Kuala Lumpur, 10 October 2026 — SAMENTA has welcomed Budget 2027, describing it as an “SME Budget” and citing measures to ease cash flow pressures and lower operating costs for micro, small and medium enterprises (MSMEs).
SAMENTA National President Datuk William Ng also welcomed the declaration of 2027 as “Malaysia MSME Year” by Minister of Entrepreneur and Cooperatives Development, YB Steven Sim Chee Keong.
Three measures at the centre of the “SME Budget”
In a statement, Datuk Ng said the budget’s focus on MSMEs was reflected in three headline measures.
A RM57 billion financing and guarantee package for 2027, up from RM50 billion, anchored by RM32 billion in guarantee capacity through Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and the Credit Guarantee Corporation (CGC).
A one-percentage-point cut in corporate income tax for MSMEs, taking the preferential rate to 14% on the first RM150,000 of taxable income and 16% on income between RM150,001 and RM600,000. The cut is expected to return up to RM6,000 to more than 300,000 SMEs.
An exemption for SMEs from the revised RM2,000 minimum wage, which takes effect in June 2027. MSMEs recording annual sales below RM50 million are exempted so they have time to adjust their business models and raise productivity before absorbing the higher wage.
Budget 2027 is the fifth MADANI budget, with RM510 billion in total expenditure and investment — up from RM470 billion — and a fiscal deficit targeted at 3.3% of GDP.
Scaling the “Missing Middle”
SAMENTA also endorsed the ABCD Framework of the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), a strategy built on accelerating productivity, reducing bureaucracy, widening capital access and developing market access.
“SAMENTA also strongly endorses KUSKOP’s ABCD Framework. This framework offers a targeted roadmap to scale the ‘Missing Middle’, empowering domestic small businesses to modernise, integrate into high-value supply chains, and compete regionally,” Datuk Ng said.
He said SAMENTA, as Malaysia’s oldest and largest SME association, was committed to working closely with the Minister and KUSKOP to ensure the budget initiatives are implemented effectively.
Implementation is the test
Datuk Ng said priority should be given to expediting the disbursement of financing facilities, providing assistance for digital automation and facilitating access to export markets, with minimal bureaucratic hurdles.
“This is to ensure the full benefits of this ‘SME Budget’ are felt across our business community,” he said.
What else SAMENTA welcomed
In an earlier statement on 9 October, Datuk Ng also welcomed RM30 million channelled through the Malaysia Digital Economy Corporation (MDEC) to help 4,000 SMEs adopt artificial intelligence and automate operations; RM60 million for the Malaysia External Trade Development Corporation (MATRADE) and RM1 billion in export financing through Bank Pembangunan Malaysia Bhd (BPMB) to help SMEs scale their export footprint; and the proposed E-Commerce Bill to regulate foreign e-commerce platforms and cross-border sellers, which SAMENTA says will protect local jobs and restore fair competition.
Datuk Ng set out the association’s full Budget 2027 asks — on financing, e-invoicing, the minimum wage and public procurement — in an interview with BFM 89.9 on 9 October.
SAMENTA Welcomes Budget 2027 as an ‘SME Budget’
Kuala Lumpur, 10 October 2026 — SAMENTA has welcomed Budget 2027, describing it as an “SME Budget” and citing measures to ease cash flow pressures and lower operating costs for micro, small and medium enterprises (MSMEs).
SAMENTA National President Datuk William Ng also welcomed the declaration of 2027 as “Malaysia MSME Year” by Minister of Entrepreneur and Cooperatives Development, YB Steven Sim Chee Keong.
Three measures at the centre of the “SME Budget”
In a statement, Datuk Ng said the budget’s focus on MSMEs was reflected in three headline measures.
Budget 2027 is the fifth MADANI budget, with RM510 billion in total expenditure and investment — up from RM470 billion — and a fiscal deficit targeted at 3.3% of GDP.
Scaling the “Missing Middle”
SAMENTA also endorsed the ABCD Framework of the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), a strategy built on accelerating productivity, reducing bureaucracy, widening capital access and developing market access.
“SAMENTA also strongly endorses KUSKOP’s ABCD Framework. This framework offers a targeted roadmap to scale the ‘Missing Middle’, empowering domestic small businesses to modernise, integrate into high-value supply chains, and compete regionally,” Datuk Ng said.
He said SAMENTA, as Malaysia’s oldest and largest SME association, was committed to working closely with the Minister and KUSKOP to ensure the budget initiatives are implemented effectively.
Implementation is the test
Datuk Ng said priority should be given to expediting the disbursement of financing facilities, providing assistance for digital automation and facilitating access to export markets, with minimal bureaucratic hurdles.
“This is to ensure the full benefits of this ‘SME Budget’ are felt across our business community,” he said.
What else SAMENTA welcomed
In an earlier statement on 9 October, Datuk Ng also welcomed RM30 million channelled through the Malaysia Digital Economy Corporation (MDEC) to help 4,000 SMEs adopt artificial intelligence and automate operations; RM60 million for the Malaysia External Trade Development Corporation (MATRADE) and RM1 billion in export financing through Bank Pembangunan Malaysia Bhd (BPMB) to help SMEs scale their export footprint; and the proposed E-Commerce Bill to regulate foreign e-commerce platforms and cross-border sellers, which SAMENTA says will protect local jobs and restore fair competition.
Datuk Ng set out the association’s full Budget 2027 asks — on financing, e-invoicing, the minimum wage and public procurement — in an interview with BFM 89.9 on 9 October.
Listen to “Budget 2027: Can It Pull SMEs Out of Survival Mode?” on BFM 89.9 →
SAMENTA — the first association of small and medium enterprises in Malaysia — has served Malaysian SMEs since 1986.
Sources
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