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The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has called for Budget 2027 to focus on easing operational costs, refining tax frameworks, and boosting SME competitiveness amid rising market challenges.

Speaking at ACCCIM’s 80th AGM on Sunday (Aug 9), president Datuk Ng Yih Pyng highlighted that local businesses are grappling with higher employment costs, an expanded Sales and Service Tax (SST), electricity tariff changes, and stiff competition from foreign firms.

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00:01Ladies and gentlemen, at ACCCIM, we believe that a strategic, balanced and adaptive approach
00:09is essential to fostering confidence, innovation and sustainable growing
00:15amid ongoing domestic and global uncertainties.
00:19We have submitted a comprehensive set of proposals for the 2027 budget
00:25addressing key areas such as rising costs of living pressures, operating cost challenges,
00:33workforce productivity and scale development, technology and AI adoptions,
00:38wind transitions, circular economy and, of course, food security.
00:45The 2027 budget strategies, measures and initiatives must be designed to sustain domestic demand,
00:52protect the livelihood of Malaysians and strengthen household recipients.
00:58At the same time, budget should focus, should reinforce key growth driver,
01:04sustain private investment momentum, enhance structural competitiveness for SMEs and strengthen our export.
01:15To translate this policy into actionable outcomes, ACCCIM has put forward a series of policy recommendations
01:24to strengthen Malaysian economic long-term growth.
01:27So, first, we believe the tax system should be further refined to better support business expansion,
01:35reinvestment and cash flow management.
01:38This includes enhancing corporate tax incentives for SMEs by raising the preferential tax threshold,
01:48strengthening investment incentives such as the reinvestment allowance and investment tax allowance,
01:55and improving tax administration to provide greater certainty and flexibility.
02:01A more realistic CP204 tax estimation mechanism and a more efficient tax refund process
02:09would further support effective cash flow management and reduce compliance burden.
02:15Second, Malaysia must continue to promote high-level investment and strengthen domestic competitiveness.
02:22We propose extending the Accelerated Capital Allowance, ACA, until 2030,
02:30enhancing reinvestment incentives and reviewing SME definition
02:36to ensure mid-tier companies are not excluded from the support measure.
02:42At the same time, digital transformation must remain a priority.
02:47Finally, the digitalization grant should be strengthened through a higher funding ceiling
02:52and greater flexibility to support phased technology adoption,
02:58while encouraging locally developed solutions and industry-specific technologies.
03:05Government procurement should also be leveraged to strengthen domestic value creation
03:10through a structure made by Malaysia-first framework.
03:17Third, we must ensure a fair and level reinfills amid an increasingly competitive market environment.
03:24Malaysia remains open to foreign investment and healthy competitions.
03:29But all businesses must operate under transparent and consistent rules.
03:34This requires a more balanced regulatory framework for foreign-owned businesses
03:39and cross-order e-commerce, including clearer registration and compliance requirements,
03:45stronger platform accountability, and enhanced consumer protection.
03:51Among others, we have proposed reviewing the import duty de minimis threshold,
03:57also requiring high-value foreign online seller with annual sales.
04:02No sales exceeding RM1 million to establish a Malaysian business presence
04:07with local representatives and strengthening product verification
04:12through certifications, mechanisms such as Siri and the Malaysian Authenticity Portal.
04:19Beyond these areas, strengthening food security must remain a strategic national priority.
04:26We advocate a more integrated approach to developing the every-folk sector,
04:31including expanding productive agriculture land to true integrated farming system, IFS,
04:40utilizing undeveloped GLC land through public-private partnerships,
04:45and introducing long-term land-leasing arrangement of, let's say, 30 to 60 years,
04:53so that this will give investors more confidence to invest.
04:59And this measure will encourage investment, improve productivity,
05:04and strengthen Malaysian long-term food procedures.
05:06So, let's take a look at the chat campaign course of the
05:09program that daw�� partners to seek to participate in the right-line
05:14because it has a big part that will not stay here now.
05:16listener will not be announced as extreme combination of
05:16Please hold up again.
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