Kerajaan digesa beralih kepada bantuan berasaskan hasil untuk PKS

Malaysia's Small and Medium Enterprises (PKS) association has urged the government to shift its support to a results-based funding model for the sector in the 2027 budget, rather than simply announcing large-scale allocations. President Chin Chee Seong emphasized that support should generate measurable improvements in productivity, investment, growth, and competitiveness.

The real concern is not merely the existence of the aid, but whether it reaches PKS and whether it leads to tangible improvements in productivity, investment, growth, and competitiveness, Chin stated at a media briefing today. The 2027 budget should provide targeted financial assistance based on company growth levels, covering aspects such as daily cash flow, factory output, artificial intelligence, green practices, and expanding to overseas markets.

The success of the aid initiative ultimately needs to be evaluated based on concrete operational results, such as a company's ability to automate operations, increase productivity, export goods, or penetrate new markets. To strengthen domestic direct investment, Chin suggested the government provide incentives for local businesses to re-invest and grow, in addition to encouraging public-private sector (PPP) and domestic PKS company joint investments.

The association also warned that local businesses are facing increasing operating costs, including higher labor expenses, higher utility bills, higher financing costs, expanded sales tax scope, invoicing requirements, licensing fees, and compliance costs. To prevent ongoing pressure on business survival, Chin proposed the government conduct a comprehensive impact assessment and cumulative cost analysis of PKS before introducing any new major operating expense base.

These concerns come as a recent PKS survey found 61.6% of PKS members believe business conditions have worsened compared to 12 months ago, while nearly half reject further increases in minimum wage until productivity improves.