Kuala lumpur:<Text>

The Small and Medium Enterprises Association of Malaysia (SAMENTA) views the exemptions of Sales and Service Tax (SST) on office rentals for new companies and small and medium enterprises (SMEs) with revenue below RM1.5 million as a demonstration of government support for SMEs. Its president, Datuk William Ng, emphasized that the reduction of the rental SST rate to six percent will provide immediate liquidity relief for urban SMEs struggling with high overheads.

According to BERNAMA News Agency, the one-year postponement of e-invoicing for companies with revenue up to RM5 million offers crucial breathing space. This measure assists in preventing compliance burnout among the nation's largest segment of employers. Datuk William Ng urged both the government and SAMENTA members to utilize the additional 12 months to prepare for the transition effectively.

To capitalize on this period, SAMENTA has proposed the establishment of an SME Transition Academy. This academy aims to train certified officers in areas such as occupational safety and health, data management, and environmental, social, and governance (ESG) practices. The goal is to help SMEs shift from a mindset of 'fear of non-compliance' to one of 'capability for compliance.'

Moreover, the association has recommended that the government refine the RM1.5 million threshold by adopting a tiered approach for high-growth sectors with thin margins, such as retail and construction. Datuk William Ng also strongly advised SMEs below the thresholds for both e-invoicing and SST on rentals not to become complacent but to use this time to prepare their workforce, processes, and systems for upcoming changes.