The government is committed to simplifying regulations and reducing bureaucratic burdens to foster a conducive business environment, particularly for micro, small, and medium enterprises, said Deputy Finance Minister Lim Hui Ying.“We are committed to simplifying regulations and reducing bureaucratic burdens to create a level playing field for businesses of all sizes,” she said at SIDC Business Foresight Forum 2024 themed “Investing in MSMEs for Impact” here today.
The government understands that MSMEs face numerous challenges, including access to finance, market access, and talent development, she said. “Their growth and survival are often threatened by a range of risks, such as climate change, business interruptions, and limited access to capital markets.” Citing examples, Lim said the StartUp SME Tax Rebate offers a 20% tax rebate on the first RM20,000 of chargeable income for the first three consecutive years while the SME Special Deduction allows SMEs to claim a special deduction of 30% on qualifying expenditures incurred to automate their business operations.
Another incentive is the Investment Tax Allowance, Lim said, which enables SMEs to claim a deduction of up to 60% on qualifying capital expenditures incurred for business expansion.