KUALA LUMPUR – Putrajaya has proposed that the rate on taxable income for small and medium enterprises (SME) to be reduced from 17% to 15% under Budget 2023.
In tabling the revised budget in Parliament today, Prime Minister Datuk Seri Anwar Ibrahim said the decrease will see savings of up to RM3,000 for every 150,000 SME taxpayers.
He also said that as part of upholding local businesses, the government will allocate RM50 million for building and upgrading works for 3,000 stalls and kiosks in selected locations nationwide.
“Besides that, RM176 million will be provided to upgrade business premises and facilities under, among others, Majlis Amanah Rakyat, Kuala Lumpur City Hall, Perbadanan Usahawan Nasional Bhd, and the Urban Development Corporation,” Anwar said.
Anwar, who is also Finance Minister, said a total RM40 billion will be provided for government agencies to facilitate loans and financing guarantees for SME ventures.
Funds amounting up to RM1.7 billion will be made available for SME loans under, among others, Bank Negara Malaysia (BNM), Bank Simpanan Negara (BSN) and Tekun, he said.
“(Of the RM1.7 billion), RM300 million will be set aside to support SMEs run by female and youth entrepreneurs while BSN has allocated over RM1 billion targeted for micro businesses and hawkers.
“Tekun has also allocated RM330 million including RM10 million to aid youths from low-income families to garner an income through business ventures,” Anwar said.
While nearly RM10 billion loan funds will be provided by BNM, Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) is set to guarantee up to RM20 billion in SME loans with a focus on high technology, agriculture and manufacturing sectors.
The sectors will also receive a 90% guarantee from the government, with the guarantee also to be extended to financing loans for non-banking financial institutions such as credit leasing companies and cooperatives. – The Vibes, February 24, 2023
