Kuala Lumpur:The Small and Medium Enterprises Association of Malaysia (SAMENTA) has expressed approval for the one percent corporate income tax reduction for Malaysian micro, small, and medium enterprises (MSMEs) as outlined in Budget 2027. This measure is expected to provide up to RM6,000 in tax savings for over 300,000 SMEs.
According to BERNAMA News Agency, SAMENTA's national president, Datuk William Ng, highlighted that the reduction of the preferential corporate tax rate to 14 percent on the first RM150,000 of taxable income and 16 percent on the RM150,001 to RM600,000 bracket will enhance liquidity for businesses, enabling reinvestment. Ng also praised the decision to exempt SMEs with an annual turnover below RM50 million from the new RM2,000 minimum wage mandate set to take effect in June 2027, allowing them time to increase productivity and automate processes before accommodating the higher wage.
Ng further commended the government's plan to introduce the E-Commerce Bill to regulate foreign e-commerce platforms, thereby safeguarding local jobs and ensuring fair competition for Malaysian businesses. SAMENTA also supports the increase in total financing and guarantee facilities from RM50 billion to RM57 billion, led by RM32 billion in guarantee capacity from Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC), addressing the credit access issues for SMEs lacking collateral.
The Budget 2027 allocation of RM30 million to the Malaysia Digital Economy Corporation (MDEC) is aimed at encouraging artificial intelligence (AI) adoption among 4,000 SMEs to foster technological advancement. Additionally, RM60 million allocated to the Malaysia External Trade Development Corporation (MATRADE) and RM1 billion in export financing from Bank Pembangunan Malaysia Bhd (BPMB) are intended to aid SMEs in enhancing their export capabilities.
Mushahid Syed, interim CEO of Standard Chartered Malaysia, expressed the bank's support for the additional RM5 billion financing facility for SMEs affected by the West Asia conflict and RM6.6 billion in microfinancing for 2027. He also recognized the importance of the RM2.1 billion funding from the New Industrial Master Plan 2030 Strategic Co-Investment Fund, KWAP's Dana Pemacu, and Khazanah Nasional's Mid-Tier Company Fund for strengthening mid-tier companies in key sectors.
Support for Bumiputera businesses includes RM7.5 billion in reserved government procurement for G1-G4 contractors, RM1 billion in financing through TERAJU, RM2 billion to bolster Bumiputera companies, and RM250 million under Dana Ciptawan for mid-sized Bumiputera firms, along with tax cuts and grants.
ICT Zone Asia Berhad lauded the Budget 2027 measures to reduce technology investment costs and promote AI adoption among SMEs. CEO Tommy Lim Kok Kwang suggested that allowing device rentals and subscriptions alongside purchases could further assist small businesses by spreading costs over time.