THE Malaysian Employers Federation (MEF) today called for more to be done to support businesses, following yesterday’s unveiling of the national budget for 2023. 

MEF president Syed Hussain Syed Husman said that it is important for the private sector to be revitalised as an engine of growth. 

“MEF is of the view that wage subsidy programmes, as introduced in 2020, 2021 and 2022, be continued to assist employers to sustain employment of the employees and assist the country to stabilise the labour market,” he said.

“MEF hopes that in the event the situation in 2023 warrants the reintroduction of wage subsidies, the government should then assist the businesses with wage subsidies to avert possible mass layoffs,” he said in a statement.

Hussain said the 2023 national budget renders fair assistance to businesses and workers anticipating tough times ahead.

He said SMEs, which represent about 98% of businesses, will receive RM9 billion in guaranteed financing

“Bank Negara Malaysia will further assist the SMEs with RM10 billion for automation, digitalisation, tourism and agriculture. This is critical for SMEs to remain relevant.

“RM1 billion is set aside to fund a RM1,000 grant for registered SMEs.”

He said MEF welcomes the tax reduction for SMEs from 17% to 15% for the first RM10,000 of earnings, which will benefit 150,000 organisations. 

“The extension until 2024 of stamp duty exemption by up to 100% for loan or financing restructuring or rescheduling agreements will greatly assist SMEs.

Meanwhile, Small and Medium Enterprises Association chairman William Ng thanked the government for the aid for SMEs in the budget.

“While it is clear that many of the initiatives were made with the election and micro-enterprises in mind, the overall liquidity to be injected and the focus on automation and digitalisation will help support post-pandemic recovery.

“But it would have been more effective to allow double deduction for investments into R&D, digitalisation, automation, and ESG compliance, on top of financing facilities.”

He said most SMEs are reluctant to invest substantially in plant and process upgrades due to political and economic uncertainty.

“As such, targeted financing facilities such as those announced will not make as much difference as a more complete package of budgetary intervention.”

Ng added that SMEs continue to face low productivity.

“We will continue to work with various government agencies to help our SMEs better protect their margins, improve their productivity and navigate the digital economy.” – October 8, 2022.