AS expected, Budget 2022 saw an emphasis on supporting micro, small and medium enterprises (MSMEs) as they cope with the fallout of the pandemic and work towards rebuilding their business.

       The government is focused on ensuring resilient businesses through access to financing, driving strategic investment and restoring affected sectors.

       According to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, a total of RM14.2bil in funds will be made available to SMEs.

       They include an allocation of RM1.8bil for micro financing which will be provided through agencies such as Tekun, Agrobank, BSN, Bank Rakyat and Bank Negara, as well as a RM80mil boost to alternative financing via the Malaysia Co-Investment Fund.

       Bernard Yap, partner and Malaysia Private Client Services Leader at Ernst & Young Tax Consultants Sdn Bhd, notes that there are several measures that would benefit small businesses including a deferment of income tax installment payment for SMEs for six months until June 30, 2022, the extension of the reinvestment allowance for an additional two years and the RM100mil allocation for the Smart Automation matching grants to 200 manufacturing and services companies to automate their business.

       While he notes that the amount allocated for the various initiatives may not be substantial, Yap hopes that there would be more emphasis this round on the availability of these measures.

       “I think there needs to be greater awareness on the available funds so that more SMEs can participate in them. In the past, I think a number of these incentives may not have been fully taken up. So there needs to be more awareness on them,” Yap says.

       Meanwhile, Standard Chartered Malaysia managing director and chief executive officer Abrar A. Anwar highlights that the provision of over RM46bil worth of guarantees by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) to-date has helped SMEs tide over the challenges of the pandemic.