Latest news with #SmallandMediumEnterprisesAssociationofMalaysia
The Sun
3 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.
Borneo Post
10-06-2025
- Business
- Borneo Post
Putrajaya asked to exempt micro, small enterprises from July's SST revision
Datuk William Ng KUCHING (June 10): The Small and Medium Enterprises Association of Malaysia (Samenta) has called for micro and small enterprises to be exempted from the revised Sales and Services Tax (SST). Samenta president Datuk William Ng said the revised SST, which is set to take effect on July 1, should only cover medium and larger businesses. '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 in a statement today. The statement was in response to the announcement by Finance Minister II Datuk Seri Amir Hamzah Azizan that the expanded SST will cover six new categories of services namely leasing, construction, finance, private healthcare, education, and beauty. Under the expanded scope, service tax will now apply to leasing services at a rate of 8 per cent for companies with annual leasing revenue above RM500,000. Ng said SMEs in Malaysia are currently navigating a challenging operating environment marked by high input costs, tighter consumer spending, and softening external demand. He pointed out 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. 'Against this backdrop, 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. 'These increases will almost certainly be passed on to consumers, further driving up the cost of living,' he said. He also urged the Royal Malaysia Customs Department to immediately issue sector-specific guidelines to help SMEs determine their tax obligations under the expanded scope. 'Without clarity, many SMEs risk falling into unintentional non-compliance, despite the enforcement grace period until the end of 2025,' he said. He also called on Customs to clarify whether, during this transition period, it is acceptable for businesses to apply SST on the point of invoice, instead of point of collection. 'Many businesses would have issued invoices in prior months, creating uncertainty on tax liability under the expanded regime,' he added. While Samenta supports the idea of a fair and progressive tax system, Ng said 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, they cannot consider this a consultation when it is presented as 'fait accompli',' he added. lead Sales and Services Tax Samenta William Ng
BusinessToday
06-06-2025
- Business
- BusinessToday
Small Traders Relieved After Govt Postponed E-Invoice Implementation
Micro-enterprises in Malaysia will be permanently exempted from mandatory e-invoicing, while small and medium enterprises (SMEs) earning below RM5 million annually will have their e-invoicing deadline extended to Jan 1, 2026, in a move welcomed by the Small and Medium Enterprises Association of Malaysia (SAMENTA). The Government has also temporarily waived LPG permit requirements for small food and beverage traders, easing the regulatory load on street-level operators and hawkers. Datuk William Ng, National President of SAMENTA 'These exemptions are not only timely but also reflect an understanding of the real challenges faced by small businesses on the ground,' said Datuk William Ng, National President of SAMENTA. The e-invoicing exemption applies to businesses earning below RM500,000 a year, many of which operate without digital infrastructure. SAMENTA had earlier raised concerns that mandatory compliance could push small traders to shut down or turn to informal operations. The association also noted that the LPG permit waiver, although minor on paper, has 'significant implications for business continuity and the cost of living.' SAMENTA credited the Government's response with averting what could have escalated into a 'national micro-business crisis.' Related
New Straits Times
06-06-2025
- Business
- New Straits Times
SMEs hail e-Invoicing exemption as major relief
KUALA LUMPUR: The government's decision to permanently exempt small and medium enterprises (SMEs) from mandatory e-invoicing requirements is a "huge relief" for the small traders, the Small and Medium Enterprises Association of Malaysia (Samenta) said. The association praised the move, particularly the permanent exemption for micro-enterprises, the extended implementation timeline for SMEs, and the temporary waiver of liquefied petroleum gas (LPG) permit requirements for small food and beverage (F&B) traders. Its national president, Datuk William Ng, said the exemptions are not only timely but also reflect an understanding of the real challenges faced by small businesses on the ground. "We have provided input on both issues, and we are grateful that the government has shown genuine care and support for our most vulnerable enterprises," he said in a statement. The government has permanently exempted businesses earning below RM500,000 annually from the e-invoicing mandate. Ng said the exemption spares the smallest traders, hawkers and family-run shops, many operating without digital infrastructure, from compliance burdens that could have forced them to shut down or operate informally. Meanwhile, the postponement of e-invoicing requirements for businesses earning below RM5 million to Jan 1 next year provides SMEs the breathing space they need to prepare, upskill and adapt. Ng noted that the LPG permit temporary waiver, although a small administrative change, has significant implications for business continuity and the cost of living. He said the government's proactive stance has averted what could have become a national micro-business crisis. Under the earlier implementation schedule, businesses with annual revenues between RM500,000 and RM25 million were required to adopt e-invoicing by July 1, 2025, while those earning below RM500,000 were slated to comply by January 1, 2026. The Inland Revenue Board (LHDN), in a recent statement, said the revised decision was made in recognition of the commitments faced by Micro, Small, and Medium Enterprises (MSMEs) in complying with e-invoicing regulations that need sufficient time and face various implementation challenges.
