DPPMT likens Budget 2021 to SMEs second lease of life

KUALA TERENGGANU: The government needs to increase infrastructure spending in Budget 2021 to boost economic growth with a focus on integrity in the distribution of projects.

Terengganu Malay Chamber of Commerce and Industry (DPPMT) deputy president Dr Tengku Khairi Tengku A Rahman said this was among the 11 items on the chamber’s wish list for the upcoming 2021 Budget to stimulate the growth of the country’s economy and small and medium enterprises (SMEs).

He likened the budget to “a second lease of life” to raise the ability of SMEs to sustain within the first six months of next year.

“We’ve also propose that Bantuan Geran Pemulihan Khas 2.0 worth RM4,000 to be continued as an extension of the implementation of GPK (Special Prihatin Grant) (for all eligible micro SMEs).

“The government should also provide additional funds to Amanah Ikhtiar Malaysia and Tekun Nasional (the National Entrepreneur Group Economic Fund) to assist micro entrepreneurs in particular.

“Special incentives such as (reduction in) corporate tax or assessment tax should be given to SMEs who are able to employ and recruit workers among locals who have lost their jobs,” he told Bernama yesterday.

Tengku Khairi said the government should encourage government-linked companies (GLCs), as well as government departments and agencies to purchase local SME products in line with the Buy Malaysia Campaign, while a special grant initiative should be given to SMEs that produce import substitute products.

The chamber also recommends that the moratorium period specifically to all SMEs be extended for at least another six months to help ease their cash flow.

The government also needs to give exemption or discount of up to 70 per cent for the rental of government agency premises to all SMEs for the next six months, as well as exempt SMEs and individuals from paying income tax for the assessment years 2020 and 2021 to help them address the impact of Covid-19, he said.

Besides that, he said Bank Negara Malaysia (BNM) needs to be more aggressive and proactive in assisting SMEs in asking financial institutions to reschedule or restructure loans.

“The wage subsidy programme (PSU) should be continued, with its process simplified, while its payments speeded up. To encourage online purchases, as well as help the businesses of entrepreneurs involved, the government ought to provide RM100 e-wallet aid to the people,” he said.