Samenta urges swift, transparent disbursement of RM2.5 bln SME financing

KUCHING (Jan 7): The Small and Medium Enterprises Association of Malaysia (Samenta) has urged the government to ensure the additional RM2.5 billion under Bank Negara Malaysia’s (BNM) SME financing fund is disbursed swiftly, transparently and without bureaucratic barriers.

In a statement on Tuesday, Samenta president Datuk William Ng said the funds must be accessible to all SMEs, including the 50 per cent that have never received financing before.

He stressed that the eligibility criteria should be clear and consistent to prevent financial institutions distributing these funds to interpret it differently.

“There should also be no requirements for these funds to go only to SMEs with certain ratings, since different businesses have different needs and success factors,” he said.

In addition, Samenta also proposed the establishment of an industry-led SME Transition Academy to produce certified occupational safety and health (OSH), data and environmental, social and governance (ESG) officers, while preparing SMEs for the shift towards artificial intelligence and the circular economy.

“We cannot repeat the same mistake of assuming the SMEs are ready. We must prepare them now,” said Ng.

On tax, Samenta welcomed the increase in the service tax threshold for rental income to RM1.5 million, but called for a tiered approach for retailers and construction firms, where revenue may be high but profit margins remain thin.

It also proposed that SMEs operating in shopping malls be exempted from rental service tax if their landlords exceed the threshold to ensure fair treatment across the sector.

Separately, the association expressed appreciation to Prime Minister Datuk Seri Anwar Ibrahim and Minister of Entrepreneur Development and Cooperatives Steven Sim Chee Keong for the support package towards SMEs totalling nearly RM80 billion.

It highlighted several measures that respond to its concerns over the “2026 Survival Test”, including tax and rental relief through the reduction of the service tax rate from 8 per cent to 6 per cent, and the higher rental tax threshold.

The one-year deferment of fines for Phase 4 e-invoicing until Dec 31, 2026, for businesses with annual sales of RM1 million to RM5 million, was also welcomed as it gives SMEs time to adapt without fear of penalties for minor errors.

In addition, Samenta said the full settlement of income tax refunds for 2023 and 2024 by 2026, together with the additional RM2.5 billion in financing, would strengthen SME cash flow.

For the construction sector, it said the RM2.4 billion allocation for G1 to G4 contractors and the two-year service tax exemption on construction agreements would provide much-needed relief for small contractors operating on tight margins.