KUALA LUMPUR: The government is committed to fostering an environment where micro, small and medium enterprises (MSMEs) can thrive and fully contribute to Malaysia’s prosperity, said the Ministry of Finance (MoF).
Deputy Minister Lim Hui Ying said the government recognises the critical role of MSMEs as the backbone of the nation’s economy, driving innovation, job creation and social progress.
“The government is a steadfast partner in the journey of our MSMEs. We believe that by working together, we can create a thriving MSME ecosystem that fuels Malaysia’s economic prosperity,“ she said in her keynote address at the Securities Industry Development Corporation Business Foresight Forum 2024 today.
Lim said the government has established various grants and initiatives to help MSMEs overcome challenges such as access to finance, market access and talent development.
“The growth and survival of businesses are often threatened by risks such as climate change, business interruptions and limited access to capital markets,“ she said.
To address these challenges, the government offers targeted policies and programmes to support MSMEs in overcoming obstacles and gaining a foothold.
Among the policies are the StartUp SME Tax Rebate, which offers a 20 per cent rebate on the first RM20,000 of chargeable income for the first three consecutive years, and the SME Special Deduction, which allows Malaysian SMEs to claim a 30 per cent deduction on qualifying expenditures incurred to automate their operations.
Additionally, SMEs that install electric vehicle charging facilities at their premises can claim a tax deduction of up to RM2,500 for installing, renting, or purchasing charging stations until the Year of Assessment 2027.
Another significant incentive is the Investment Tax Allowance, which provides tax relief, allowing SMEs to claim a deduction of up to 60 per cent on qualifying capital expenditures incurred for business expansion.
Furthermore, the government is committed to simplifying regulations and reducing bureaucratic burdens to create a level playing field for businesses of all sizes.
Lim added that talent development is also a key priority, with the government investing in education and training programmes to equip the workforce with the skills needed to meet the demands of the modern economy.
