SMEs call for clear policies on business

THE Small and Medium Enterprises Association of Malaysia (Samenta) would like to congratulate the Pakatan Harapan government on their 100 days in office.

We think this 100-day self-imposed timeline is unnecessary given the deep-rooted institutional challenges facing us but we are happy to note that there are some clear evidence of changes being made and some of the election promises being delivered that are in line with the rakyat’s expectations.

From a business perspective, however, we are disappointed that there’s already an indication that corporate tax will not be lowered in accordance with the regional trend.

In our recent dialogue with the International Trade and Industry Minister, the assurance given was that the new government will remain business friendly and trade facilitative.

We are looking forward to that being trans- lated into policy and implementation so that businesses can feel it on the ground.

On the Sales and Services Tax, Samenta hopes the Finance Ministry can come out with the full list of taxable industries and items as soon as possible so that businesses, especially SMEs, can prepare for SST.

Samenta urges the Government to resolve the outstanding refund of GST prior to implementing SST. As it is, many SMEs are not able to re-coup the investments spent in implementing GST. We are eager to support the new government but it must recognise that above all else, we need clear policies, and the sooner the better.

We also urge the Government to acknowledge that prices may not necessarily come down across the board with the repeal of the GST and introduction of the SST. We must remember that the SST has a compounding effect, and given the tough market condition, most SMEs will not be able to absorb fully any incremental cost. There are many factors that determine prices, not just the sales tax. For example, the Government is adamant on implementing another round of minimum wage rise. This would certainly raise costs and hence the final price to consumers.

Samenta urges the Government to partner with SMEs if the goal is to reduce cost of living. We need to reconsider the freeze on foreign labour. We have argued for years that foreign workers are taking jobs that Malaysians do not want, thus they are not in competition with local workers. Give us access to more workers; that will help lower our cost structure and keep prices competitive.

DATUK WILLIAM NG Chairman Policy and Government Relations Small and Medium Enterprises Association of Malaysia