive of SMEs and sets the right tone for their recovery, said Samenta chairman Datuk William Ng in a statement.

In particular, Ng said the association is glad that the government has heeded its plea for a wage subsidy for rehiring workers. “This is crucial as most SMEs who are on a recovery mode are cash-strapped to procure raw materials and to re-hire workers,” he said, referring to wage subsidies provided under the JaminKerja initiative.

Under the initiative, employers who hire jobless Malaysians will get a subsidy of 20% of the workers’ salaries for the first six months and another 30% for the following six months, subject to jobs that offer a remuneration of at least RM1,500.

The association is also happy that the government has announced measures such as instalments for corporate income tax, as well as the additional RM40 billion worth of financing package for entrepreneurs from small to big businesses under the SemarakNiaga initiative.

“Most importantly, we are relieved that there are no new taxes imposed on businesses at a time when most businesses are struggling and are only now getting to their feet,” Ng said.

Meanwhile, the association remains hopeful that its proposal for 30% of government procurement to be allotted to SME vendors will still be considered by the government for implementation in 2022. “This will not involve additional budget or funds on the part of the government, as the procurements are for products and services that the government will be requiring anyway,” Ng added.

See more Budget 2022 highlights here.
Edited by Tan Choe Choe