2% dividend tax will hit small businesses, says trade group

Free Malaysia Today

The SME Association says owners of small and medium enterprises depend on dividends as many of them do not draw salaries because of cash flow problems.  Read More:  ttps://www.freemalaysiatoday.com/category/nation/2024/10/18/2-dividend-tax-will-hit-small-businesses-says-trade-group/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTnews #SME #WilliamNg

Transcript

00:00The government's plans for a 2% tax on dividend income may discourage small and medium enterprises

00:08from growing their businesses.

00:09William Ng, president of the Small and Medium Enterprises Association, said most dividends

00:14would go to business owners since many of them have not drawn salaries due to cash flow

00:19issues in recent years.

00:20He said the government had clearly been lulled into believing that SMEs are doing well because

00:24of the strong economic headlines.

00:27In his budget speech today, Prime Minister Anwar Ibrahim announced a 2% tax on individuals

00:31who earn more than RM100,000 in dividends.

00:35Ng also said the hike in minimum wage would badly affect SMEs, particularly in Sabah and

00:39Sarawak, where many would struggle to cope with the higher costs.

00:43He said the only positive outcome for SMEs in the budget was the provision of RM50 million

00:48in matching grants for industrial training.

00:50He said the grants would help ease the talent crunch among SMEs while allowing more students

00:55to gain practical experience.

00:58Dhanesh Rajariza, FMT News.

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