FINANCE Minister Tengku Datuk Seri Zafrul Tengku Abdul recently announced that Malaysia’s economic indicators continue to show growth trends, with this year’s gross domestic product (GDP) projections revised to between 6.5% and 7%.
He shared this at the launch of the Karnival Usahawan dan Koperasi Keluarga Malaysia (KUKKM) Negeri Selangor at Dataran Eco Grandeur in Puncak Alam, Kuala Selangor, on Oct 20, which was officiated by Prime Minister Datuk Sri Ismail Sabri Yaakob.
“Today’s programme reflects the government’s desire to strengthen the country in the face of various challenges. In doing so, it will also benefit entrepreneurs by strengthening their businesses,” he said.
Tengku Zafrul said the country experienced sluggish economic growth during the pandemic, but currently faces various external challenges such as geopolitical tension and rising global commodity prices due to inflation.
“Reflecting on the pandemic between 2020 and 2021, many entrepreneurs and small traders faced many challenges that have even pushed some to go out of business. Many families suffered because of that.”
That said, he explained that the government had been responsive by extending various assistance packages at a total value of RM530bil to Malaysian families and entrepreneurs.
“If you consider both the budgets for 2021 and 2022, the total value amounts to over RM650bil.”
The finance minister said the country’s transition to its recovery stage has seen the national economy becoming increasingly vibrant and driven by positive growth.
“And I have personally seen this change, reflected on the downcast faces of those I met during the pandemic to smiles that greet me today.
“In preparing the 2023 Budget, I have connected with traders, like vegetable sellers and shopkeepers, as well as small and medium enterprises (SMEs) that have made a presence in the Asean market. They were all thankful for being able to do business again. In fact, some even managed to upscale their businesses.”
He added that the Finance Ministry (MoF) has recorded accounts from 20 recipients who have successfully benefitted from the government’s assistance, which were shared on its official YouTube channel.
More importantly, Tengku Zafrul said, the government will always support business owners and inspire them as they face challenges in their trade.
However, he warned that current economic surveys have shown a challenging year looming, as the ongoing geopolitical conflict, global inflationary pressures and growth prospects continue to affect the local economy.
“As a country that practises an open economy, Malaysia is unable to isolate itself from this increasingly challenging global environment.
“In fact, the national economic growth rate for the year forward is also expected to be lower than this year’s,” he added.
To counter these challenges, Tengku Zafrul said at the recent 2023 Budget presentation that the government had an allocation of RM372.3bil and will be steered by a 3R approach – for responsive, responsible and reformist.
“From a responsive point of view, this budget is good news for all entrepreneurs. To stimulate and build resilience in the business sector, the government proposes to improve the SemarakNiaga programme with a total value amounting to RM45bil.
“Of that amount, RM1.7bil will be made available as micro loan funds and business facilities for small traders.”
He added that for small traders who still find it a challenge to revive after the pandemic, there will be RM1,000 one-off grants available to all registered SMEs. About one million businesses will benefit from this total allocation of RM1bil.
He said that from next year, the government has proposed reducing the tax rate on the first 100,000 SMEs’ taxable income, from 17% to 15%. This would potentially help save up to RM2,000 for about 150,000 SMEs.
The KUKKM carnival was attended by more than 10,000 participants, comprising entrepreneurs, cooperative members, hawkers and small traders, members of the Selangor State Parliament Entrepreneur Development Council and Cooperatives.
It was jointly organised by the Entrepreneurs Development and Cooperative Ministry and MoF, with the aim of conveying information on entrepreneurship services through exhibitions of government agencies to entrepreneurs and the local community.
Source: https://www.thestar.com.my/news/nation/2022/10/25/mof-assures-smes-of-support-during-hard-times