Lim Guan Eng says six proposals to help MSMEs rejected by govt

DAP adviser Lim Guan Eng claims that six proposals he submitted to the government to assist micro, small, and medium enterprises (MSMEs) in navigating rising costs and economic challenges have been dismissed. The Bagan MP revealed the rejected measures during a Facebook post on August 11, following a meeting with Prime Minister Anwar Ibrahim on July 20.

The proposals included raising the e-Invoicing turnover threshold to RM5 million, establishing a special taxpayers' tribunal for MSMEs and individuals, abolishing the 2% Employees Provident Fund (EPF) contribution by employers for foreign workers, and simplifying foreign worker approvals through digital and online processing. Additionally, Lim proposed a one-year moratorium on interest payments for existing MSME loans and RM5 billion in interest-free, collateral-free financing for 100,000 MSMEs, each with a maximum loan of RM50,000.

He emphasized that these measures were crucial for the survival of 1.1 million MSMEs in Malaysia, which contribute 38% to the country's GDP, employ 48% of the workforce, and generate nearly 13% of total exports. Lim also called for the banking sector to play a more significant role in supporting MSMEs, citing an increase in pre-tax profits in the sector from RM48.3 billion in 2024 to RM54.8 billion last year.

The government, as represented by Treasury secretary-general Tan Sri Johan Mahmood Merican, acknowledged receiving Lim's proposals but stated that the Finance Ministry would thoroughly review them, considering the government's financial position, current policy priorities, and potential multiplier effects on the economy. The ministry also highlighted that several support measures for MSMEs already in place, such as RM5 billion in guarantees under the Business Financing Guarantee Company (SJPP) and the postponement of Phase Four of e-Invoicing, were being considered.

The ministry affirmed its commitment to maintaining a resilient MSME ecosystem capable of adapting to changing circumstances, stating that Lim's proposals would be evaluated based on their suitability and effectiveness in enhancing government policies.