SMEs to govt: Deliver, don't just allocate in 2027 Budget

Small and medium enterprises (SMEs) are urging the Malaysian government to focus on delivering results rather than just allocating billions of ringgit in assistance in the 2027 Budget, according to an article in Business Times. Dr Chin Chee Seong, the national president of the SME Association of Malaysia, highlighted that SMEs continue to struggle with bureaucratic hurdles in accessing financing, grants, and other assistance, despite previous government announcements.

Chin emphasized that businesses are not simply concerned with the amount of support available; they demand effective execution and quick access to these resources to make a difference. The 2026 Budget had emphasized MSME financing, digital adoption, productivity, and reducing bureaucratic hurdles, but the challenge remains in how easily businesses can access these benefits.

Chin pointed out that financing and grants remain key pain points, citing complex application procedures and delays in securing approvals. He stressed the need for faster, more accessible government-backed financing, particularly for working capital, automation, and business expansion.

Another pressing issue is the increasing cost and complexity of regulatory compliance, as SMEs simultaneously adjust to digital requirements like e-Invoicing and changes in Sales and Service Tax. Chin expressed appreciation for the government's introduction of the e-Invoice voluntary correction programme and accelerated capital allowance for eligible e-Invoice expenditure but called for further simplification across agencies.

Chin also urged the government to move beyond merely increasing the number of SMEs adopting automation and AI, assessing whether such investments truly enhance productivity and competitiveness. He advocated for stronger incentives for automation and AI adoption, accelerated capital allowances, affordable financing, and skills development in the 2027 Budget.

However, he stressed that government support for large investments should be linked to supporting domestic SMEs, encouraging large foreign investors to develop Malaysian SME suppliers and transfer technology and knowledge.

Regarding talent development, Chin called for stronger industry-led technical and vocational education and training (TVET) and upskilling programmes to ensure workers replacing lower-skilled foreign labor can deliver higher productivity. For the 2027 Budget, SMEs are calling for concrete actions to reduce costs, improve cash flow, automate, adopt AI, develop talent, and access overseas markets.

Ultimately, Chin emphasized that the success of Malaysia's SMEs should be measured by their improved productivity, competitiveness, and ability to pay better wages sustainably.