‘Provide loans to SMEs after GST is zero-rated’

PETALING

JAYA: With the zero-rating of the Goods and Services Tax (GST) from tomorrow, the Government should consider providing subsidies or loans to small and medium enterprises, says Malaysia Entrepreneurs’ Development Association (PUMM).

Its president Datuk See Kok Seng said such facilities could assist SMEs to transform their management and operation through artificial intelligence concept, hence reducing dependence on labour and in particular, foreign workers.

See said the Government should also take pro-active measures to stabilise the country’s currency and boost investors’ confidence.

“This will definitely benefit the country in terms of economic growth and strengthening of trade.

“The efficiency of government agencies should also be improved by reducing red tape and introducing other business-friendly measures such as implementing online application and approval,” he said.

On the zero-rated GST, he said the policy would help to improve the cash flow of SMEs and enable the people, especially low and middle-income earners, to regain their purchasing power.

“We expect it will further strengthen positive sentiments of consumers and timely too with Hari Raya and school holidays fast approaching.

“But based on our understanding, this is just a stop-gap measure as there are other legal and policy concerns to be addressed before it is removed completely,” he said.

See added that PUMM did not anticipate the reintroduction of the Sales and Services Tax (SST) to be burdensome as it only takes place at the point of sale.

“We hope the SST does not burden the business community from an administrative and implementation point of view.

“Some engagements with the people and business community will be good to get more input,” he said.

Set up 25 years ago, PUMM now has 2,400 members nationwide and 99% of its members are SMEs from different fields.

It has seven branches in Penang, Perak, Selangor, Negri Sembilan, Johor, Pahang and Sabah.

Two more branches will be set up over the next two years.