Local businesses stand to gain from the many initiatives introduced in Malaysia’s largest budget in history. — Bernama photo
KUCHING: Local businesses stand to gain from the many initiatives introduced in Malaysia’s largest budget in history on October 29, 2021, totaling RM333.2 billion as the government aims to spur post-pandemic growth in 2022.
The budget provides several incentives, grants, and financing schemes for businesses. Several are also an extension of the benefits issued under the 2021 state budget.
These include more than RM19 billion in funding for micro, small, and medium-sized enterprises (MSMEs) and wage subsidy programs to help employers hire Malaysians. Moreover, the government has also dedicated RM10 billion for loans dedicated to Bumiputera businesses.
Yang Emirra
Initiatives such as these would benefit local entrepreneurs such as Yang Emirra, founder of Kuching-based The Brownie Projekt.
“The Budget 2022 provides several incentives and funds that should be beneficial to SMEs,” she said to The Borneo Post. “The extension of loans and funds can also help SMEs impacted by the pandemic.”
Another player standing to gain from these is local pharmacy chain JOM Pharmacy. According to its chief executive officer Caine Kok, at the early stage of Covid-19 outbreak in 2020, small companies like JOM Pharmacy was largely affected.
“We experienced a shortage of medical supplies such as face mask, hand gloves, infrared scan thermometers, face shields, antibacterial handwash and so on. Thus, we must limit the quantity we could sell to each customer so that everyone at least has some on hand to protect themselves,” he enthused to The Borneo Post.
“It was a tough time to stand firm to customers challenging demand and facing shortage of market’s supplies.
“In the second year, we are more prepare and fully vaccinated. However, a few of our staff is still either tested positive or has close contact with Covid-19 virus patients.
“We were forced to close for a period of time and conduct thorough disinfection. We have to bear the staff’s PCR swab test medical fee as well at average RM440 per person for two tests.
Caine Kok
“Suddenly we are short of staff, facing losses of sales for closing for business, and high expenditures on medical & other miscellaneous items for covid-19 prevention measures & strict standard operating procedures.
“These do not include expenses for running a pharmacy mainly include outlet’s rental, pharmacist and pharmacy assistant salary, utilities, repair and maintenance, and so on.
“Therefore, rental discount special deduction at 30 per cent or more is beneficial to both landlords and tenant. Besides, we are able get a hiring incentive for hiring new staff from MyFutureJobs websites,” he explained.
Kok further said the additional deduction on Covid-19 tests also helped to lessen their company’s burden, in addition to the renovation and refurbishment cost tax deduction which helped JOM Pharmacy to open more branches to serve people better in the future.
Charles Liew
From a business perspective, Charles Liew, managing director of SHiNE Pharmacy, commmented that Budget 2022 was helpful as compared to past budgets historically.
“In saying that, with this budget being a budget geared towards resuscitating an economy hit by the global pandemic, I would say this budget is fair, without being extraordinary, considering the rest of the world are also doing budgets along the same lines,” he opined.
“Tax measures like Cukai Makmur will definitely help to give companies breathing space as they cope with company restructuring or recalibration, and by allowing these companies the opportunity to survive, in essence the government is also saving jobs.
“That in itself will stop the economy from contracting too much as Malaysians will continue to have funds to spend within the economy. Sustaining or improving the levels of spending within an economic ecosystem is the number one driver for an economy to multiply and prosper.”
While a lot of these measures can be looked upon as election sweeteners, Liew further said the public should give this budget a chance and seek to educate the people to leverage fully what they could get out of the budget.
“The hope is that the budget is not a once-off effort, with government help, government monitoring and government pivoting imperative in ensuring the economy gets back to its feet.”
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