KUCHING: Small and medium enterprises (SMEs) in Sarawak have urged the government to reduce red tape and simplify procedures in providing financial assistance to the micro, small and medium businesses.
SME Association of Sarawak President, Jordan Ong said, most of the micro, small and medium enterprises need the financial aid urgently to help businesses to continue to recover from the devastation caused by the Covid-19 pandemic.
From experience, he said, applications and approvals usually involved a long and tedious process, sometimes it would be confusing and complicated as well.
Such a frustrating process, he said might result in supposedly good fiscal assistance falling short in terms of execution.
“Therefore, whether or not an SME can benefit from the government’s goodwill, will depend very much on the smoothness and transparency of the application and approval process for grants, loans and incentives,” he told New Sarawak Tribune.
“We hope the government and all related agencies can look into cutting the red tape and ensure all the financial aid reaches the SMEs as soon as possible,” he stressed.
Ong said this was especially because SMEs have remained as the backbone of the country’s basic economy as they make up 97 per cent of business establishments in the country and employ about 70 per cent of total national employment.
He was commenting on the revised Budget 2023, which was tabled by Prime Minister Datuk Seri Anwar Ibrahim on Friday, where the government agencies set to continue the provision of RM40 billion in financing facilities to micro, small and medium enterprises (MSMEs).
He also commented on the taxable income for the first RM150,000, which has been reduced to 15 per cent from 17 per cent for assessment year 2023, and expected to benefit 150,000 MSMEs taxpayers with tax savings of up to RM3,000 each.
“Although we welcome the tax savings, the government could have implemented more pragmatic measures to reduce the cost of doing businesses, especially in tackling the increasing cost of raw materials, electricity tariffs and labour costs as which most SMEs are still struggling with.
“The tax savings will only be up to RM3, 000 each but if a company is not profitable, the tax saving is meaningless,” he added.
