Simplify complex application procedures

KUCHING: Sarawak businesses need easier access to Budget 2027 incentives, affordable financing and practical support to boost investment, expand exports and strengthen competitiveness.

Sarawak Chamber of Commerce and Industry (SCCI) president Datuk Philip Ting said the Budget’s tax relief and financing measures were encouraging, but their effectiveness would depend on how easily businesses could access them.

He welcomed the sales tax relief on specified machinery, equipment and materials, as well as extended capital allowances, saying these could encourage manufacturers to invest in production capacity and technology.

“However, the challenges go beyond the initial cost of machinery. Businesses also face rising operating costs, financing constraints and shortages of skilled workers.

“For Sarawak manufacturers, logistics and infrastructure considerations may add to these challenges,” he told Sarawak Tribune.

Ting said manufacturers also needed affordable financing, practical technology adoption support and simpler application procedures to turn the incentives into productive investments.

“Ultimately, investment must translate into higher productivity, stronger competitiveness and better-quality jobs,” he said.

On export expansion, he said limited working capital, high logistics costs, international compliance requirements and weak overseas market connections continued to constrain Sarawak companies.

He welcomed the RM60 million allocation for the Malaysia External Trade Development Corporation (MATRADE) to support international market expansion and RM1 billion in Bank Pembangunan Malaysia Bhd (BPMB) financing for small and medium enterprise (SME) exporters.

“MATRADE’s support can help businesses access new markets, while financing enables them to scale up production and fulfil export orders,” he said.

However, Ting stressed that simpler applications and closer coordination between market development and financing support were essential to help more Sarawak firms enter regional and global supply chains.

Turning to mid-tier companies, he said expansion often required substantial investment in facilities, technology, skilled workers and market development.

He welcomed the extension of financing guarantees to mid-tier companies and support for mergers and acquisitions, saying these could help viable businesses secure funding, consolidate resources and achieve greater scale.

“Financing guarantees could improve access to funding for viable mid-tier companies, while support for mergers and acquisitions could help businesses consolidate resources and achieve greater scale,” he said.

Nevertheless, he said financing alone would not sustain business growth without manageable operating costs, predictable policies and adequate skilled manpower.

“The focus should be on practical, affordable financing that enables companies to improve productivity, expand into new markets and create sustainable, higher-value employment,” he said.