Kuala Lumpur:The Small and Medium Enterprises Association of Malaysia (SAMENTA) has praised Budget 2027, describing it as an 'SME Budget' due to its initiatives aimed at relieving cash flow pressures and reducing operating costs for micro, small, and medium enterprises (MSMEs).

According to BERNAMA News Agency, SAMENTA's national president, Datuk William Ng, expressed approval for the declaration of 2027 as 'Malaysia MSME Year' made by Entrepreneur and Cooperatives Development Minister Steven Sim Chee Keong. Ng highlighted the budget’s focus on MSMEs, which includes a RM57 billion financing and guarantee package, a one-percentage-point reduction in the corporate income tax rate for SMEs, and an exemption for SMEs from the revised RM2,000 minimum wage requirement.

Ng emphasized SAMENTA's strong support for the Entrepreneur Development and Cooperatives Ministry's (KUSKOP) ABCD Framework. This framework provides a structured approach to help small businesses modernize, integrate into high-value supply chains, and enhance their regional competitiveness.

As Malaysia's oldest and largest SME association, SAMENTA is committed to collaborating with Minister Sim and KUSKOP to ensure the budget initiatives are effectively implemented. Ng stressed the importance of speeding up the disbursement of financing facilities, supporting digital automation, and easing access to export markets, all while minimizing bureaucratic challenges.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, during the presentation of Budget 2027, announced an increase in loan facilities and financing guarantees for MSMEs from RM50 billion to RM57 billion. Additionally, the corporate income tax rate for these enterprises will be reduced by one percentage point. While the minimum wage will rise from RM1,700 to RM2,000 in June 2027, MSMEs with annual sales below RM50 million will be exempted from implementing the new rate to allow time for adapting their business models.