Latest news with #Samenta
Free Malaysia Today
21 hours ago
- Business
- Free Malaysia Today
Close structural gaps to achieve economic goals, govt told
Malaysia has become the world's 23rd most competitive economy, according to an international ranking, rising 11 places from last year. (Envato Elements pic) PETALING JAYA : For businesses and employers, addressing structural problems and inadequacies must be front and centre in any effort to take the Malaysian economy to the next level. As the Malaysian Employers Federation (MEF) and Small and Medium Enterprises Association of Malaysia (Samenta) pointed out, challenges such as the shortage of talent and too much red tape must be sorted out before the country can achieve its goal to be among the world's top 12 economies by 2033. Syed Hussain Syed Husman. MEF president Syed Hussain Syed Husman said Malaysia continues to face structural gaps in multiple areas. 'We are weak in innovation, the talent pool in artificial intelligence (AI) and data analytics is shallow, and we are slow in adopting automation and cybersecurity,' he told FMT. He also pointed out that there is a persistent mismatch between the skills that graduates have acquired at university and what industry actually needs. 'We must tackle these issues now if we are serious about competing with the world's best,' he said. In its World Competitiveness Ranking 2025 list released this week, the International Institute for Management Development (IMD) has placed Malaysia at number 23, up 11 places from the previous year. The 69 countries covered in the IMD survey were evaluated in five key strategic focus areas, namely workforce development, digital and AI adoption, private sector-led research and development (R&D), regulatory reforms, and supply chain resilience. Switzerland tops the list, followed by Singapore, with Hong Kong rounding off the top three. Elaborating on the failure of the education system to produce graduates who can meet industry needs, Syed Hussain said many training modules are now outdated, having failed to keep up with the demands of fast-evolving sectors. He singled out fast-moving sectors such as AI, cybersecurity, fintech, renewable energy and e-commerce as those sectors that are affected. He attributed this to 'insufficient employer involvement' in technical and vocational education and training as well as the Human Resource Development Corporation training programmes. 'The skills development ecosystem is also fragmented across ministries and agencies,' he added. As a result, he said, small and medium enterprises (SMEs) continue to struggle with automation due to high upfront costs and limited awareness of return on investment. On digital transformation, Syed Hussain said businesses outside urban centres still face barriers such as poor access to high-speed internet and 5G networks. At the same time, the talent pool in AI, data analytics, and cybersecurity remains limited. 'Malaysia faces a persistent gap in high-demand tech areas, leading to a dependence on foreign expertise,' he said. He said R&D in Malaysia is also largely driven by the government, with low commercial returns posing a deterrent to private sector involvement. Syed Hussain added that Malaysia's reliance on low-margin manufacturing makes it vulnerable to global trade shocks. 'Many local firms lack the scale, certification or access to financing needed to break into foreign markets,' he said, adding that a logistics infrastructure was needed to diversify trade. Reforms working but must be sustained Samenta chairman William Ng said that while he welcomed the country's improved standing in the IMD ranking, he also stressed that this is not the time to be complacent. William Ng. He said consistent policies, improved R&D support, and greater private sector participation are needed for Malaysia to break into the ranks of the world's top 12 economies by 2033. Ng credited recent initiatives such as the Reformasi Kerenah Birokrasi (RKB) and the creation of the Business Efficiency Task Force for contributing to the positive momentum. However, he warned that longstanding challenges remain, especially on ensuring that national policies are not frequently changed and reducing red tape for firms to do business. Ng said Malaysia's improved position ahead of Thailand, Indonesia, and the Philippines signals that reforms are working, but they must be sustained and supported through a whole-of-nation approach. 'The government alone cannot effect these reforms. Businesses, including our SMEs, must move up the value chain for Malaysia to become even more competitive and to future-proof our economy for generations to come,' he added.
The Sun
2 days ago
- Business
- The Sun
Samenta: Malaysia's surge in competitiveness due to policy and reforms by government and businesses
PETALING JAYA: Malaysia's achievement in climbing 11 positions to 23rd spot in the 2025 World Competitiveness Ranking (WCR) underscores the strong policy measures and reforms implemented by the government and businesses in strengthening the economic fundamentals and making the nation more competitive on the world stage, said Small and Medium Enterprises Association of Malaysia (Samenta). Samenta national president Datuk William Ng remarked: 'The rise, the highest among all participating economies, reflects progress across key areas of competitiveness, in particular government and business efficiency, both of which improved by eight ranks.' Notably, he said, Malaysia has improved significantly in eradicating bribery and corruption, boosting private investment in research and development (R&D), reducing bureaucracy and strengthening employment. 'Malaysian businesses have demonstrated greater adaptability, productivity and innovation, making our companies more competitive. The country's strong economic growth, low inflation and healthy employment conditions all contribute to this upward trajectory,' said Ng. 'Malaysia's improvement is particularly noteworthy when we consider it within the Southeast Asia context. Among Asean members, we now outperform Thailand (30th), Indonesia (40th) and the Philippines (51st). Our progress underscores our ability to implement reforms effectively and signals to investors and businesses that Malaysia continues to be a leading destination for investment and growth in Southeast Asia,' he added. Ng said recent initiatives have played a key role in this progress, especially the rollout of Reformasi Kerenah Birokrasi, which has helped cut red tape and simplified procedures for businesses and citizens. The Akta Iltizam passed by Parliament in March underscores a strong legislative resolve to ensure efficiency in the public sector, he said, adding that the Corruption Perception Index Task Force, chaired by the chief secretary to the government, is tackling corruption and strengthening institutional integrity. Furthermore, Ng said, the Business Efficiency Task Force, led by Malaysia Productivity Corporation, is hard at work identifying bottlenecks and improving the ease of doing business across sectors. 'All these initiatives collectively create a more stable, efficient and forward-looking ecosystem for companies to operate and grow.' The inclusion of Samenta and SMEs in some of these efforts, including the Business Efficiency Task Force and various productivity initiatives, is indicative of the government's desire to drive the economic reform at all levels, including among their small and medium enterprises, said Ng. 'While we celebrate this progress, we must not become complacent. More needs to be done if we are to realize Ekonomi Madani's ambitious goal of breaking into the top 12 of the ranking by 2033. To further enhance our competitiveness and move up the ranking, we need to strengthen digital transformation, improve skills and education, cut bureaucracy, provide policy consistency and boost research and development initiatives. 'Providing greater incentives and support for companies, especially SMEs, to leverage technology and innovate is key. Ensuring policy stability and reducing red tape will help businesses operate more efficiently and respond faster to market opportunities,' he remarked. Ng said these efforts require a whole-of-nation approach as the government alone cannot affect these reforms. Businesses, he added, including SMEs, must move up the value chain in order for Malaysia to become even more competitive and to future-proof the economy for generations to come.
New Straits Times
3 days ago
- Business
- New Straits Times
Samenta: Malaysia's rise in global competitiveness reflects reform progress
KUALA LUMPUR: Malaysia's climb to 23rd place in the IMD World Competitiveness Ranking 2025 affirms the government's economic reforms and policy enhancements, said the Small and Medium Enterprises Association of Malaysia (Samenta). Samenta president Datuk William Ng said the 11-spot jump, the highest among all participating economies, reflects notable progress in key competitiveness indicators. He added that government and business efficiency both advanced by eight ranks. Ng said Malaysia has improved significantly in eradicating bribery and corruption, boosting private investment in research and development, reducing bureaucracy and strengthening employment. "Malaysian businesses have demonstrated greater adaptability, productivity and innovation, making our companies more competitive. "The country's strong economic growth, low inflation and healthy employment conditions all contribute to this upward trajectory," he said in a statement. According to Ng, Malaysia's improvement is particularly noteworthy within the Southeast Asian context. Among Asean members, Malaysia now outperforms Thailand (30th), Indonesia (40th) and the Philippines (51st). "Our progress underscores our ability to implement reforms effectively and signals to investors and businesses that Malaysia continues to be a leading destination for investment and growth in Southeast Asia," he said. In addition, Ng said more needs to be done to realise Ekonomi Madani's ambitious goal of breaking into the top 12 of the ranking by 2033. To further enhance Malaysia's competitiveness and move up the ranking, Ng said the nation needs to strengthen digital transformation, improve skills and education, cut bureaucracy, provide policy consistency and boost research and development initiatives. "Providing greater incentives and support for companies, especially small and medium enterprises, to leverage technology and innovate is key. "Ensuring policy stability and reducing red tape will help businesses operate more efficiently and respond faster to market opportunities," he added.
Free Malaysia Today
13-06-2025
- Business
- Free Malaysia Today
Anwar says 13th Malaysia Plan must tackle economic gaps, fiscal limits
Prime Minister Anwar Ibrahim chairing the high-level discussion on the 13th Malaysia Plan's preparation with senior government officials today. (Facebook pic) PETALING JAYA : Prime Minister Anwar Ibrahim said today the 13th Malaysia Plan (13MP) must serve as a starting point for tackling the country's economic challenges. Anwar said these challenges include development and income disparities, limited fiscal space, and the slow pace of structural economic transformation. 'Malaysia must build greater resilience to face global economic risks and uncertainties, while accelerating structural reforms and narrowing socio-economic development gaps,' he said in a Facebook post. Earlier, Anwar chaired a high-level discussion on the 13MP's preparation with senior government officials. He said the preparation of the document, which began in mid-2024, is the result of a collaborative effort and comprehensive feedback on proposed strategies and initiatives from a wide range of stakeholders. These stakeholders include various ministries, state governments, local authorities, civil society organisations and the general public. Last month, a business group expressed concern about the 13MP following the resignation of economy minister Rafizi Ramli. The Small and Medium Enterprises Association of Malaysia (Samenta) warned that the country risked missing out on yet another economic cycle (2026–2030) if key reforms outlined in the plan were not retained and fully implemented. Rafizi resigned as the economy minister on May 28 following his defeat to Nurul Izzah Anwar in the race for the PKR deputy president's post. The Pandan MP said his final responsibility as economy minister was to complete the 13MP, which will be tabled in Parliament in the upcoming meeting from July 21 to Aug 28.
The Sun
10-06-2025
- Business
- The Sun
Samenta seeks sectoral guidelines, higher threshold for SMEs in expanded SST implementation
PETALING JAYA: The timing and the manner of the implementation of the expanded Sales and Services Tax (SST) effective July 1 raise serious concerns for SMEs, said Small and Medium Enterprises Association Malaysia (Samenta). Its national president, Datuk William Ng, said while the intention to strengthen government revenue is understandable, SMEs are seriously concerned as they are already under tremendous pressure. 'SMEs are currently navigating a challenging operating environment marked by high input costs, tighter consumer spending, and softening external demand,' he said, adding that the upcoming expiration of the United States' reciprocal tariff pause on July 8 threatens to further dampen Malaysia's export competitiveness and expose SMEs to retaliatory trade measures at a time they can least afford it. Against this backdrop, Ng said, the expansion of SST without sufficient exemptions or a higher threshold for SMEs, risks compounding the cost burden on businesses that are least equipped to absorb it. This impact is not limited to raw material costs but extends to rent and business-to-business services that will now fall under the SST's expanded scope, he added. These increases, Ng said, will almost certainly be passed on to consumers, further driving up the cost of living. 'We urge the government to urgently reconsider the threshold for SMEs to minimise the impact on SME profitability and consumer prices. Specifically, we call for an exemption for micro and small enterprises as defined by SME Corp. or at the very least, a revised threshold of RM2 million in annual turnover, up from the current RM500,000, to ensure that only medium and larger businesses fall within the expanded scope,' he said. Ng also urged the Royal Malaysian Customs Department (RMCD) to issue sector-specific guidance immediately to help impacted SMEs determine their obligations under the expanded scope, without having to consult tax agents. 'Without clarity, many SMEs risk accidental non-compliance, despite the enforcement grace period until the end of 2025.' He added that RMCD must also clarify whether, during this transition period, it is acceptable for businesses apply SST on the point of invoice, instead of point of collection. 'Many businesses would have issued invoice in prior months, creating uncertainty on tax liability under the expanded regime,' he noted. Ng said Samenta supports the development of a fair, progressive and transparent tax framework that broadens the base while protecting the country's entrepreneurial assets. However, he added, this must be done in a calibrated manner, with genuine stakeholder consultation and alignment with current economic realities. 'While we were given a briefing on the expanded SST, we cannot consider it a consultation when it is presented as fait accompli,' said Ng. In light of heightened global uncertainties and domestic economic fragility – factors that were not as pronounced when Budget 2025 was tabled, Ng said, Samenta believes that a higher exemption threshold for SMEs is economically prudent. He said Samenta remains ready to collaborate with the government to ensure that fiscal reforms succeed without compromising the resilience and dynamism of the SME sector.
