Kuala Lumpur:The Federation of Malaysian Manufacturers (FMM) has announced that the increase in total loan facilities and financing guarantees to RM57 billion by 2027 is set to enhance businesses' access to financing and meet their investment needs.

According to BERNAMA News Agency, FMM President Jacob Lee Chor Kok detailed that the facilities include RM32 billion in guarantees via Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC). The expansion of SJPP coverage to mid-tier companies across all sectors, a higher guarantee limit of RM50 million, and a RM1 billion allocation in guarantees for local companies' expansion through mergers and acquisitions are expected to bolster investment, business growth, and industrial consolidation.

Additionally, FMM has welcomed a reduction in income tax rates for small and medium enterprises (SMEs) by one percentage point. This reduction applies to the first RM150,000 of chargeable income at 14 percent and the next RM450,000 at 16 percent, potentially providing tax savings of up to RM6,000 per eligible enterprise.

The review of the reinvestment allowance is anticipated to motivate existing manufacturers to reinvest in automation, advanced technology, modernization, and capacity expansion. This initiative is critical for enhancing industrial competitiveness and generating higher-value employment.

Furthermore, FMM has expressed support for the RM60 million allocation to the Malaysia External Trade Development Corporation aimed at strengthening Malaysian companies' capacity to penetrate and diversify export markets. This effort is complemented by RM1 billion in financing from Bank Pembangunan Malaysia Bhd to assist SMEs in expanding abroad.