The Borneo Post
18 July 2023
PKS Unleashing potential: Belanjawan 2023 fuels SMEs for sustainable growth
The Ministry of Finance offers many growth opportunities to small business owners and entrepreneurs under Belanjawan 2023.
KUALA LUMPUR (July 18): Small and Medium Enterprises (SMEs) play a major role in driving the country’s development and shaping our communities.
Whether found in bustling urban centres or serene rural landscapes, these enterprises are the lifeline of our economy. They fuel job creation, ignite innovation, and promote equitable wealth distribution.
Recognising their vital role, our government has taken steps to support and empower these businesses, particularly under Belanjawan 2023. As business owners and entrepreneurs, it’s important to be aware of the various measures available and seize the opportunities presented under Belanjawan 2023.
“The government is cognisant that there are still businesses affected by the pandemic, especially micro, small and medium-sized enterprises (MSMEs). Belanjawan 2023 will ensure local MSMEs are again competitive and able to increase their business capacity,” said Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during his presentation of the Belanjawan 2023.
The measures introduced under Belanjawan 2023 have proven to be a resounding success in providing much-needed relief to hard-pressed SMEs across the country. Many businesses have already benefited from these initiatives, experiencing tangible improvements in their operations and financial stability. However, it’s crucial for qualifying SMEs that have yet to take advantage of these opportunities to seize the moment swiftly.
The first and foremost initiative under this context is the reduction in tax rates. From assessment year 2023, the MSMEs’ rate on taxable income for the first RM150,000 will be reduced by two percentage points from 17 per cent to 15 per cent. This move is expected to provide savings of up to RM3,000 to 150,000 MSME taxpayers.
Government agencies will continue to provide various financing facilities and guarantees for the benefit of MSMEs with a total value of up to RM40 billion. Here, many initiatives are being carried out. Firstly, providing access to financing through agencies such as Bank Negara Malaysia (BNM), BSN, and Tekun with available funds totalling RM1.7 billion. Of that, RM300 million is specified to support micro-businesses owned by women and youth entrepreneurs.
Tekun also provides RM330 million, including RM10 million to support youths from underprivileged backgrounds to generate income through business. They will be given capital to venture into delivery services using motorcycles.
For SMEs, almost RM10 billion is provided by BNM, among others to reduce SMEs’ financial burden and to encourage their business development.
From reducing taxes rates to protecting digital assets, Belanjawan 2023 paves the way for the sustainable growth of MSMEs and SMEs. – Photo courtesy of SME Corp
In terms of loans, Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will guarantee up to RM20 billion in SME loans where key sectors such as manufacturing, agriculture, tourism and high technology are provided with government guarantee of up to 90 per cent. Guarantees will also be expanded to financing by non-banking financial institutions such as credit leasing companies and cooperatives to specifically benefit small businesses.
To encourage green practices, the government allocates RM1 billion for high technology and green facilities. Meanwhile, another RM1 billion is allocated for low-carbon transition facilities. This funding opportunity aims to support startups focusing on sustainable technologies and assist SMEs in implementing environmentally friendly practices.
The Automation and Digital facilities for SMEs (ADF) by BNM further facilitates the digitalisation process, providing resources and tools for SMEs to embrace automation and digital solutions.
Recognising the importance of cybersecurity, the government has also initiated the Malaysian Cybersecurity Empowerment Programme specifically tailored for SMEs, equipping them with the knowledge and tools to protect their digital assets. Moreover, Agrobank offers investment funds and financing options to support SMEs in the agricultural sector, fostering growth and sustainability in the industry.
On the other hand, catering to hawkers and small traders, the transformation of MyKiosk@KPKT stalls and kiosks across the country provides upgraded and modernised spaces for entrepreneurs to thrive.
Mara is also taking proactive steps to enhance its business premises and facilities. The Program Transformasi Premis Usahawan Luar Bandar (TRENT) by Mara further amplifies support for rural entrepreneurs, empowering them with resources and guidance to succeed.
Recognising the importance of strategic business spaces, the Malaysia Entrepreneur Hub Program by Uda is facilitating the provision of dedicated areas for SME entrepreneurs and hawkers, enabling them to operate in conducive environments.
Furthermore, the government is investing in the improvement of food courts, markets, and tamu markets nationwide under the supervision of local authorities (PBTs), ensuring vibrant and thriving business ecosystems. Additionally, Dewan Bandaraya Kuala Lumpur (DBKL) is actively supporting SMEs by providing business premises that cater to their diverse needs.
Meanwhile, Perbadanan Usahawan Nasional Berhad (PUNB) is offering assistance for Bumiputera property ownership in prime locations and implementing rental strategies for Bumiputera entrepreneurs, enabling them to establish and expand their businesses.
From upgrading and providing strategic business spaces to enhancing digitalisation opportunities, the government ensures that small entrepreneurs have the necessary tools and resources to thrive.
Through Belanjawan 2023, the government is laying a strong foundation for the sustainable development of MSMEs and SMEs, driving the country’s economic growth and shaping a prosperous future for our nation.
Visit https://belanjawan.mof.gov.my/manfaat to find out more about how to take part in the initiatives and explore many more measures that the government is offering to the rakyat.
(Web Source: https://www.theborneopost.com/2023/07/18/unleashing-potential-belanjawan-2023-fuels-smes-for-sustainable-growth/)