The Ministry Of Entrepreneur Development And Cooperatives (MECD) welcomes the presentation of Budget 2023 which provides loan facilities and financing guarantees for the benefit of Small and Mediun Sized Entrepreneurs (SME) with a total value of up to RM40 billion.
The overall allocation for this year amounts to RM732 million which includes RM520 million in development expenses and RM212 million in operating expenses, the ministry sad in a statement today (Feb 24).
This recorded an increase of RM182 million compared to last year’s budget, especially development expenditure which was added by RM165 million.
Among the incentives that can be used by MECD and agencies are:
1. The SME tax rate on taxable income for the first RM150 thousand is reduced from 17% to 15%;
2. RM50 million to build and upgrade involving 3,000 stalls and kiosks as facilities for small hawkers to do business in focal locations across the country;
3. RM176 million is provided to upgrade business premises and facilities including under MARA, DBKL, Perbadanan Nasional Berhad (PUNB) and Perbadanan Pembangunan Urban (UDA);
4. Loan facilities under agencies such as Bank Negara Malaysia (BNM), BSN and TEKUN with available funds amounting to RM1.7 billion:
a) RM300 million to support micro businesses by women and youth entrepreneurs;
b) Provision of loans of over RM1 billion with a focus on Micro SMEs and hawkers by BSN;
c) RM330 million by TEKUN Nasional including RM10 million to help youth from difficult families to earn income through business which also includes providing capital to start delivery services using motorcycles. V
5. A loan fund of almost RM10 billion for SME businesses by Bank Negara Malaysia (BNM) to ease the financial burden of SMEs and support business expansion;
6. Guarantees of up to RM20 billion of SME loans by the Business Financing Guarantee Company (SJPP) with focus sectors such as high technology, agriculture and manufacturing are guaranteed by the Government up to 90% which is also extended to financing by non-banking financial institutions such as credit leasing companies and cooperatives;
7. A loan fund of up to RM2 billion by BNM to support sustainable technology start-ups and help SMEs implement low-carbon practices;
8 RM100 million under the SME Digitization Grant Scheme and small hawkers in the form of a matching grant of up to RM5,000.00 will be paid to SMEs who subscribe to business digitization applications such as POS sales systems, accounting or inventory management; and i
9. RM1 billion funding fund under BNM to help PMKS automate business processes and digitize operations. KUSKOP supports the Civil Budget focus through 12 main efforts based on three determinations namely;
First: Comprehensive and sustainable economic drive;
Second: Institutional and governance reforms to restore confidence and
Third: Social justice to moderate the disparity is a strategic formulation that will help steer the country in the face of global economic challenges and ensure the welfare and socioeconomics of the people continue to be awake in this critical situation.
MECD is confident that the implementation of Budget 2023 with the theme of Developing a Civilized Malaysia can develop the socioeconomics and highlight powerful solutions to help entrepreneurs and cooperatives towards the sustainability and sustainability of their businesses.
