KUALA LUMPUR: The government will reduce taxes on the first RM150,000 of revenue of micro, small and medium enterprises (MSMEs) to 15 percent, from 17 per cent.
Announcing this during the 2023 Budget, Prime Minister Datuk Seri Anwar Ibrahim said the reduction allowed savings of up to RM3,000 for SMEs.
He said the government would also allocate RM50 million to build 3,000 stalls and kiosks for small traders nationwide.
"I have often said why do we have big buildings, when the lives of those running small businesses were not taken care of.
"While the country already has enough and famous mega projects and landmarks, I also want the country to be famous for good hawker facilities, with the stalls being clean and hygienic."
In addition, Anwar said RM176 million would be provided to upgrade business facilities, including premises under Majlis Amanah Rakyat (Mara), Kuala Lumpur City Hall, Perbadanan Usahawan Nasional Bhd (PUNB) and UDA Holdings Bhd (UDA).
He said government agencies would provide up to RM40 billion in loan facilities and financing guarantees for MSMEs.
"MSMEs and small vendors are provided loans under agencies such as Bank Negara Malaysia, BSN and the National Entrepreneurial Group Economic Fund (Tekun), with available funds amounting to RM1.7 billion ringgit.
"Among them, RM300 million is set aside to support MSMEs by women and youth entrepreneurs.
"BSN will provide over RM1billion, with a focus on MSMEs and hawkers, while Tekun will provide RM330 million, including RM10 million to help youths from poor families earn income through businesses.
"They will be given start-up capital to start delivery services using motorcycles."
He said the government had also agreed to cover test fees for B2 class motorcycle licences, as well as licences for taxis, buses and e-hailing.
"For SMEs, almost RM10 billion in loans will be made available by Bank Negara Malaysia (BNM), to ease the financial burden of SMEs and support their business development."